Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $14.76B
• Dividend Yield: 2.63%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.11
• Revenue Growth: 3.33%
• EPS Growth: 15.47%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 3.37
• Shares Outstanding: 56,476,480
• 10 Day Avg. Volume: 1,266,402
• 30 Day Avg. Volume: 1,912,627
• 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: 0.47
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 0.90
• 1Y Price Target: $209.35
• Price Target Upside: 18.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $205.00 ▲(15.99%Upside)

Dick's Sporting Goods is well-positioned with strong financial performance, attractive valuation, and strategic growth initiatives. The acquisition of Foot Locker and credit facility bolster future prospects, despite some technical and macroeconomic challenges.

Positive Factors

Acquisition benefits

The acquisition of Foot Locker is expected to strengthen brand partnerships and enhance omnichannel capabilities.

Earnings

The acquisition of Foot Locker is expected to be accretive to future earnings per share, suggesting a positive financial impact.

Financial performance

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

Negative Factors

Acquisition challenges

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

Acquisition complexity

The FL acquisition introduces a layer of complexity.

Investor sentiment

The stock is net down near the entire value of the proposed FL acquisition since the announcement, with investors skeptical of hurting the momentum in the core business.

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
	EBIT
1.51B	1.47B	1.28B	1.46B	2.03B	741.48M
	EBITDA
1.87B	1.97B	1.73B	1.81B	2.37B	1.05B
	Net Income Common Stockholders
1.15B	1.17B	1.05B	1.04B	1.52B	530.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.69B	1.80B	1.92B	2.64B	1.66B
	Total Assets
10.43B	10.46B	9.31B	8.99B	9.04B	7.75B
	Total Debt
4.57B	4.49B	4.26B	4.21B	4.51B	3.15B
	Net Debt
3.53B	2.80B	2.46B	2.28B	1.87B	1.49B
	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: Negative
• Last Price: 176.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 176.74 is below the 20-day moving average (MA) of 177.84, below the 50-day MA of 183.49, and below the 200-day MA of 205.68, indicating a bearish trend. The MACD of -1.65 indicates Negative momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.66 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
MELI	80 Outperform	$121.01B	58.27	49.11%	―	41.92%	81.11%
VIPS	78 Outperform	$7.70B	7.71	19.00%	3.21%	-5.90%	-11.16%
DKS	77 Outperform	$14.76B	12.63	40.22%	2.63%	3.33%	15.47%
ASO	75 Outperform	$3.01B	8.33	20.14%	1.13%	-3.57%	-17.43%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
BGFV	52 Neutral	$27.88M	―	-39.57%	39.58%	-8.85%	-397.36%
BZUN	51 Neutral	$174.42M	―	-4.61%	―	6.05%	29.58%

Dick's Sporting Goods Corporate Events

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.

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.