Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $17.15B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.27
• Revenue Growth: 10.86%
• EPS Growth: -11.63%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 3.45
• Shares Outstanding: 66,398,270
• 10 Day Avg. Volume: 1,652,033
• 30 Day Avg. Volume: 1,240,128
• PEG Ratio: -0.67
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 34.87
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 15.59
• 1Y Price Target: $247.25
• Price Target Upside: 31.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 14.35
• Revenue Forecast (FY): $22.26B

• Rating: 64 Neutral
• Price Target: $209.00 ▲(11.30% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is supported primarily by solid underlying fundamentals and a constructive earnings outlook with clear growth/turnaround initiatives, but it is held back by weak technical momentum and a demanding valuation. Leverage and uneven recent cash conversion add further caution.

Positive Factors

Durable core profitability and margins

DICK’S Business has sustained high retail profitability with gross margins in the mid-30s and non‑GAAP operating margin ~11%. Such persistent margin structure supports stable cash generation and operational resilience across cycles, enabling reinvestment in stores, digital and new concepts.

Scaling experiential store footprint

The deliberate roll‑out of House of Sport and Fieldhouse shows a strategic shift to experiential retail that differentiates store traffic and engagement. Scaling these formats can deepen customer loyalty, raise ticket and frequency over time, and make physical locations a durable competitive asset versus pure e‑commerce players.

Growing digital assets and alternative revenue

Rapid GameChanger growth and DMN monetization create recurring, higher-margin digital revenue and unique ad inventory tied to youth sports. These assets diversify revenue beyond merchandise cycles, strengthen omnichannel engagement, and can compound customer lifetime value over multiple years.

Negative Factors

Elevated leverage and financial risk

Debt levels remain material for a retailer, keeping financial flexibility constrained. Elevated leverage magnifies downturns, raises interest burden risk as rates change, and limits capacity for opportunistic investments or share returns, making capital allocation more sensitive to cash generation variability.

Inconsistent free cash flow and cash conversion

Volatile FCF and weaker cash conversion indicate the company converts profits to cash unevenly, driven by working capital and investment cycles. This undermines predictability of debt paydown, capex funding, and shareholder returns, increasing execution risk over the medium term.

Foot Locker integration raises working-capital and margin pressure

The Foot Locker acquisition materially enlarged inventory and drove one‑time markdowns, pressuring consolidated margins and tying up capital. Until assortment and Fast Break rollouts sustainably lift productivity, integration-related stock and back‑half recovery timing create prolonged margin and cash conversion headwinds.

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

DKS primarily makes money by selling products to consumers through its retail stores and online channels. Its core revenue stream is merchandise sales across major categories including athletic apparel, athletic footwear, and sporting goods/equipment (e.g., fitness, team sports, golf, and outdoor). Revenue is generated from both national brands and the company’s owned/private brands; in both cases, earnings are driven by the spread between product selling prices and DKS’s cost to source, distribute, and sell inventory (i.e., retail margin), supported by merchandising, pricing, and inventory management. The company also generates revenue from sales of licensed products and from services and experiences attached to product sales where applicable (for example, sports-related services offered in or through certain store formats), but the extent and breakdown of these service revenues are not specified here. Digital commerce contributes to revenue by expanding reach beyond store trade areas and enabling fulfillment options (such as ship-to-home and pickup), which support overall sales volume. Partnerships that influence earnings typically include relationships with major athletic and outdoor brands for product supply, merchandising programs, and allocations of high-demand items; however, specific financial terms or partner-level contributions are not available here (null).

Dick's Sporting Goods Financial Statement Overview

Summary

Profitability remains solid with durable gross margins and historically healthy net margins, but recent trends show margin normalization and weaker TTM profitability. Balance sheet leverage remains meaningful for a retailer, and free cash flow has been volatile with weaker recent cash conversion.

Income Statement

Annual results show solid profitability for a specialty retailer, with gross margin holding in the mid-30% range and net margin generally healthy (about 5%–12% across 2021–2025). Revenue growth has been positive but decelerating versus the 2022 surge, and the profitability peak in 2022 has normalized in 2023–2025 (lower operating and net margins). TTM (Trailing-Twelve-Months) margins appear weaker than the recent annual run-rate, which is a caution flag for near-term earnings power.

Balance Sheet

Leverage is consistently meaningful, with debt running around ~1.3x–2.1x equity (improving from the 2022 high but still elevated). Returns on equity are strong across the period, reflecting good earnings generation, but also magnified by leverage. Overall asset base has grown, and equity has improved since 2022, yet the balance sheet still carries above-average financial risk for a retailer due to the debt load.

Cash Flow

Cash generation is positive, but consistency is mixed: free cash flow swung materially year-to-year (strong in 2021–2022, down sharply in 2023, rebounded in 2024, and softer again in 2025). Cash conversion has weakened recently—free cash flow as a share of net income declined meaningfully in 2025 and is low in TTM (Trailing-Twelve-Months), suggesting working-capital/investment demands or less efficient conversion of profits into cash. Operating cash flow remains solid in absolute terms, but coverage versus earnings also looks weaker in the TTM view.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	17.22B	13.44B	12.98B	12.37B	12.29B
Gross Profit	5.67B	4.83B	4.53B	4.28B	4.71B
EBITDA	1.82B	1.97B	1.77B	1.84B	2.37B
Net Income	849.24M	1.17B	1.05B	1.04B	1.52B
Balance Sheet
Total Assets	17.41B	10.46B	9.31B	8.99B	9.04B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.69B	1.80B	1.92B	2.64B
Total Debt	7.75B	4.49B	4.26B	4.21B	4.51B
Total Liabilities	11.87B	7.26B	6.69B	6.47B	6.94B
Stockholders Equity	5.54B	3.20B	2.62B	2.52B	2.10B
Cash Flow
Free Cash Flow	481.58M	509.27M	939.91M	557.81M	1.31B
Operating Cash Flow	1.62B	1.31B	1.53B	921.88M	1.62B
Investing Cash Flow	-1.05B	-796.56M	-614.68M	-392.89M	-343.98M
Financing Cash Flow	-902.72M	-626.13M	-1.04B	-1.25B	-287.72M

Dick's Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 187.78 is below the 20-day moving average (MA) of 201.25, below the 50-day MA of 205.17, and below the 200-day MA of 209.58, indicating a bearish trend. The MACD of -4.03 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.34 is Positive, 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	64 Neutral	$17.15B	35.01	19.45%	2.33%	10.86%	-11.63%
CHWY	63 Neutral	$10.47B	57.58	55.17%	―	9.80%	-46.84%
ASO	62 Neutral	$3.33B	9.73	18.44%	1.04%	-0.65%	-10.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	56 Neutral	$4.08B	7.11	-44.22%	4.16%	-1.04%	-20.88%
BBY	51 Neutral	$13.12B	12.85	38.54%	5.46%	-0.95%	-48.28%
SPWH	44 Neutral	$52.33M	2,968.40	-17.05%	―	-1.05%	-10.28%

Dick's Sporting Goods Corporate Events

Dick’s Sporting Goods Boosts Dividend After Record Results

Dick’s Sporting Goods reported record fourth-quarter 2025 sales for the DICK’S Business and full-year comparable sales growth of 4.5%, driven by higher average ticket and transactions, with non-GAAP EPS for the DICK’S Business rising to $14.58 versus $14.05 a year earlier. On March 11, 2026, the board declared a quarterly cash dividend of $1.25 per share, while the company expanded its House of Sport and DICK’S Field House formats, integrated the Foot Locker Business over the past six months, and signaled confidence in future growth with 2026 guidance for higher sales, earnings and an increased annual dividend to $5.00 per share.

The retailer opened 16 House of Sport and 15 DICK’S Field House locations in 2025 and plans roughly 14 and 22 additional sites, respectively, in 2026 as it scales experiential concepts and its Fast Break Foot Locker initiative. Management highlighted strong holiday performance, gross margin expansion and an 11%-plus non-GAAP operating margin for the DICK’S Business in 2025, underscoring its strategy to drive comp growth and profitability while returning the Foot Locker Business to top- and bottom-line growth in 2026.

The most recent analyst rating on (DKS) stock is a Hold with a $228.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.