DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - NYSE:DKS - US2533931026 - Common Stock
225.23 USD
-5.01 (-2.18%)
225.1 USD
-0.13 (-0.06%)
Taking everything into account, DKS scores 6 out of 10 in our fundamental rating. DKS was compared to 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making DKS a very profitable company, without any liquidiy or solvency issues. DKS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
DKS had a positive operating cash flow in the past year.
DKS had positive earnings in each of the past 5 years.
DKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DKS has a Return On Assets of 10.98%. This is amongst the best in the industry. DKS outperforms 86.89% of its industry peers.
The Return On Equity of DKS (34.98%) is better than 88.52% of its industry peers.
The Return On Invested Capital of DKS (15.18%) is better than 85.25% of its industry peers.
DKS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 34.98% | ||
| ROIC | 15.18% |
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 has a Profit Margin of 8.52%. This is amongst the best in the industry. DKS outperforms 86.07% of its industry peers.
In the last couple of years the Profit Margin of DKS has grown nicely.
DKS's Operating Margin of 10.89% is amongst the best of the industry. DKS outperforms 86.07% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin of 36.10%. This is comparable to the rest of the industry: DKS outperforms 50.00% of its industry peers.
DKS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 8.52% | ||
| GM | 36.1% |
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.
Compared to 1 year ago, DKS has less shares outstanding
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 4.57. This indicates that DKS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DKS (4.57) is better than 84.43% of its industry peers.
DKS has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as DKS would need 3.19 years to pay back of all of its debts.
DKS's Debt to FCF ratio of 3.19 is fine compared to the rest of the industry. DKS outperforms 72.13% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that DKS is not too dependend on debt financing.
DKS has a Debt to Equity ratio (0.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.61
WACC9.44%
2.3 Liquidity
DKS has a Current Ratio of 1.70. 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 1.70 is fine compared to the rest of the industry. DKS outperforms 74.59% of its industry peers.
DKS has a Quick Ratio of 1.70. This is a bad value and indicates that DKS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, DKS is in line with its industry, outperforming 55.74% of the companies in the same 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 | 1.7 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
DKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.62%.
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.
DKS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.62%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%0.23%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%4.98%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.86% yearly.
DKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y3.07%
EPS Next 2Y4.81%
EPS Next 3Y5.73%
EPS Next 5Y5.86%
Revenue Next Year6.06%
Revenue Next 2Y4.22%
Revenue Next 3Y4.21%
Revenue Next 5Y2.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 16.10, which indicates a correct valuation of DKS.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than 76.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. DKS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.60, DKS is valued correctly.
DKS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DKS is cheaper than 70.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.64. DKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKS is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DKS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.46 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DKS does not grow enough to justify the current Price/Earnings ratio.
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.25
PEG (5Y)0.53
EPS Next 2Y4.81%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.13%.
DKS's Dividend Yield is rather good when compared to the industry average which is at 5.22. DKS pays more dividend than 82.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, DKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of DKS grows each year by 32.36%, which is quite nice.
DKS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DKS decreased in the last 3 years.
Dividend Growth(5Y)32.36%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
31.93% 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.
DP31.93%
EPS Next 2Y4.81%
EPS Next 3Y5.73%
225.23
-5.01 (-2.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.12%
Inst Owner Change1.5%
Ins Owners3.39%
Ins Owner Change0.62%
Market Cap20.20B
Analysts72.67
Price Target241.76 (7.34%)
Short Float %10%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP31.93%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.04%
Min EPS beat(2)-0.29%
Max EPS beat(2)0.36%
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)7.01%
EPS beat(12)10
Avg EPS beat(12)4.36%
EPS beat(16)14
Avg EPS beat(16)8.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)0.43%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)1.98%
Revenue beat(8)7
Avg Revenue beat(8)0.92%
Revenue beat(12)10
Avg Revenue beat(12)1.54%
Revenue beat(16)14
Avg Revenue beat(16)1.95%
PT rev (1m)10.2%
PT rev (3m)13.85%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.6 | ||
| P/S | 1.47 | ||
| P/FCF | 43.46 | ||
| P/OCF | 14.21 | ||
| P/B | 6.02 | ||
| P/tB | 6.62 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)13.99
EY6.21%
EPS(NY)15.42
Fwd EY6.85%
FCF(TTM)5.18
FCFY2.3%
OCF(TTM)15.85
OCFY7.04%
SpS153.57
BVpS37.41
TBVpS34.02
PEG (NY)5.25
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 34.98% | ||
| ROCE | 19.44% | ||
| ROIC | 15.18% | ||
| ROICexc | 18.06% | ||
| ROICexgc | 18.95% | ||
| OM | 10.89% | ||
| PM (TTM) | 8.52% | ||
| GM | 36.1% | ||
| FCFM | 3.37% |
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%
ROICexcg growth 3Y-23.3%
ROICexcg 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-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 230.65% | ||
| Cap/Sales | 6.95% | ||
| Interest Coverage | 31.96 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | 39.61% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 4.57 |
F-Score6
WACC9.44%
ROIC/WACC1.61
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)-2.62%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%0.23%
EPS Next Y3.07%
EPS Next 2Y4.81%
EPS Next 3Y5.73%
EPS Next 5Y5.86%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%4.98%
Revenue Next Year6.06%
Revenue Next 2Y4.22%
Revenue Next 3Y4.21%
Revenue Next 5Y2.74%
EBIT growth 1Y3.54%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year32.84%
EBIT Next 3Y14.31%
EBIT Next 5Y13.07%
FCF growth 1Y-56.51%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y-6.1%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%