DICK'S SPORTING GOODS INC (DSG.DE) Stock Fundamental Analysis
FRA:DSG - Deutsche Boerse Ag - US2533931026 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to DSG. DSG was compared to 55 industry peers in the Specialty Retail industry. DSG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DSG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DSG had positive earnings in the past year.
DSG had a positive operating cash flow in the past year.
DSG had positive earnings in each of the past 5 years.
In the past 5 years DSG always reported a positive cash flow from operatings.
1.2 Ratios
DSG's Return On Assets of 10.83% is amongst the best of the industry. DSG outperforms 94.12% of its industry peers.
DSG's Return On Equity of 38.31% is amongst the best of the industry. DSG outperforms 96.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.67%, DSG belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DSG is significantly above the industry average of 9.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.83% | ||
| ROE | 38.31% | ||
| ROIC | 14.67% |
ROA(3y)11.75%
ROA(5y)9.48%
ROE(3y)45.44%
ROE(5y)34.06%
ROIC(3y)17.54%
ROIC(5y)14.48%
1.3 Margins
DSG has a better Profit Margin (8.03%) than 92.16% of its industry peers.
DSG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.09%, DSG belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
In the last couple of years the Operating Margin of DSG has grown nicely.
DSG's Gross Margin of 34.20% is in line compared to the rest of the industry. DSG outperforms 50.98% of its industry peers.
DSG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.09% | ||
| PM (TTM) | 8.03% | ||
| GM | 34.2% |
OM growth 3Y33.68%
OM growth 5Y15.64%
PM growth 3Y35.37%
PM growth 5Y17.51%
GM growth 3Y5.87%
GM growth 5Y3.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DSG is creating value.
The number of shares outstanding for DSG has been increased compared to 1 year ago.
DSG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DSG has an improved debt to assets ratio.
2.2 Solvency
DSG has an Altman-Z score of 3.69. This indicates that DSG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DSG (3.69) is better than 84.31% of its industry peers.
DSG has a debt to FCF ratio of 1.39. This is a very positive value and a sign of high solvency as it would only need 1.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.39, DSG belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that DSG is somewhat dependend on debt financing.
DSG has a Debt to Equity ratio (0.56) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for DSG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.63
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.81 indicates that DSG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.81, DSG is doing good in the industry, outperforming 72.55% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that DSG may have some problems paying its short term obligations.
DSG's Quick ratio of 0.78 is fine compared to the rest of the industry. DSG outperforms 62.75% of its industry peers.
DSG 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 | 1.81 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for DSG have decreased strongly by -12.05% in the last year.
The Earnings Per Share has been growing by 31.91% on average over the past years. This is a very strong growth
Looking at the last year, DSG shows a small growth in Revenue. The Revenue has grown by 5.95% in the last year.
Measured over the past years, DSG shows a small growth in Revenue. The Revenue has been growing by 7.56% on average per year.
EPS 1Y (TTM)-12.05%
EPS 3Y48%
EPS 5Y31.91%
EPS Q2Q%-23.37%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y12.22%
Revenue growth 5Y7.56%
Sales Q2Q%3.57%
3.2 Future
DSG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.73% yearly.
Based on estimates for the next years, DSG will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-0.79%
EPS Next 2Y1.71%
EPS Next 3Y3.24%
EPS Next 5Y5.73%
Revenue Next Year4.88%
Revenue Next 2Y3.48%
Revenue Next 3Y3.76%
Revenue Next 5Y3.57%
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
DSG is valuated reasonably with a Price/Earnings ratio of 9.19.
Based on the Price/Earnings ratio, DSG is valued cheaper than 80.39% of the companies in the same industry.
When comparing the Price/Earnings ratio of DSG to the average of the S&P500 Index (26.41), we can say DSG is valued rather cheaply.
DSG is valuated reasonably with a Price/Forward Earnings ratio of 8.65.
Based on the Price/Forward Earnings ratio, DSG is valued a bit cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DSG to the average of the S&P500 Index (33.87), we can say DSG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSG indicates a somewhat cheap valuation: DSG is cheaper than 76.47% of the companies listed in the same industry.
60.78% of the companies in the same industry are more expensive than DSG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 5.33 |
4.3 Compensation for Growth
DSG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y1.71%
EPS Next 3Y3.24%
5. Dividend
5.1 Amount
DSG has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 3.10, DSG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, DSG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of DSG is nicely growing with an annual growth rate of 24.71%!
Dividend Growth(5Y)24.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.58% of the earnings are spent on dividend by DSG. This is a low number and sustainable payout ratio.
The dividend of DSG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.58%
EPS Next 2Y1.71%
EPS Next 3Y3.24%
FRA:DSG (10/20/2023, 7:00:00 PM)
102.42
+1.44 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.71B
Analysts72.9
Price Target129.82 (26.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend2.07
Dividend Growth(5Y)24.71%
DP26.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.46%
Min EPS beat(2)-26.67%
Max EPS beat(2)5.74%
EPS beat(4)3
Avg EPS beat(4)-0.94%
Min EPS beat(4)-26.67%
Max EPS beat(4)16.42%
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)-0.51%
Min Revenue beat(2)-1.45%
Max Revenue beat(2)0.43%
Revenue beat(4)3
Avg Revenue beat(4)2.77%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)8.98%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.14%
PT rev (3m)-12.96%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-10.54%
EPS NY rev (1m)-11.87%
EPS NY rev (3m)-12.04%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.73 | ||
| P/FCF | 8.59 | ||
| P/OCF | 6.06 | ||
| P/B | 3.47 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 5.33 |
EPS(TTM)11.15
EY10.89%
EPS(NY)11.84
Fwd EY11.56%
FCF(TTM)11.92
FCFY11.64%
OCF(TTM)16.89
OCFY16.49%
SpS140.83
BVpS29.51
TBVpS26.01
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.83% | ||
| ROE | 38.31% | ||
| ROCE | 19.35% | ||
| ROIC | 14.67% | ||
| ROICexc | 20.63% | ||
| ROICexgc | 22.11% | ||
| OM | 10.09% | ||
| PM (TTM) | 8.03% | ||
| GM | 34.2% | ||
| FCFM | 8.47% |
ROA(3y)11.75%
ROA(5y)9.48%
ROE(3y)45.44%
ROE(5y)34.06%
ROIC(3y)17.54%
ROIC(5y)14.48%
ROICexc(3y)27.58%
ROICexc(5y)20.65%
ROICexgc(3y)30.14%
ROICexgc(5y)22.76%
ROCE(3y)23.15%
ROCE(5y)19.11%
ROICexcg growth 3Y49.88%
ROICexcg growth 5Y10.61%
ROICexc growth 3Y50.28%
ROICexc growth 5Y12.49%
OM growth 3Y33.68%
OM growth 5Y15.64%
PM growth 3Y35.37%
PM growth 5Y17.51%
GM growth 3Y5.87%
GM growth 5Y3.64%
F-Score6
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.39 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 120.22% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 21.78 | ||
| Cash Conversion | 92.08% | ||
| Profit Quality | 105.49% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.69 |
F-Score6
WACC8.99%
ROIC/WACC1.63
Cap/Depr(3y)87.99%
Cap/Depr(5y)85.23%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.53%
Profit Quality(3y)130.04%
Profit Quality(5y)122.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.05%
EPS 3Y48%
EPS 5Y31.91%
EPS Q2Q%-23.37%
EPS Next Y-0.79%
EPS Next 2Y1.71%
EPS Next 3Y3.24%
EPS Next 5Y5.73%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y12.22%
Revenue growth 5Y7.56%
Sales Q2Q%3.57%
Revenue Next Year4.88%
Revenue Next 2Y3.48%
Revenue Next 3Y3.76%
Revenue Next 5Y3.57%
EBIT growth 1Y-26.03%
EBIT growth 3Y50.02%
EBIT growth 5Y24.39%
EBIT Next Year10.6%
EBIT Next 3Y6.42%
EBIT Next 5Y2.44%
FCF growth 1Y-24.17%
FCF growth 3Y44.26%
FCF growth 5Y15.65%
OCF growth 1Y-11.32%
OCF growth 3Y31.59%
OCF growth 5Y4.32%