DICK'S SPORTING GOODS INC (DKS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DKS - US2533931026 - Common Stock
232.22 USD
+6.26 (+2.77%)
232.145 USD
-0.07 (-0.03%)
DKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While DKS has a great profitability rating, there are some minor concerns on its financial health. DKS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make DKS a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year DKS was profitable.
DKS had a positive operating cash flow in the past year.
In the past 5 years DKS has always 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 5.86%. This is in the better half of the industry: DKS outperforms 75.41% of its industry peers.
DKS's Return On Equity of 18.49% is amongst the best of the industry. DKS outperforms 80.33% of its industry peers.
The Return On Invested Capital of DKS (8.85%) is better than 72.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DKS is above the industry average of 11.71%.
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 82.79% of the companies in the same industry.
DKS's Profit Margin has improved in the last couple of years.
The Operating Margin of DKS (9.71%) is better than 82.79% of its industry peers.
In the last couple of years the Operating Margin of DKS has grown nicely.
DKS has a Gross Margin (35.33%) which 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 | 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.
DKS has less shares outstanding than it did 1 year ago.
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
DKS has an Altman-Z score of 2.88. 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.
DKS has a better Altman-Z score (2.88) than 69.67% of its industry peers.
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.
The Debt to FCF ratio of DKS (21.52) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.35 indicates that DKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, DKS perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 21.52 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.96
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.57 indicates that DKS should not have too much problems paying its short term obligations.
The Current ratio of DKS (1.57) is better than 68.03% of its industry peers.
A Quick Ratio of 0.37 indicates that DKS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, DKS is doing worse than 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.67% over the past year.
DKS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.43% yearly.
DKS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-68.6%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
3.2 Future
Based on estimates for the next years, DKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.24% on average per year.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
Revenue Next 5Y12.56%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DKS is valuated correctly with a Price/Earnings ratio of 16.54.
77.05% 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 26.46, DKS is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.51 indicates a correct valuation of DKS.
68.03% of the companies in the same industry are more expensive than DKS, based on the Price/Forward Earnings ratio.
DKS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 15.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DKS is on the same level as its industry peers.
DKS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 235.3 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
DKS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y3.26%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
DKS has a Yearly Dividend Yield of 2.15%.
Compared to an average industry Dividend Yield of 5.67, DKS pays a better dividend. On top of this DKS pays more dividend than 82.79% of the companies listed in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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
DKS pays out 38.61% 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.
DP38.61%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
232.22
+6.26 (+2.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change16.86%
Ins Owners2.88%
Ins Owner Change-0.07%
Market Cap20.83B
Revenue(TTM)14.88B
Net Income(TTM)1.02B
Analysts73.13
Price Target240.77 (3.68%)
Short Float %7.23%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend4.5
Dividend Growth(5Y)32.36%
DP38.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)7.97%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)16.39%
Revenue beat(4)3
Avg Revenue beat(4)4.59%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)16.39%
Revenue beat(8)7
Avg Revenue beat(8)2.67%
Revenue beat(12)10
Avg Revenue beat(12)2.15%
Revenue beat(16)14
Avg Revenue beat(16)2.42%
PT rev (1m)-0.09%
PT rev (3m)11.07%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)15.37%
Revenue NY rev (1m)3.19%
Revenue NY rev (3m)8.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.54 | ||
| Fwd PE | 15.51 | ||
| P/S | 1.4 | ||
| P/FCF | 235.3 | ||
| P/OCF | 18.61 | ||
| P/B | 3.77 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)14.04
EY6.05%
EPS(NY)14.97
Fwd EY6.45%
FCF(TTM)0.99
FCFY0.42%
OCF(TTM)12.48
OCFY5.37%
SpS165.95
BVpS61.56
TBVpS44.87
PEG (NY)N/A
PEG (5Y)0.54
Graham Number139.45
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 | 2.88 |
F-Score5
WACC9.22%
ROIC/WACC0.96
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)8.67%
EPS 3Y-3.66%
EPS 5Y30.43%
EPS Q2Q%-68.6%
EPS Next Y-8.05%
EPS Next 2Y3.26%
EPS Next 3Y6.03%
EPS Next 5Y8.24%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y3.02%
Revenue growth 5Y8.97%
Sales Q2Q%36.34%
Revenue Next Year29.14%
Revenue Next 2Y28.45%
Revenue Next 3Y19.46%
Revenue Next 5Y12.56%
EBIT growth 1Y-1.11%
EBIT growth 3Y-10.19%
EBIT growth 5Y27.74%
EBIT Next Year33.92%
EBIT Next 3Y21.17%
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.
Can you provide the valuation status for DICK'S SPORTING GOODS INC?
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.
Can you provide the financial health for DKS stock?
The financial health rating of DICK'S SPORTING GOODS INC (DKS) is 5 / 10.
What is the expected EPS growth for DICK'S SPORTING GOODS INC (DKS) stock?
The Earnings per Share (EPS) of DICK'S SPORTING GOODS INC (DKS) is expected to decline by -8.05% in the next year.