Why the quality investor may take a look at DICK'S SPORTING GOODS INC (NYSE:DKS).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if DICK'S SPORTING GOODS INC (NYSE:DKS) is suited for quality investing. Investors should of course do their own research, but we spotted DICK'S SPORTING GOODS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why DKS may be interesting for quality investors.

• DKS has achieved substantial revenue growth over the past 5 years, with a 8.96% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of DKS stands at 21.37%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of DKS stands at 2.91, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of DKS stands at 105.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• DKS has consistently achieved strong EBIT growth over the past 5 years, with a 27.76% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• DKS demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for DKS?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, DKS scores 7 out of 10 in our fundamental rating. DKS was compared to 121 industry peers in the Specialty Retail industry. DKS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DKS has a correct valuation and a medium growth rate. This makes DKS very considerable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of DKS

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

Keep in mind

This article should in no way be interpreted as advice. 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.