DICK'S SPORTING GOODS INC (NYSE:DKS) – A Quality Retail Stock Worth Watching

DICK'S SPORTING GOODS INC (NYSE:DKS) stands out as a potential candidate for quality investors, according to our Caviar Cruise stock screener. The company demonstrates strong profitability, financial health, and consistent growth, making it an interesting option for long-term investors.

Why DKS Fits the Quality Investing Criteria

• Strong Revenue and EBIT Growth: Over the past five years, DKS has achieved a revenue growth rate of 8.96% annually, while EBIT growth has been even more impressive at 27.76%, indicating improving operational efficiency.
• High Return on Invested Capital (ROIC): With an ROIC of 19.69%, the company efficiently generates profits from its capital investments, placing it among the top performers in its industry.
• Healthy Debt Management: The Debt-to-Free Cash Flow ratio of 4.26 suggests that DKS could repay its debt in just over four years using its current cash flow, reflecting a manageable financial structure.
• Profit Quality: The company converts 104.76% of its net income into free cash flow, demonstrating strong earnings quality and financial sustainability.

Fundamental Analysis Summary

DKS earns a solid 6 out of 10 in our fundamental analysis, with strengths in profitability and financial health. Key highlights include:

• Profitability: High margins (Operating Margin of 11.10%, Profit Margin of 8.49%) and strong returns (ROE of 37.82%) place DKS well above industry averages.
• Valuation: Trading at a P/E of 14.98, the stock appears reasonably priced compared to peers and the broader market.
• Dividend: A 2.32% yield with a history of dividend growth adds appeal for income-focused investors.

Our Caviar Cruise screener identifies more stocks with similar quality traits. For a deeper look, review the full fundamental report on DKS.

Disclaimer

This is not investing advice! The observations here are based on current data, but investors should conduct their own research before making decisions.