NYSE:DKS

Stock Analysis Report

DICK'S Sporting Goods

Executive Summary

DICK'S Sporting Goods, Inc. operates as a sporting goods retailer primarily in the eastern United States.


Snowflake Analysis

Good value with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.5%

DKS

-6.6%

US Specialty Retail

-7.6%

US Market


1 Year Return

-0.5%

DKS

9.8%

US Specialty Retail

10.2%

US Market

Return vs Industry: DKS underperformed the US Specialty Retail industry which returned 9.8% over the past year.

Return vs Market: DKS underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

DKSIndustryMarket
7 Day-10.5%-6.6%-7.6%
30 Day-15.9%-3.5%-4.5%
90 Day-15.2%-3.0%-0.6%
1 Year2.4%-0.5%11.4%9.8%12.5%10.2%
3 Year-18.0%-23.8%34.5%28.0%37.1%28.3%
5 Year-23.9%-31.0%41.3%29.8%60.8%43.2%

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?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DKS ($38.87) is trading below our estimate of fair value ($56.85)

Significantly Below Fair Value: DKS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DKS is good value based on its PE Ratio (10.6x) compared to the Specialty Retail industry average (14.9x).

PE vs Market: DKS is good value based on its PE Ratio (10.6x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: DKS is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: DKS is overvalued based on its PB Ratio (1.9x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is DICK'S Sporting Goods forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DKS's forecast earnings growth (1.8% per year) is above the savings rate (1.7%).

Earnings vs Market: DKS's earnings (1.8% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: DKS's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DKS's revenue (2.3% 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 (22.7%)


Next Steps

Past Performance

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

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DKS has high quality earnings.

Growing Profit Margin: DKS's current net profit margins (3.8%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: DKS's earnings have declined by -1.4% 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 (-0.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (7.9%).


Return on Equity

High ROE: DKS's Return on Equity (19.3%) 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 ($2.9B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: DKS's short term assets ($2.9B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: DKS's debt to equity ratio (42.1%) is considered high.

Reducing Debt: DKS's debt to equity ratio has increased from 16.8% to 42.1% over the past 5 years.

Debt Coverage: DKS's debt is well covered by operating cash flow (47.2%).

Interest Coverage: DKS's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet

Inventory Level: DKS has a high level of physical assets or inventory.

Debt Coverage by Assets: DKS's debt is covered by short term assets (assets are 4x debt).


Next Steps

Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DKS's dividend (2.83%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: DKS's dividend (2.83%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: DKS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DKS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.6%), 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 (32% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Ed Stack (64yo)

36.1yrs

Tenure

US$9,083,405

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 ($USD9.08M) is above average for companies of similar size in the US market ($USD4.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Stack
Chairman & CEO36.1yrsUS$9.08m21.49% $734.2m
Lauren Hobart
President & Director2.1yrsUS$3.56m0.14% $4.9m
Lee Belitsky
Executive VP & CFO3.4yrsUS$2.93m0.18% $6.2m
Navdeep Gupta
Chief Accounting Officer & Senior VP of Finance2.3yrsno data0.033% $1.1m
John Hayes
Senior VP5.1yrsUS$1.26m0.035% $1.2m
Ed Plummer
Chief Marketing Officer0.8yrsno datano data
Donald Germano
Executive Vice President of Stores9.8yrsno data0.062% $2.1m
George Giacobbe
Senior Vice President of Supply Chain6.1yrsno datano data
Daniel Ostrowski
Senior Vice President of Store Environment6.3yrsno datano data
Dave Barnes
Senior Vice President of Real Estate3yrsno datano data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: DKS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Stack
Chairman & CEO36.1yrsUS$9.08m21.49% $734.2m
Lauren Hobart
President & Director2.1yrsUS$3.56m0.14% $4.9m
Mark Barrenechea
Independent Director6yrsUS$267.52k0.021% $714.3k
Larry Stone
Independent Director12.7yrsUS$284.77k0.15% $5.0m
Emanuel Chirico
Independent Director16.2yrsUS$261.52k0.13% $4.3m
Vincent Byrd
Independent Director7.1yrsUS$273.52k0.030% $1.0m
Jacqualyn Fouse
Independent Director9.4yrsUS$287.27k0.052% $1.8m
William Colombo
Vice Chairman12yrsUS$260.77k0.39% $13.3m
Lawrence Schorr
Lead Director3.9yrsUS$310.02k0.089% $3.0m
Allen Weiss
Independent Director8.3yrsUS$268.27k0.026% $894.7k

8.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: DKS's board of directors are considered experienced (8.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$3.416b
  • Shares outstanding: 87.89m
  • 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. operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce Websites, as well as DICK’S Team Sports HQ, a youth sports digital platform that offers free league management services, mobile apps, free league management services, communications and live scorekeeping, custom uniforms and fan wear, and access to donations and sponsorships. As of August 3, 2019, it operated 727 DICK'S Sporting Goods stores in 47 states, 95 Golf Galaxy stores in 32 states, and 35 Field & Stream stores in 16 states. The company was formerly known as Dick'S Clothing and Sporting Goods, Inc. and changed its name to DICK'S Sporting Goods, Inc. in April 1999. DICK'S Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:09
End of Day Share Price2020/02/26 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.