Is NYSE:DKS suited for quality investing?

In this article we will dive into DICK'S SPORTING GOODS INC (NYSE:DKS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DICK'S SPORTING GOODS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of DICK'S SPORTING GOODS INC

• DICK'S SPORTING GOODS INC has demonstrated significant revenue growth over the past 5 years, with a 7.56% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 23.3%, DICK'S SPORTING GOODS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• DICK'S SPORTING GOODS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.65, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 123.0%, DICK'S SPORTING GOODS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• DICK'S SPORTING GOODS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 24.39%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of DICK'S SPORTING GOODS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:DKS?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall DKS gets a fundamental rating of 6 out of 10. We evaluated DKS against 135 industry peers in the Specialty Retail industry. DKS scores excellent on profitability, but there are some minor concerns on its financial health. DKS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, DKS could be worth investigating further for value investing!.

Our latest full fundamental report of DKS contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.