NYSE:DKS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

DICK'S Sporting Goods

Executive Summary

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has DICK'S Sporting Goods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DKS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

DKS

-6.3%

US Specialty Retail

-4.1%

US Market


1 Year Return

45.4%

DKS

15.3%

US Specialty Retail

12.0%

US Market

Return vs Industry: DKS exceeded the US Specialty Retail industry which returned 15.3% over the past year.

Return vs Market: DKS exceeded the US Market which returned 12% over the past year.


Shareholder returns

DKSIndustryMarket
7 Day-5.7%-6.3%-4.1%
30 Day-2.9%-2.5%-0.2%
90 Day23.1%6.1%2.8%
1 Year50.9%45.4%16.4%15.3%14.6%12.0%
3 Year151.5%129.5%77.4%69.6%35.8%26.8%
5 Year43.7%27.3%56.1%44.0%75.2%55.6%

Price Volatility Vs. Market

How volatile is DICK'S Sporting Goods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DICK'S Sporting Goods undervalued compared to its fair value and its price relative to the market?

18.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DKS ($56.18) is trading above our estimate of fair value ($38.18)

Significantly Below Fair Value: DKS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DKS is good value based on its PE Ratio (18.1x) compared to the US Specialty Retail industry average (20x).

PE vs Market: DKS's PE Ratio (18.1x) is in line with the US market.


Price to Earnings Growth Ratio

PEG Ratio: DKS is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: DKS is overvalued based on its PB Ratio (2.4x) compared to the US Specialty Retail industry average (1.8x).


Next Steps

Future Growth

How is DICK'S Sporting Goods forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DKS's forecast earnings growth (3.9% per year) is above the savings rate (2.2%).

Earnings vs Market: DKS's earnings (3.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: DKS's earnings are forecast to grow, but not significantly.

Revenue vs Market: DKS's revenue (2.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: DKS's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DKS's Return on Equity is forecast to be high in 3 years time (20.7%)


Next Steps

Past Performance

How has DICK'S Sporting Goods performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DKS has high quality earnings.

Growing Profit Margin: DKS's current net profit margins (3%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: DKS's earnings have declined by 5.6% per year over the past 5 years.

Accelerating Growth: DKS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DKS had negative earnings growth (-16%) over the past year, making it difficult to compare to the Specialty Retail industry average (6%).


Return on Equity

High ROE: DKS's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is DICK'S Sporting Goods's financial position?


Financial Position Analysis

Short Term Liabilities: DKS's short term assets ($3.1B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: DKS's short term assets ($3.1B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: DKS's debt to equity ratio (21%) is considered satisfactory.

Reducing Debt: DKS's debt to equity ratio has increased from 0.7% to 21% over the past 5 years.

Debt Coverage: DKS's debt is well covered by operating cash flow (323.4%).

Interest Coverage: DKS's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet


Next Steps

Dividend

What is DICK'S Sporting Goods's current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DKS's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: DKS's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: DKS's dividend payments have been volatile in the past 10 years.

Growing Dividend: DKS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), DKS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DKS's dividends in 3 years are forecast to be well covered by earnings (33.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Ed Stack (65 yo)

36.75yrs

Tenure

US$15,048,162

Compensation

Mr. Edward W. Stack, also known as Ed, has been Chairman and Chief Executive Officer of Dick's Sporting Goods, Inc. since 1984. Mr. Stack serves as the Chairman and Chief Executive Officer of Galyan's Trad ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD15.05M) is above average for companies of similar size in the US market ($USD7.41M).

Compensation vs Earnings: Ed's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Stack
Chairman & CEO36.75yrsUS$15.05m15.53%
$ 777.6m
Lauren Hobart
President & Director2.75yrsUS$6.77m0.19%
$ 9.4m
Lee Belitsky
Executive VP & CFO4.08yrsUS$4.73m0.21%
$ 10.4m
Navdeep Gupta
Chief Accounting Officer & Senior VP of Finance2.92yrsUS$2.16m0.098%
$ 4.9m
Donald Germano
Executive Vice President of Stores10.5yrsUS$4.27m0.095%
$ 4.7m
Vladimir Rak
Executive VP & CTO0.50yrno data0.029%
$ 1.4m
Nathaniel Gilch
Senior Director of Investor Relationsno datano datano data
John Hayes
Senior VP5.75yrsUS$1.26m0.037%
$ 1.9m
Peter Land
Senior VP & Chief Communications and Sustainability Officer0.25yrno datano data
Ed Plummer
Senior VP & Chief Marketing Officer1.42yrsno datano data
Julie Lodge-Jarrett
Senior Vice President & Chief People Officer0.50yrno data0.021%
$ 1.1m
George Giacobbe
Senior Vice President of Supply Chain6.75yrsno datano data

3.4yrs

Average Tenure

56.5yo

Average Age

Experienced Management: DKS's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Stack
Chairman & CEO36.75yrsUS$15.05m15.53%
$ 777.6m
Lauren Hobart
President & Director2.75yrsUS$6.77m0.19%
$ 9.4m
Mark Barrenechea
Independent Director6.58yrsUS$250.01k0.031%
$ 1.6m
Larry Stone
Independent Director13.33yrsUS$277.51k0.15%
$ 7.7m
Emanuel Chirico
Independent Director16.83yrsUS$250.01k0.14%
$ 6.8m
Sandeep Mathrani
Director0.083yrno data0.0031%
$ 156.7k
William Colombo
Independent Vice Chairman12.58yrsUS$252.51k0.40%
$ 19.8m
Lawrence Schorr
Lead Independent Director4.58yrsUS$295.01k0.099%
$ 4.9m
Anne Fink
Independent Director0.92yrUS$182.49k0.015%
$ 758.0k
Desiree Ralls-Morrison
Director0.083yrno data0.0031%
$ 156.7k
Larry Fitzgerald
Director0.25yrno data0.0047%
$ 236.3k

4.6yrs

Average Tenure

60yo

Average Age

Experienced Board: DKS's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DKS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DICK'S Sporting Goods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DICK'S Sporting Goods, Inc.
  • Ticker: DKS
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$5.006b
  • Shares outstanding: 89.11m
  • Website: https://www.dickssportinggoods.com

Number of Employees


Location

  • DICK'S Sporting Goods, Inc.
  • 345 Court Street
  • Coraopolis
  • Pennsylvania
  • 15108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DKSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2002
DSGDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2002

Biography

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:15
End of Day Share Price2020/10/29 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.