DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock - Currency: USD
DKS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. DKS gets an excellent profitability rating and is at the same time showing great financial health properties. DKS is not valued too expensively and it also shows a decent growth rate. These ratings would make DKS suitable for quality investing!
1. Profitability
1.1 Basic Checks
DKS had positive earnings in the past year.
In the past year DKS had a positive cash flow from operations.
Each year in the past 5 years DKS has been profitable.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.14%, DKS belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.44%, DKS belongs to the top of the industry, outperforming 87.60% of the companies in the same industry.
DKS has a better Return On Invested Capital (15.59%) than 84.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DKS is above the industry average of 12.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 36.44% | ||
| ROIC | 15.59% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.24%
ROE(5y)42.54%
ROIC(3y)16.29%
ROIC(5y)17.01%
1.3 Margins
Looking at the Profit Margin, with a value of 8.67%, DKS belongs to the top of the industry, outperforming 86.78% of the companies in the same industry.
DKS's Profit Margin has improved in the last couple of years.
The Operating Margin of DKS (10.96%) is better than 84.30% of its industry peers.
In the last couple of years the Operating Margin of DKS has grown nicely.
The Gross Margin of DKS (35.90%) is comparable to the rest of the industry.
DKS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.9% |
OM growth 3Y-12.83%
OM growth 5Y17.25%
PM growth 3Y-11.16%
PM growth 5Y20.63%
GM growth 3Y-2.16%
GM growth 5Y4.22%
2. Health
2.1 Basic Checks
DKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DKS has less shares outstanding
The number of shares outstanding for DKS has been reduced compared to 5 years ago.
Compared to 1 year ago, DKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.08 indicates that DKS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.08, DKS belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
The Debt to FCF ratio of DKS is 2.91, which is a good value as it means it would take DKS, 2.91 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.91, DKS is doing good in the industry, outperforming 70.25% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that DKS is not too dependend on debt financing.
DKS's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. DKS outperforms 47.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.64
WACC9.53%
2.3 Liquidity
DKS has a Current Ratio of 1.76. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
DKS has a Current ratio of 1.76. This is in the better half of the industry: DKS outperforms 72.73% of its industry peers.
A Quick Ratio of 0.67 indicates that DKS may have some problems paying its short term obligations.
DKS has a Quick ratio of 0.67. This is in the better half of the industry: DKS outperforms 60.33% of its industry peers.
The current and quick ratio evaluation for DKS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.67% over the past year.
The Earnings Per Share has been growing by 30.43% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.53% in the past year.
DKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.96% yearly.
EPS 1Y (TTM)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-5.97%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%0.45%
3.2 Future
The Earnings Per Share is expected to grow by 6.94% on average over the next years.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y3.19%
EPS Next 2Y4.94%
EPS Next 3Y5.24%
EPS Next 5Y6.94%
Revenue Next Year4.24%
Revenue Next 2Y4.05%
Revenue Next 3Y4.23%
Revenue Next 5Y4.69%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.53 indicates a correct valuation of DKS.
DKS's Price/Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 78.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of DKS to the average of the S&P500 Index (26.03), we can say DKS is valued rather cheaply.
A Price/Forward Earnings ratio of 12.14 indicates a correct valuation of DKS.
DKS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, DKS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than DKS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DKS is valued a bit cheaper than the industry average as 60.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.59 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)3.93
PEG (5Y)0.41
EPS Next 2Y4.94%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.71%, DKS has a reasonable but not impressive dividend return.
The stock price of DKS dropped by -21.69% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DKS's Dividend Yield is rather good when compared to the industry average which is at 5.10. DKS pays more dividend than 85.12% of the companies in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 32.35%!
DKS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DKS decreased recently.
Dividend Growth(5Y)32.35%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.04% of the earnings are spent on dividend by DKS. This is a low number and sustainable payout ratio.
DKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.04%
EPS Next 2Y4.94%
EPS Next 3Y5.24%
175.92
-7.15 (-3.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner Change-13.26%
Ins Owners3.19%
Ins Owner Change0.59%
Market Cap14.05B
Analysts73.94
Price Target234.75 (33.44%)
Short Float %7.49%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend4.5
Dividend Growth(5Y)32.35%
DP31.04%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.54%
Min EPS beat(2)1.45%
Max EPS beat(2)1.62%
EPS beat(4)4
Avg EPS beat(4)6.66%
Min EPS beat(4)1.45%
Max EPS beat(4)12.95%
EPS beat(8)7
Avg EPS beat(8)4.38%
EPS beat(12)11
Avg EPS beat(12)5.67%
EPS beat(16)15
Avg EPS beat(16)28.07%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.07%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)0.97%
Min Revenue beat(4)0.05%
Max Revenue beat(4)1.98%
Revenue beat(8)7
Avg Revenue beat(8)0.79%
Revenue beat(12)11
Avg Revenue beat(12)1.83%
Revenue beat(16)15
Avg Revenue beat(16)4.83%
PT rev (1m)-2.56%
PT rev (3m)-4.52%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 12.14 | ||
| P/S | 1.05 | ||
| P/FCF | 27.59 | ||
| P/OCF | 10.71 | ||
| P/B | 4.39 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)14.04
EY7.98%
EPS(NY)14.49
Fwd EY8.24%
FCF(TTM)6.38
FCFY3.62%
OCF(TTM)16.43
OCFY9.34%
SpS168.33
BVpS40.05
TBVpS36.24
PEG (NY)3.93
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 36.44% | ||
| ROCE | 19.98% | ||
| ROIC | 15.59% | ||
| ROICexc | 20.22% | ||
| ROICexgc | 21.37% | ||
| OM | 10.96% | ||
| PM (TTM) | 8.67% | ||
| GM | 35.9% | ||
| FCFM | 3.79% |
ROA(3y)11.33%
ROA(5y)11.53%
ROE(3y)39.24%
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%
ROICexcg growth 3Y-23.31%
ROICexcg growth 5Y21.23%
ROICexc growth 3Y-22.29%
ROICexc growth 5Y21.82%
OM growth 3Y-12.83%
OM growth 5Y17.25%
PM growth 3Y-11.16%
PM growth 5Y20.63%
GM growth 3Y-2.16%
GM growth 5Y4.22%
F-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.91 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 200.44% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 29.08 | ||
| Cash Conversion | 69.99% | ||
| Profit Quality | 43.7% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 4.08 |
F-Score6
WACC9.53%
ROIC/WACC1.64
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)104.76%
High Growth Momentum
Growth
EPS 1Y (TTM)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-5.97%
EPS Next Y3.19%
EPS Next 2Y4.94%
EPS Next 3Y5.24%
EPS Next 5Y6.94%
Revenue 1Y (TTM)3.53%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%0.45%
Revenue Next Year4.24%
Revenue Next 2Y4.05%
Revenue Next 3Y4.23%
Revenue Next 5Y4.69%
EBIT growth 1Y14.74%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.76%
EBIT Next Year32.17%
EBIT Next 3Y14.1%
EBIT Next 5Y11.17%
FCF growth 1Y-45.82%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-14.11%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%