Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $14.77B
• Dividend Yield: 2.44%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.17
• Revenue Growth: 3.53%
• EPS Growth: 13.86%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): 14.05
• Shares Outstanding: 56,285,053
• 10 Day Avg. Volume: 2,193,135
• 30 Day Avg. Volume: 1,947,576
• PEG Ratio: 0.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.19
• Price to Cash Flow (P/CF): 73.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $240.89
• Price Target Upside: 30.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

Dick's Sporting Goods presents a robust financial profile with strong revenue growth and healthy profitability margins. Strategic investments and market share expansion were key highlights from the recent earnings call, supporting the company's future growth potential. However, technical analysis indicates some caution with the stock trading below key moving averages, suggesting potential consolidation. The valuation is balanced, with a reasonable P/E ratio and attractive dividend yield, contributing to a solid overall stock score.

Positive Factors

Earnings

4Q EPS of $3.62 beat consensus $3.50 driven by much stronger comps of +6.4% (vs consensus +2.8%) and stronger gross margin (+40bps vs consensus flat).

Market Share

4Q comps of +6.4% were very impressive and demonstrate DKS’ strong positioning as a market share winner in the sporting goods category and clear destination for sought-after brands.

Omnichannel Strategy

Strategic investments and dominant omnichannel business expected to offset expense pressures.

Negative Factors

Capital Expenditure

With Capex ramping to $1BN, DKS is spending money to grow, which likely limits margin upside (even if comps come in better than plan).

Earnings Guidance

The high end of EPS guidance is 2.9% below the consensus estimate.

SG&A Expenses

Lower earnings estimate due to sales, general, and administrative expenses outweighing gross margin improvements.

Dick's Sporting Goods Business Overview & Revenue Model

Company Description

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. The company provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. It also owns and operates Sporting Goods, Golf Galaxy, Field & Stream, Public Lands, Going Going Gone!, and other specialty concept stores; and DICK'S House of Sports and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile application for video streaming, scorekeeping, scheduling, and communications. The company sells its product through e-commerce websites and mobile applications. As of January 29, 2022, it operated 730 DICK'S Sporting Goods stores. 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 incorporated in 1948 and is headquartered in Coraopolis, Pennsylvania.

How the Company Makes Money

Dick's Sporting Goods generates revenue primarily through the sale of sporting goods and related products in its retail stores and online platform. The company's primary revenue streams include the sale of branded apparel, footwear, and equipment from well-known brands, as well as its own private-label products. Dick's leverages strategic partnerships with major brands to offer exclusive products and enhanced customer experiences. Additionally, the company benefits from its loyalty program, which encourages repeat purchases and customer retention. Seasonal sales, promotional events, and a strong e-commerce presence also contribute significantly to its overall revenue.

Dick's Sporting Goods Financial Statement Overview

Summary

Dick's Sporting Goods demonstrates strong financial performance with consistent revenue growth, robust profitability margins, and efficient cash flow management. The company's moderate leverage and solid return on equity are positive indicators, although careful monitoring of free cash flow conversion and leverage ratios is advised.

Income Statement

Dick's Sporting Goods exhibits strong profitability with robust gross and net profit margins. The company has shown a consistent revenue growth trajectory over the years, with the most recent year showing a growth rate of 3.53%. EBIT and EBITDA margins are healthy, indicating efficient operations and good earnings quality.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.40, suggesting a balanced approach to financing. The return on equity is strong at 36.44%, which is a positive indicator of profitability. The equity ratio of 30.57% points to a stable capital structure, though slightly lower equity coverage may pose a risk if market conditions worsen.

Cash Flow

Free cash flow growth has been volatile, but the company maintains a strong operating cash flow to net income ratio of 1.13, demonstrating efficient cash generation from operations. The free cash flow to net income ratio of 0.44 indicates room for improvement in converting profits into free cash flow, but overall cash flow management is solid.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
13.44B	12.98B	12.37B	12.29B	9.58B
	Gross Profit
4.83B	4.55B	4.28B	4.71B	3.05B
	EBIT
1.47B	1.28B	1.46B	2.03B	741.48M
	EBITDA
1.97B	1.73B	1.81B	2.37B	1.05B
	Net Income Common Stockholders
1.17B	1.05B	1.04B	1.52B	530.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69B	1.80B	1.92B	2.64B	1.66B
	Total Assets
10.46B	9.31B	8.99B	9.04B	7.75B
	Total Debt
4.49B	4.26B	4.21B	4.51B	3.15B
	Net Debt
2.80B	2.46B	2.28B	1.87B	1.49B
	Total Liabilities
7.26B	6.69B	6.47B	6.94B	5.41B
	Stockholders Equity
3.20B	2.62B	2.52B	2.10B	2.34B
Cash Flow		Free Cash Flow
509.27M	939.91M	557.81M	1.31B	1.33B
	Operating Cash Flow
1.31B	1.53B	921.88M	1.62B	1.55B
	Investing Cash Flow
-796.56M	-614.68M	-392.89M	-343.98M	-224.16M
	Financing Cash Flow
-626.13M	-1.04B	-1.25B	-287.72M	260.06M

Dick's Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 184.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKS, the sentiment is Negative. The current price of 184.29 is below the 20-day moving average (MA) of 194.40, below the 50-day MA of 209.77, and below the 200-day MA of 211.83, indicating a bearish trend. The MACD of -6.72 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DKS.

Dick's Sporting Goods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKS	78 Outperform	$14.77B	13.16	40.08%	2.44%	3.53%	13.86%
VIPS	78 Outperform	$6.37B	6.23	20.12%	3.30%	-5.47%	-2.19%
MELI	78 Outperform	$101.24B	52.98	51.50%	―	43.56%	91.72%
ASO	69 Neutral	$2.50B	6.50	21.14%	1.23%	-3.67%	-14.66%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
BZUN	54 Neutral	$140.79M	―	-4.63%	―	4.96%	55.95%
BGFV	39 Underperform	$19.01M	―	-32.89%	56.68%	-10.09%	-867.80%

Dick's Sporting Goods Corporate Events

Dick’s Sporting Goods Approves Long-Term Performance Awards

On March 25, 2025, Dick’s Sporting Goods approved the grant of long-term performance unit awards to its executive officers and certain employees, effective April 3, 2025. These awards aim to align executive compensation with the company’s financial performance, focusing on key initiatives and retaining senior leaders. The awards will vest on April 3, 2028, contingent on achieving specific performance goals during fiscal years 2025 and 2026, including metrics like total sales and eCommerce sales growth. The target values for these awards vary among executives, with potential payouts ranging from 0 to 200% based on performance metrics.

Dick’s Sporting Goods Announces Record Sales and Growth Plans

DICK’S Sporting Goods reported record sales for the fourth quarter and full year 2024, with a 6.4% growth in comparable sales for the quarter and a 5.2% increase for the year. The company plans to revise its method for determining comparable sales starting in fiscal 2025, which will now include Warehouse Sale stores after their 14th month of operation. Looking ahead, DICK’S expects continued growth in comparable sales and earnings, with strategic expansions planned for 2025, including new store openings and a focus on enhancing its eCommerce business. The board has also authorized a 10% increase in quarterly dividends and a new five-year share repurchase program of up to $3 billion.