DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
197.97 USD
-1.01 (-0.51%)
197.97 USD
0 (0%)
Overall DKS gets a fundamental rating of 6 out of 10. We evaluated DKS against 123 industry peers in the Specialty Retail industry. While DKS belongs to the best of the industry regarding profitability, 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.
DKS had positive earnings in each of the past 5 years.
Each year in the past 5 years DKS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.86%, DKS is doing good in the industry, outperforming 73.98% of the companies in the same industry.
DKS's Return On Equity of 18.49% is fine compared to the rest of the industry. DKS outperforms 79.67% of its industry peers.
With a decent Return On Invested Capital value of 8.85%, DKS is doing good in the industry, outperforming 72.36% of the companies in the same industry.
DKS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 12.14%.
The 3 year average ROIC (16.29%) for DKS is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 6.86%, DKS belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
DKS's Profit Margin has improved in the last couple of years.
DKS has a better Operating Margin (9.71%) than 83.74% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin (35.33%) which is in line with its industry peers.
DKS's Gross Margin has improved in the last couple of years.
| 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
DKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DKS has been reduced compared to 1 year ago.
Compared to 5 years ago, DKS has less shares outstanding
The debt/assets ratio for DKS has been reduced compared to a year ago.
2.2 Solvency
DKS has an Altman-Z score of 2.76. 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.
With a decent Altman-Z score value of 2.76, DKS is doing good in the industry, outperforming 61.79% of the companies in the same industry.
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.
DKS has a Debt to FCF ratio (21.52) which is in line with its industry peers.
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 | 2.76 |
ROIC/WACC0.94
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DKS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, DKS is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that DKS may have some problems paying its short term obligations.
DKS's Quick ratio of 0.37 is on the low side compared to the rest of the industry. DKS is outperformed by 64.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
DKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.72%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
Measured over the past years, DKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.97% on average per year.
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
The Earnings Per Share is expected to grow by 8.24% on average over the next years. This is quite good.
Based on estimates for the next years, DKS will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
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 14.12, the valuation of DKS can be described as correct.
78.86% of the companies in the same industry are more expensive than DKS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, DKS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.25, DKS is valued correctly.
75.61% of the companies in the same industry are more expensive than DKS, based on the Price/Forward Earnings ratio.
DKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKS is valued a bit cheaper than 60.98% of the companies in the same industry.
DKS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 200.6 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
The excellent profitability rating of DKS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y3.16%
EPS Next 3Y6.1%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.01, DKS pays a bit more dividend than its industry peers.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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%
197.97
-1.01 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change16.89%
Ins Owners2.88%
Ins Owner Change-0.17%
Market Cap17.75B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.82 (21.64%)
Short Float %9.75%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)-0.39%
EPS NQ rev (1m)-28.79%
EPS NQ rev (3m)-26.81%
EPS NY rev (1m)-11.98%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)31.8%
Revenue NQ rev (3m)52.17%
Revenue NY rev (1m)15.06%
Revenue NY rev (3m)23.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.25 | ||
| P/S | 1.19 | ||
| P/FCF | 200.6 | ||
| P/OCF | 15.87 | ||
| P/B | 3.22 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)14.02
EY7.08%
EPS(NY)14.94
Fwd EY7.55%
FCF(TTM)0.99
FCFY0.5%
OCF(TTM)12.48
OCFY6.3%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.46
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 | 2.76 |
F-Score5
WACC9.4%
ROIC/WACC0.94
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.