DICK'S SPORTING GOODS INC (DKS)
US2533931026 - Common Stock
Taking everything into account, DKS scores 7 out of 10 in our fundamental rating. DKS was compared to 126 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 has a decent growth rate and is not valued too expensively.
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.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DKS has a Return On Assets of 11.24%. This is amongst the best in the industry. DKS outperforms 85.71% of its industry peers.
DKS has a better Return On Equity (39.98%) than 89.68% of its industry peers.
DKS's Return On Invested Capital of 15.15% is amongst the best of the industry. DKS outperforms 84.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DKS is significantly above the industry average of 13.85%.
The last Return On Invested Capital (15.15%) for DKS is well below the 3 year average (19.29%), which needs to be investigated, but indicates that DKS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 39.98% | ||
| ROIC | 15.15% |
ROA(3y)13.22%
ROA(5y)10.19%
ROE(3y)51.21%
ROE(5y)38.69%
ROIC(3y)19.29%
ROIC(5y)15.25%
1.3 Margins
The Profit Margin of DKS (8.06%) is better than 84.92% of its industry peers.
DKS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.89%, DKS belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
DKS's Operating Margin has improved in the last couple of years.
DKS's Gross Margin of 34.92% is in line compared to the rest of the industry. DKS outperforms 46.83% of its industry peers.
DKS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.89% | ||
| PM (TTM) | 8.06% | ||
| GM | 34.92% |
OM growth 3Y8.56%
OM growth 5Y13.41%
PM growth 3Y13.38%
PM growth 5Y16.27%
GM growth 3Y3.13%
GM growth 5Y3.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DKS is creating value.
DKS has less shares outstanding than it did 1 year ago.
DKS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.46 indicates that DKS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.46, DKS belongs to the best of the industry, outperforming 84.92% of the companies in the same industry.
DKS has a debt to FCF ratio of 1.58. This is a very positive value and a sign of high solvency as it would only need 1.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.58, DKS is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that DKS is somewhat dependend on debt financing.
The Debt to Equity ratio of DKS (0.57) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for DKS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.73
WACC8.76%
2.3 Liquidity
DKS has a Current Ratio of 1.78. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
DKS's Current ratio of 1.78 is fine compared to the rest of the industry. DKS outperforms 69.05% of its industry peers.
A Quick Ratio of 0.74 indicates that DKS may have some problems paying its short term obligations.
The Quick ratio of DKS (0.74) is comparable to the rest of the industry.
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 | 1.78 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.13% over the past year.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.79% yearly.
The Revenue has been growing slightly by 4.98% in the past year.
DKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.01% yearly.
EPS 1Y (TTM)7.13%
EPS 3Y26.72%
EPS 5Y31.79%
EPS growth Q2Q31.4%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y10.65%
Revenue growth 5Y9.01%
Revenue growth Q2Q7.77%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.93% yearly.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 3.24% on average per year.
EPS Next Y3.69%
EPS Next 2Y5.98%
EPS Next 3Y6.54%
EPS Next 5Y5.93%
Revenue Next Year2%
Revenue Next 2Y2.98%
Revenue Next 3Y3.62%
Revenue Next 5Y3.24%
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
Based on the Price/Earnings ratio of 15.69, the valuation of DKS can be described as correct.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.73. DKS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.13, DKS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 70.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.41. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
DKS's Enterprise Value to EBITDA ratio is in line with the industry average.
DKS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DKS is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 9.77 |
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)4.25
PEG (5Y)0.49
EPS Next 2Y5.98%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, DKS has a reasonable but not impressive dividend return.
DKS's Dividend Yield is rather good when compared to the industry average which is at 3.56. DKS pays more dividend than 84.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of DKS is nicely growing with an annual growth rate of 36.64%!
DKS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DKS decreased recently.
Dividend Growth(5Y)36.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DKS pays out 33.56% of its income as dividend. This is a sustainable payout ratio.
DKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.56%
EPS Next 2Y5.98%
EPS Next 3Y6.54%
DICK'S SPORTING GOODS INC
NYSE:DKS (5/3/2024, 7:04:00 PM)
After market: 202.74 0 (0%)202.74
+3.55 (+1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 15.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.25
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 39.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.89% | ||
| PM (TTM) | 8.06% | ||
| GM | 34.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.13%
EPS 3Y26.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.98%
Revenue growth 3Y10.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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FCF growth 1Y
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