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 is not valued too expensively and it also shows a decent growth rate.
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.
DKS had positive earnings in each of the past 5 years.
In the past 5 years DKS always reported a positive cash flow from operatings.
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 88.89% of its industry peers.
DKS has a better Return On Invested Capital (15.15%) than 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 3 year average ROIC (19.29%) for DKS is well above the current ROIC(15.15%). The reason for the recent decline needs to be investigated.
| 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
DKS has a better Profit Margin (8.06%) than 84.92% of its industry peers.
In the last couple of years the Profit Margin of DKS has grown nicely.
DKS's Operating Margin of 9.89% is amongst the best of the industry. DKS outperforms 82.54% of its industry peers.
DKS's Operating Margin has improved in the last couple of years.
DKS has a Gross Margin (34.92%) 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 | 9.89% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DKS is creating 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
DKS has an Altman-Z score of 4.47. This indicates that DKS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.47, DKS belongs to the top of the industry, outperforming 89.68% of the companies in the same industry.
The Debt to FCF ratio of DKS is 1.58, which is an excellent value as it means it would take DKS, only 1.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.58, DKS is doing good in 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.
Looking at the Debt to Equity ratio, with a value of 0.57, DKS is in line with its industry, outperforming 47.62% of the companies in the same 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 | 4.47 |
ROIC/WACC1.7
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.78 indicates that DKS should not have too much problems paying its short term obligations.
The Current ratio of DKS (1.78) is better than 69.05% of its industry peers.
DKS has a Quick Ratio of 1.78. This is a bad value and indicates that DKS is not financially healthy enough and could expect problems in meeting its short term obligations.
DKS has a Quick ratio (0.74) which is in line with its industry peers.
DKS does not score too well on the current and quick ratio evaluation. However, as it has 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
DKS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.13%.
Measured over the past years, DKS shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.79% on average per year.
DKS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.98%.
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
The Earnings Per Share is expected to grow by 4.15% on average over the next years.
Based on estimates for the next years, DKS will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y3.69%
EPS Next 2Y5.98%
EPS Next 3Y6.48%
EPS Next 5Y4.15%
Revenue Next Year2%
Revenue Next 2Y2.98%
Revenue Next 3Y3.75%
Revenue Next 5Y2.14%
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
A Price/Earnings ratio of 16.04 indicates a correct valuation of DKS.
70.63% of the companies in the same industry are more expensive than DKS, based on the Price/Earnings ratio.
DKS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
DKS is valuated correctly with a Price/Forward Earnings ratio of 15.47.
Based on the Price/Forward Earnings ratio, DKS is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DKS to the average of the S&P500 Index (21.63), we can say DKS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
DKS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DKS is cheaper than 60.32% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DKS indicates a somewhat cheap valuation: DKS is cheaper than 65.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.18 | ||
| EV/EBITDA | 9.84 |
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)4.35
PEG (5Y)0.5
EPS Next 2Y5.98%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, 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 3.51. DKS pays more dividend than 83.33% of the companies in the same industry.
DKS's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
On average, the dividend of DKS grows each year by 36.64%, 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 recently.
Dividend Growth(5Y)36.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
33.56% 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.
DP33.56%
EPS Next 2Y5.98%
EPS Next 3Y6.48%
DICK'S SPORTING GOODS INC
NYSE:DKS (4/26/2024, 2:03:08 PM)
207.24
+3.03 (+1.48%)
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 Cap17.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 15.47 | ||
| 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)4.35
PEG (5Y)0.5
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
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y