Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $16.53B
• Dividend Yield: 2.35%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.23
• Revenue Growth: 3.33%
• EPS Growth: 15.47%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Specialty Retail
• EPS (TTM): 3.37
• Shares Outstanding: 56,476,480
• 10 Day Avg. Volume: 2,020,520
• 30 Day Avg. Volume: 1,735,612
• PEG Ratio: 3.27
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.68
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 0.90
• 1Y Price Target: $203.27
• Price Target Upside: -1.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 78 Outperform
• Price Target: $211.00 ▲(2.21%Upside)

Dick's Sporting Goods' strong financial performance and strategic acquisitions, particularly the Foot Locker deal, bolster its market position and growth prospects. The stock is undervalued with an attractive dividend yield. However, technical analysis indicates caution due to mixed signals, and macroeconomic challenges may pose risks.

Positive Factors

Business Performance

Strong F1Q results were driven by growth in ticket and traffic, indicating positive business performance.

Store Expansion

The expansion of House of Sport stores is expected to drive traffic and increase sales.

Vendor Partnerships

Key vendors like Nike, HOKA, and New Balance are expected to provide premium innovations, potentially boosting sales for Dick's Sporting Goods.

Negative Factors

Core Competencies

Running an athletic specialty retailer that focuses on fashion lifestyle consumers, and operates smaller boxes, many of which are in malls or in urban street locations, are not within the core competencies of Dick's Sporting.

Investment Concerns

Investor concerns exist over the financial impact of investments in House of Sport stores.

Leadership Distraction

The pending acquisition of Foot Locker will prove to be a distraction to the leadership, despite management's claims to the contrary.

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 through the sale of sporting goods and related products via its physical retail stores and online platform. Its key revenue streams include the sale of athletic apparel, footwear, and equipment for various sports and outdoor activities. The company benefits from strategic partnerships with major brands, exclusive product lines, and its own private-label products, which often carry higher margins. Additionally, Dick's Sporting Goods invests in marketing and loyalty programs to drive customer engagement and repeat purchases, further contributing to its earnings.

Dick's Sporting Goods Financial Statement Overview

Summary

Dick's Sporting Goods shows strong financial health with consistent revenue and profit growth, effective cost management, and a stable financial structure. Key strengths include a robust ROE and manageable debt. However, concerns arise from a slight decline in EBITDA margin and decreased free cash flow.

Income Statement

Dick's Sporting Goods has demonstrated strong revenue growth over the years, with a TTM revenue of $13.6 billion, reflecting a positive growth trajectory from previous years. The gross profit margin stands robustly at 36.0% TTM, showcasing effective cost management. Net profit margin of 8.5% TTM indicates healthy profitability. However, a slight decline in EBITDA margin from 14.7% to 13.7% TTM suggests rising operational costs that need monitoring.

Balance Sheet

The balance sheet of Dick's Sporting Goods reveals a solid equity position with a debt-to-equity ratio of 1.50 TTM, indicating manageable leverage levels. With a return on equity of 37.8% TTM, the company effectively generates profits from shareholders' investments. Although the equity ratio of 29.2% suggests a moderate reliance on debt, the overall financial stability remains strong.

Cash Flow

Cash flow analysis shows a decrease in free cash flow from $509 million to $348 million TTM, primarily due to increased capital expenditures. The operating cash flow to net income ratio of 1.09 TTM reflects adequate cash generation relative to earnings, but the decline in free cash flow growth rate raises concerns about future liquidity if capital expenditures persist at current levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.60B	13.44B	12.98B	12.37B	12.29B	9.58B
Gross Profit	4.90B	4.83B	4.55B	4.28B	4.71B	3.05B
EBITDA	1.87B	1.97B	1.73B	1.81B	2.37B	1.05B
Net Income	1.15B	1.17B	1.05B	1.04B	1.52B	530.25M
Balance Sheet
Total Assets	10.43B	10.46B	9.31B	8.99B	9.04B	7.75B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.69B	1.80B	1.92B	2.64B	1.66B
Total Debt	4.57B	4.49B	4.26B	4.21B	4.51B	3.15B
Total Liabilities	4.27B	7.26B	6.69B	6.47B	6.94B	5.41B
Stockholders Equity	3.05B	3.20B	2.62B	2.52B	2.10B	2.34B
Cash Flow
Free Cash Flow	348.40M	509.27M	939.91M	557.81M	1.31B	1.33B
Operating Cash Flow	1.26B	1.31B	1.53B	921.88M	1.62B	1.55B
Investing Cash Flow	-1.02B	-796.56M	-614.68M	-392.89M	-343.98M	-224.16M
Financing Cash Flow	-880.13M	-626.13M	-1.04B	-1.25B	-287.72M	260.06M

Dick's Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 206.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKS, the sentiment is Positive. The current price of 206.44 is above the 20-day moving average (MA) of 184.45, above the 50-day MA of 184.74, and above the 200-day MA of 203.96, indicating a bullish trend. The MACD of 5.22 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DKS.

Dick's Sporting Goods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	78 Outperform	$7.76B	7.84	19.00%	3.19%	-5.90%	-11.16%
DKS	78 Outperform	$16.53B	14.75	40.22%	2.35%	3.33%	15.47%
MELI	74 Outperform	$126.81B	60.81	49.11%	―	41.92%	81.11%
ASO	70 Neutral	$3.15B	8.73	20.14%	1.10%	-3.57%	-17.43%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
BGFV	51 Neutral	$32.35M	―	-39.57%	3.55%	-8.85%	-397.36%
BZUN	46 Neutral	$159.94M	―	-4.61%	―	6.05%	29.58%

Dick's Sporting Goods Corporate Events

DICK’S Sporting Goods Announces Exchange Offer Results

On June 23, 2025, DICK’S Sporting Goods announced the results of early participation in its Exchange Offer and Consent Solicitation related to its anticipated acquisition of Foot Locker, Inc. The company extended the offer to eligible holders to exchange Foot Locker’s outstanding notes for new notes issued by DICK’S, with a significant number of consents received to adopt proposed amendments to the Foot Locker Notes. The amendments eliminate many restrictive covenants and will become operative upon the closing of the acquisition or settlement of the exchange offer. This strategic move is part of DICK’S efforts to streamline operations and strengthen its market position.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Dick’s Sporting Goods Holds Annual Stockholder Meeting

On June 11, 2025, Dick’s Sporting Goods held its Annual Meeting where stockholders voted on five proposals. The stockholders elected twelve directors, approved executive compensation, ratified Deloitte & Touche LLP as the accounting firm for 2025, and approved an amendment to increase authorized shares. However, a proposal for a report on affirmative action risks was not approved.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Dick’s Sporting Goods Secures $2 Billion Credit Facility

On June 6, 2025, DICK’S Sporting Goods entered into a new $2.0 billion unsecured revolving credit facility with Wells Fargo Bank, replacing its existing credit agreement. This move aims to enhance financial flexibility and support the company’s operational needs. Additionally, DICK’S announced an exchange offer for Foot Locker’s senior notes as part of its anticipated acquisition of Foot Locker, Inc., which includes soliciting consents for amendments to the indenture governing these notes. This strategic acquisition is expected to strengthen DICK’S market position in the sporting goods industry.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Dick’s Sporting Goods Announces Quarterly Dividend

On May 27, 2025, Dick’s Sporting Goods announced a quarterly dividend of $1.2125 per share, payable on June 27, 2025. The company reported record first-quarter sales with a 4.5% increase in comparable sales and reaffirmed its 2025 outlook. Dick’s also plans to acquire Foot Locker, aiming to become a global leader in the sports retail industry. The first quarter saw the opening of new store locations and a strong earnings performance, demonstrating the company’s operational strength and strategic momentum.

The most recent analyst rating on (DKS) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Dick’s Sporting Goods Announces Merger with Foot Locker

On May 15, 2025, Dick’s Sporting Goods announced a merger agreement with Foot Locker, where Foot Locker will become a wholly owned subsidiary of Dick’s. The merger involves converting Foot Locker’s shares into cash or stock of Dick’s, with the transaction subject to various closing conditions, including shareholder approval and antitrust clearances. The merger aims to enhance Dick’s market position and operational capabilities, with potential implications for stakeholders, including changes in stock and cash considerations for Foot Locker’s shareholders.

The most recent analyst rating on (DKS) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.

Dick’s Sporting Goods to Acquire Foot Locker

On May 15, 2025, DICK’S Sporting Goods announced a definitive merger agreement to acquire Foot Locker, valued at approximately $2.4 billion in equity and $2.5 billion in enterprise value. This strategic acquisition is expected to enhance DICK’S global reach and drive significant value for stakeholders, pending regulatory and shareholder approvals, with an anticipated closing in the second half of 2025. Additionally, DICK’S reported a 4.5% growth in comparable sales for the first quarter of 2025, reflecting a strong start to the year and positioning the company favorably for the proposed acquisition.

The most recent analyst rating on (DKS) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on Dick’s Sporting Goods stock, see the DKS Stock Forecast page.