DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
NYSE:DKS - New York Stock Exchange, Inc. - US2533931026 - Common Stock - Currency: USD
Overall DKS gets a fundamental rating of 6 out of 10. We evaluated DKS against 122 industry peers in the Specialty Retail industry. DKS has an excellent profitability rating, 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
DKS had positive earnings in the past year.
DKS had a positive operating cash flow in the past year.
In the past 5 years DKS has always been profitable.
In the past 5 years DKS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.06%, DKS belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
DKS's Return On Equity of 37.82% is amongst the best of the industry. DKS outperforms 90.16% of its industry peers.
With an excellent Return On Invested Capital value of 16.09%, DKS belongs to the best of the industry, outperforming 86.89% 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 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 37.82% | ||
| ROIC | 16.09% |
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
The Profit Margin of DKS (8.49%) is better than 86.89% 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 11.10%, DKS belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
In the last couple of years the Operating Margin of DKS has grown nicely.
DKS has a Gross Margin (36.00%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DKS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | 8.49% | ||
| GM | 36% |
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.
The number of shares outstanding for DKS has been reduced compared to 1 year ago.
The number of shares outstanding for DKS has been reduced compared to 5 years ago.
The debt/assets ratio for DKS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.24 indicates that DKS is not in any danger for bankruptcy at the moment.
DKS has a Altman-Z score of 4.24. This is amongst the best in the industry. DKS outperforms 84.43% of its industry peers.
The Debt to FCF ratio of DKS is 4.26, which is a neutral value as it means it would take DKS, 4.26 years of fcf income to pay off all of its debts.
DKS's Debt to FCF ratio of 4.26 is fine compared to the rest of the industry. DKS outperforms 68.85% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that DKS is not too dependend on debt financing.
DKS has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.72
WACC9.37%
2.3 Liquidity
DKS has a Current Ratio of 1.62. This is a normal value and indicates that DKS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.62, DKS is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that DKS may have some problems paying its short term obligations.
The Quick ratio of DKS (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.08% 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
DKS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.33%.
Measured over the past years, DKS shows a quite strong growth in Revenue. The Revenue has been growing by 8.96% on average per year.
EPS 1Y (TTM)9.08%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-1.7%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%5.18%
3.2 Future
DKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
DKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.06% yearly.
EPS Next Y3.06%
EPS Next 2Y4.98%
EPS Next 3Y5.41%
EPS Next 5Y6.03%
Revenue Next Year4.4%
Revenue Next 2Y4.18%
Revenue Next 3Y4.3%
Revenue Next 5Y4.06%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.75, which indicates a correct valuation of DKS.
Based on the Price/Earnings ratio, DKS is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
DKS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
DKS is valuated correctly with a Price/Forward Earnings ratio of 13.33.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than 70.49% of the companies in the same industry.
DKS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DKS is valued a bit cheaper than 63.11% of the companies in the same industry.
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 | 47.37 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.82
PEG (5Y)0.48
EPS Next 2Y4.98%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, 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 4.90. DKS pays more dividend than 83.61% of the companies in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of DKS grows each year by 32.35%, which is quite nice.
DKS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DKS decreased in the last 3 years.
Dividend Growth(5Y)32.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DKS pays out 31.82% 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.
DP31.82%
EPS Next 2Y4.98%
EPS Next 3Y5.41%
206.17
-2.68 (-1.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.32%
Inst Owner Change-0.01%
Ins Owners3.4%
Ins Owner Change0.69%
Market Cap16.50B
Analysts70.97
Price Target212.34 (2.99%)
Short Float %8.9%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend4.5
Dividend Growth(5Y)32.35%
DP31.82%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-0.29%
Max EPS beat(2)1.62%
EPS beat(4)3
Avg EPS beat(4)3.93%
Min EPS beat(4)-0.29%
Max EPS beat(4)12.95%
EPS beat(8)6
Avg EPS beat(8)3.63%
EPS beat(12)10
Avg EPS beat(12)4.48%
EPS beat(16)14
Avg EPS beat(16)13.3%
Revenue beat(2)2
Avg Revenue beat(2)1.21%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.98%
Revenue beat(4)4
Avg Revenue beat(4)0.63%
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)1.61%
Revenue beat(16)15
Avg Revenue beat(16)2.84%
PT rev (1m)0.03%
PT rev (3m)-11.86%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.33 | ||
| P/S | 1.21 | ||
| P/FCF | 47.37 | ||
| P/OCF | 13.12 | ||
| P/B | 5.41 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)13.98
EY6.78%
EPS(NY)15.47
Fwd EY7.5%
FCF(TTM)4.35
FCFY2.11%
OCF(TTM)15.72
OCFY7.62%
SpS169.88
BVpS38.13
TBVpS34.33
PEG (NY)4.82
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.06% | ||
| ROE | 37.82% | ||
| ROCE | 20.61% | ||
| ROIC | 16.09% | ||
| ROICexc | 18.74% | ||
| ROICexgc | 19.69% | ||
| OM | 11.1% | ||
| PM (TTM) | 8.49% | ||
| GM | 36% | ||
| FCFM | 2.56% |
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-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 223.64% | ||
| Cap/Sales | 6.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.66% | ||
| Profit Quality | 30.18% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 4.24 |
F-Score7
WACC9.37%
ROIC/WACC1.72
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)9.08%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-1.7%
EPS Next Y3.06%
EPS Next 2Y4.98%
EPS Next 3Y5.41%
EPS Next 5Y6.03%
Revenue 1Y (TTM)3.33%
Revenue growth 3Y3.03%
Revenue growth 5Y8.96%
Sales Q2Q%5.18%
Revenue Next Year4.4%
Revenue Next 2Y4.18%
Revenue Next 3Y4.3%
Revenue Next 5Y4.06%
EBIT growth 1Y17.02%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.76%
EBIT Next Year31.5%
EBIT Next 3Y13.78%
EBIT Next 5Y10%
FCF growth 1Y-37.68%
FCF growth 3Y-26.99%
FCF growth 5Y22.17%
OCF growth 1Y34.74%
OCF growth 3Y-6.73%
OCF growth 5Y26.52%