NYSE:DKS

Stock Analysis Report

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DICK'S Sporting Goods

Market Cap

US$8.9b

Last Updated

2021/06/12 11:43 UTC

Data Sources

Company Financials +

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

Outstanding track record with excellent balance sheet and pays a dividend.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DKS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

DKS

0.7%

US Specialty Retail

0.7%

US Market


1 Year Return

154.1%

DKS

76.2%

US Specialty Retail

44.2%

US Market

Return vs Industry: DKS exceeded the US Specialty Retail industry which returned 76.2% over the past year.

Return vs Market: DKS exceeded the US Market which returned 44.2% over the past year.


Shareholder returns

DKSIndustryMarket
7 Day2.8%0.7%0.7%
30 Day17.8%4.1%5.6%
90 Day32.4%2.0%5.0%
1 Year161.2%154.1%77.3%76.2%46.5%44.2%
3 Year187.9%164.0%85.6%78.7%60.2%50.3%
5 Year178.7%146.0%122.6%107.2%128.1%102.6%

Long-Term 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?

8.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DKS ($100.16) is trading above our estimate of fair value ($82.56)

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 (8.2x) compared to the US Specialty Retail industry average (15x).

PE vs Market: DKS is good value based on its PE Ratio (8.2x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: DKS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DKS is good value based on its PB Ratio (3.3x) compared to the US Specialty Retail industry average (3.4x).


Future Growth

How is DICK'S Sporting Goods forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DKS's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: DKS's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: DKS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DKS's revenue (1.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: DKS's revenue (1.3% 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 (24.9%)


Past Performance

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

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DKS has high quality earnings.

Growing Profit Margin: DKS's current net profit margins (9.3%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: DKS's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: DKS's earnings growth over the past year (948.8%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: DKS earnings growth over the past year (948.8%) exceeded the Specialty Retail industry 122.1%.


Return on Equity

High ROE: DKS's Return on Equity (39.8%) is considered high.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: DKS's short term assets ($4.0B) exceed its short term liabilities ($2.6B).

Long Term Liabilities: DKS's short term assets ($4.0B) exceed its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: DKS's debt to equity ratio (16.4%) is considered satisfactory.

Reducing Debt: DKS's debt to equity ratio has increased from 9% to 16.4% over the past 5 years.

Debt Coverage: DKS's debt is well covered by operating cash flow (520.2%).

Interest Coverage: DKS's interest payments on its debt are well covered by EBIT (28.3x coverage).


Balance Sheet


Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DKS's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: DKS's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.35%).


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 low payout ratio (10.6%), DKS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DKS's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Lauren Hobart (52 yo)

0.33

Tenure

US$4,773,112

Compensation

Ms. Lauren R. Hobart has been the President of Dick's Sporting Goods Inc. since May 11, 2017 and has been its Chief Executive Officer since February 1, 2021 and also serves as its Director since January 20...


CEO Compensation Analysis

Compensation vs Market: Lauren's total compensation ($USD4.77M) is about average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Lauren's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DKS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: DKS's board of directors are considered experienced (5.3 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$8.941b
  • Shares outstanding: 89.27m
  • Website: https://www.dickssportinggoods.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/12 11:43
End of Day Share Price2021/06/11 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.