Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $19.66B
• Dividend Yield: 2.06%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.34
• Revenue Growth: 2.70%
• EPS Growth: 4.58%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 4.38
• Shares Outstanding: 66,105,690
• 10 Day Avg. Volume: 1,646,329
• 30 Day Avg. Volume: 2,004,145
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $246.76
• Price Target Upside: 7.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 82 Outperform
• Price Target: $257.00 ▲(11.62% Upside)

Dick's Sporting Goods receives a strong overall score of 82, driven by robust financial performance and a positive earnings call sentiment. The strategic acquisition of Foot Locker and effective leverage management further bolster its position. While technical indicators suggest moderate bullish momentum, valuation metrics indicate a fair market price, supporting a positive investment outlook.

Positive Factors

Strategic Acquisition

The acquisition of Foot Locker positions DICK'S as a global leader in sports retail, expanding its operational footprint and enhancing market reach, which is expected to yield significant cost synergies and boost earnings per share in Fiscal Year 2026.

Omnichannel Strategy

The successful omnichannel strategy, with e-commerce growing faster than the company overall, strengthens DICK'S market position by integrating online and physical retail, enhancing customer experience and driving long-term growth.

Cash Generation

Strong cash generation capabilities provide DICK'S with the financial flexibility to invest in growth opportunities, manage debt effectively, and return value to shareholders, supporting long-term business sustainability.

Negative Factors

SG&A Expense Deleverage

Rising SG&A expenses, leading to deleverage, could pressure operational margins and profitability if not managed effectively, potentially impacting long-term financial performance.

Inventory Levels

Higher inventory levels pose a risk of overstocking, which could lead to markdowns and reduced profitability if demand does not meet expectations, affecting long-term financial health.

Tariff Impact Concerns

Potential tariff impacts introduce uncertainty in pricing and promotion strategies, which could affect cost structures and margins, challenging long-term operational stability.

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. Key revenue streams include merchandise sales from sporting apparel, footwear, fitness equipment, and outdoor gear. The company also benefits from private label brands, which typically offer higher margins than national brands. Additionally, Dick's Sporting Goods has developed partnerships with various sports brands to create exclusive products, enhancing their product offerings and attracting more customers. Seasonal promotions, loyalty programs, and a strong e-commerce presence further contribute to the company's revenue by driving customer engagement and repeat purchases.

Dick's Sporting Goods Financial Statement Overview

Summary

Dick's Sporting Goods demonstrates strong financial health with robust revenue growth and profitability. The company has effectively managed its leverage and continues to generate significant cash flow. Minor concerns exist regarding operational margins and cash flow ratios, but the overall financial position remains solid and well-managed.

Income Statement

Dick's Sporting Goods demonstrates strong revenue growth with a TTM increase of 1.27% and consistent gross profit margins around 36%. The net profit margin is healthy at 8.52%, indicating efficient cost management. However, the EBIT margin has slightly decreased from previous periods, suggesting potential operational cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.37 from higher levels in previous years, indicating better leverage management. Return on equity remains robust at 37.05%, reflecting strong profitability relative to shareholder equity. However, the equity ratio is moderate, suggesting a balanced but cautious approach to asset financing.

Cash Flow

Free cash flow growth is impressive at 33.41% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is stable, reflecting consistent cash conversion efficiency. However, the free cash flow to net income ratio has decreased slightly, which could indicate increased capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.77B	13.44B	12.98B	12.37B	12.29B	9.58B
Gross Profit	4.97B	4.83B	4.53B	4.28B	4.71B	3.05B
EBITDA	2.02B	1.97B	1.77B	1.84B	2.37B	1.09B
Net Income	1.17B	1.17B	1.05B	1.04B	1.52B	530.25M
Balance Sheet
Total Assets	10.69B	10.46B	9.31B	8.99B	9.04B	7.75B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.69B	1.80B	1.92B	2.64B	1.66B
Total Debt	4.61B	4.49B	4.26B	4.21B	4.51B	3.15B
Total Liabilities	7.34B	7.26B	6.69B	6.47B	6.94B	5.41B
Stockholders Equity	3.36B	3.20B	2.62B	2.52B	2.10B	2.34B
Cash Flow
Free Cash Flow	464.79M	509.27M	939.91M	557.81M	1.31B	1.33B
Operating Cash Flow	1.42B	1.31B	1.53B	921.88M	1.62B	1.55B
Investing Cash Flow	-1.08B	-796.56M	-614.68M	-392.89M	-343.98M	-224.16M
Financing Cash Flow	-803.69M	-626.13M	-1.04B	-1.25B	-287.72M	260.06M

Dick's Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 230.24 is above the 20-day moving average (MA) of 221.32, above the 50-day MA of 218.11, and above the 200-day MA of 207.15, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 59.79 is Neutral, 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
DKS	82 Outperform	$19.66B	15.30	37.37%	2.06%	2.70%	4.58%
ASO	72 Outperform	3.21B	8.95	17.87%	1.04%	-2.20%	-17.95%
BBY	71 Outperform	15.58B	20.12	28.65%	5.11%	-2.21%	-37.30%
CHWY	68 Neutral	15.51B	105.53	38.76%	―	9.04%	-56.79%
BBWI	63 Neutral	5.52B	7.90	-47.03%	2.99%	-0.18%	-18.95%
SPWH	52 Neutral	117.98M	-3.13	-17.92%	―	-2.92%	-8.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Dick's Sporting Goods Corporate Events

Dick’s Sporting Goods Completes Acquisition of Foot Locker

On September 8, 2025, DICK’S Sporting Goods completed its acquisition of Foot Locker, positioning itself as a global leader in the sports retail industry. This merger expands DICK’S operational footprint to over 3,200 stores across 20 countries, enhancing its market reach and brand partnerships. The transaction is expected to yield significant cost synergies and boost earnings per share in Fiscal Year 2026. A new leadership team has been appointed to drive growth and turnaround strategies for Foot Locker, with Ann Freeman leading North America operations.

Dick’s Sporting Goods Completes Acquisition of Foot Locker

On June 20, 2025, DICK’S Sporting Goods finalized the necessary amendments to acquire Foot Locker, Inc., making it a wholly owned subsidiary. This strategic merger, supported by a reduced $1.75 billion bridge loan facility, positions DICK’S as a stronger player in the sporting goods market, with the merger expected to be accounted for as a business combination under U.S. GAAP.

DICK’S Sporting Goods Nears Foot Locker Acquisition Completion

On September 2, 2025, DICK’S Sporting Goods and Foot Locker announced the preliminary results of shareholder elections concerning the form of consideration for Foot Locker’s acquisition by DICK’S. The majority of Foot Locker shareholders, about 92.6%, opted for stock consideration, while 1.2% chose cash. The merger is expected to finalize on September 8, 2025, pending customary conditions, potentially impacting the sporting goods retail landscape significantly.

Dick’s Sporting Goods Announces Quarterly Dividend

On August 27, 2025, Dick’s Sporting Goods announced a quarterly dividend of $1.2125 per share, payable on September 26, 2025. The company reported record second-quarter sales with a 5% growth in comparable sales, leading to a raised full-year 2025 guidance for sales growth and earnings per share. The company also highlighted its strategic momentum and successful execution of long-term strategies, including the anticipated closure of the Foot Locker acquisition on September 8.

DICK’S Sporting Goods Awaits Merger with Foot Locker

On August 26, 2025, DICK’S Sporting Goods and Foot Locker announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for DICK’S acquisition of Foot Locker, with the merger expected to close on September 8, 2025. Foot Locker shareholders have until August 29, 2025, to elect their preferred form of merger consideration, either cash or shares of DICK’S Sporting Goods, with specific deadlines for participants in certain Foot Locker plans.

Dick’s Sporting Goods Pauses Merger for FTC Review

On May 15, 2025, Dick’s Sporting Goods entered into a Merger Agreement with Foot Locker, planning to acquire the company. On July 23, 2025, Dick’s Sporting Goods withdrew its pre-merger notification to allow the Federal Trade Commission more time for antitrust review, with plans to resubmit the notification on July 25, 2025. This move is a standard procedure in merger transactions to ensure compliance with regulatory requirements. The merger is expected to be completed in the second half of 2025, pending regulatory approvals and shareholder agreement.

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.

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.