DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
216.66 USD
+6.58 (+3.13%)
216.66 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DKS. DKS was compared to 122 industry peers in the Specialty Retail industry. DKS scores excellent on profitability, but there are some minor concerns on its financial health. DKS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
In the past year DKS had a positive cash flow from operations.
Each year in the past 5 years DKS has been profitable.
In the past 5 years DKS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.86%, DKS is doing good in the industry, outperforming 73.77% of the companies in the same industry.
DKS has a better Return On Equity (18.49%) than 79.51% of its industry peers.
With a decent Return On Invested Capital value of 8.85%, DKS is doing good in the industry, outperforming 72.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DKS is above the industry average of 12.14%.
The last Return On Invested Capital (8.85%) for DKS is well below the 3 year average (16.29%), which needs to be investigated, but indicates that DKS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROIC | 8.85% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.25%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
1.3 Margins
DKS's Profit Margin of 6.86% is amongst the best of the industry. DKS outperforms 81.15% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
The Operating Margin of DKS (9.71%) is better than 83.61% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin of 35.33%. This is comparable to the rest of the industry: DKS outperforms 45.08% of its industry peers.
In the last couple of years the Gross Margin of DKS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% |
OM growth 3Y-12.82%
OM growth 5Y17.23%
PM growth 3Y-11.16%
PM growth 5Y20.59%
GM growth 3Y-2.16%
GM growth 5Y4.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DKS is creating some value.
The number of shares outstanding for DKS has been reduced compared to 1 year ago.
DKS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DKS has been reduced compared to a year ago.
2.2 Solvency
DKS has an Altman-Z score of 2.81. This is not the best score and indicates that DKS is in the grey zone with still only limited risk for bankruptcy at the moment.
DKS has a better Altman-Z score (2.81) than 61.48% of its industry peers.
The Debt to FCF ratio of DKS is 21.52, which is on the high side as it means it would take DKS, 21.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DKS (21.52) is comparable to the rest of the industry.
DKS has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
DKS has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.93
WACC9.53%
2.3 Liquidity
DKS has a Current Ratio of 1.57. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DKS (1.57) is better than 63.11% of its industry peers.
A Quick Ratio of 0.37 indicates that DKS may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, DKS is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for DKS have decreased by -1.72% in the last year.
Measured over the past years, DKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.43% on average per year.
Looking at the last year, DKS shows a quite strong growth in Revenue. The Revenue has grown by 10.86% in the last year.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
3.2 Future
Based on estimates for the next years, DKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
DKS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.56% yearly.
EPS Next Y-8.57%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
EPS Next 5Y8.24%
Revenue Next Year30.86%
Revenue Next 2Y28.52%
Revenue Next 3Y19.39%
Revenue Next 5Y12.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.45, the valuation of DKS can be described as correct.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than 78.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (27.00), we can say DKS is valued slightly cheaper.
DKS is valuated correctly with a Price/Forward Earnings ratio of 14.50.
DKS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 75.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DKS to the average of the S&P500 Index (23.70), we can say DKS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
60.66% of the companies in the same industry are more expensive than DKS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as DKS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 219.53 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y3.16%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.20, DKS pays a bit more dividend than its industry peers.
DKS's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
On average, the dividend of DKS grows each year by 32.36%, which is quite nice.
DKS has been paying a dividend for at least 10 years, so it has a reliable track record.
DKS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.36%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
38.61% of the earnings are spent on dividend by DKS. This is a low number and sustainable payout ratio.
The dividend of DKS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.61%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
216.66
+6.58 (+3.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.15%
Inst Owner Change0%
Ins Owners2.86%
Ins Owner Change-0.16%
Market Cap19.43B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (11.15%)
Short Float %9.75%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP38.61%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.91%
Min EPS beat(2)0.36%
Max EPS beat(2)1.47%
EPS beat(4)3
Avg EPS beat(4)0.79%
Min EPS beat(4)-0.29%
Max EPS beat(4)1.62%
EPS beat(8)7
Avg EPS beat(8)5.23%
EPS beat(12)10
Avg EPS beat(12)3.11%
EPS beat(16)14
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)7.23%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)14.91%
Revenue beat(4)3
Avg Revenue beat(4)4.22%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)14.91%
Revenue beat(8)7
Avg Revenue beat(8)2.49%
Revenue beat(12)10
Avg Revenue beat(12)2.03%
Revenue beat(16)14
Avg Revenue beat(16)2.33%
PT rev (1m)-2.52%
PT rev (3m)-2.61%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-27.24%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)45.18%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)19.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.5 | ||
| P/S | 1.31 | ||
| P/FCF | 219.53 | ||
| P/OCF | 17.37 | ||
| P/B | 3.52 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)14.02
EY6.47%
EPS(NY)14.94
Fwd EY6.9%
FCF(TTM)0.99
FCFY0.46%
OCF(TTM)12.48
OCFY5.76%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.51
Graham Number139.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.49% | ||
| ROCE | 11.33% | ||
| ROIC | 8.85% | ||
| ROICexc | 9.45% | ||
| ROICexgc | 10.81% | ||
| OM | 9.71% | ||
| PM (TTM) | 6.86% | ||
| GM | 35.33% | ||
| FCFM | 0.59% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.25%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
ROICexc(3y)22.36%
ROICexc(5y)25.3%
ROICexgc(3y)23.86%
ROICexgc(5y)27.4%
ROCE(3y)20.87%
ROCE(5y)21.8%
ROICexgc growth 3Y-23.3%
ROICexgc growth 5Y21.21%
ROICexc growth 3Y-22.28%
ROICexc growth 5Y21.8%
OM growth 3Y-12.82%
OM growth 5Y17.23%
PM growth 3Y-11.16%
PM growth 5Y20.59%
GM growth 3Y-2.16%
GM growth 5Y4.22%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 233.32% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.3% | ||
| Profit Quality | 8.67% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.81 |
F-Score5
WACC9.53%
ROIC/WACC0.93
Cap/Depr(3y)149.72%
Cap/Depr(5y)122.69%
Cap/Sales(3y)4.48%
Cap/Sales(5y)3.66%
Profit Quality(3y)62.33%
Profit Quality(5y)104.74%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.72%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%1.09%
EPS Next Y-8.57%
EPS Next 2Y3.16%
EPS Next 3Y6.1%
EPS Next 5Y8.24%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
Revenue Next Year30.86%
Revenue Next 2Y28.52%
Revenue Next 3Y19.39%
Revenue Next 5Y12.56%
EBIT growth 1Y-1.11%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year29.15%
EBIT Next 3Y18.93%
EBIT Next 5Y15.12%
FCF growth 1Y-92.32%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-32.23%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%
DICK'S SPORTING GOODS INC / DKS FAQ
What is the fundamental rating for DKS stock?
ChartMill assigns a fundamental rating of 6 / 10 to DKS.
What is the valuation status of DICK'S SPORTING GOODS INC (DKS) stock?
ChartMill assigns a valuation rating of 5 / 10 to DICK'S SPORTING GOODS INC (DKS). This can be considered as Fairly Valued.
Can you provide the profitability details for DICK'S SPORTING GOODS INC?
DICK'S SPORTING GOODS INC (DKS) has a profitability rating of 8 / 10.
How financially healthy is DICK'S SPORTING GOODS INC?
The financial health rating of DICK'S SPORTING GOODS INC (DKS) is 5 / 10.
What is the earnings growth outlook for DICK'S SPORTING GOODS INC?
The Earnings per Share (EPS) of DICK'S SPORTING GOODS INC (DKS) is expected to decline by -8.57% in the next year.