Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $16.76B
• Dividend Yield: 2.08%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.36
• Revenue Growth: 2.70%
• EPS Growth: 4.58%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 4.38
• Shares Outstanding: 56,526,050
• 10 Day Avg. Volume: 2,616,418
• 30 Day Avg. Volume: 1,596,458
• 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: 1.20
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $237.87
• Price Target Upside: 7.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 79 Outperform
• Price Target: $259.00 ▲(16.65% Upside)

Dick's Sporting Goods receives a strong overall score driven by robust financial performance and positive earnings call sentiment. The company's strategic initiatives, including the acquisition of Foot Locker and expansion of specialty store concepts, bolster its market position. While technical indicators suggest some short-term caution, the stock's reasonable valuation and attractive dividend yield enhance its investment appeal.

Positive Factors

Brand Partnerships

The acquisition of Foot Locker is expected to strengthen brand partnerships and potentially support a higher EBIT margin.

E-commerce Growth

Dick's Sporting Goods' e-commerce growth continues to outpace the overall business, reflecting strong digital capabilities.

Financial Performance

The company reported adjusted earnings per share ahead of expectations, demonstrating strong financial performance.

Negative Factors

Acquisition Concerns

The pending acquisition of Foot Locker will prove to be a distraction.

EPS Guidance

Third-quarter earnings per share are projected to be lower year-over-year due to elevated preopening expenses.

Equity Financing

Foot Locker Deal - Equity Financing Could Move Consensus Estimates Lower.

Dick's Sporting Goods Business Overview & Revenue Model

Company Description

Dick's Sporting Goods (DKS) is a leading omnichannel retailer in the sporting goods industry, offering a wide range of products and services for various sports and outdoor activities. Founded in 1948, the company operates physical retail locations across the United States, as well as a robust online platform. Its core product offerings include athletic apparel, footwear, equipment for team sports, fitness, outdoor recreation, and active lifestyle accessories. Dick's Sporting Goods is committed to providing quality merchandise and exceptional customer service, catering to athletes and outdoor enthusiasts of all levels.

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: 222.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 222.03 is above the 20-day moving average (MA) of 220.41, above the 50-day MA of 213.48, and above the 200-day MA of 206.66, indicating a bullish trend. The MACD of 1.12 indicates Positive momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 30.14 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	79 Outperform	$16.76B	14.61	37.37%	2.08%	2.70%	4.58%
CHWY	72 Outperform	$16.28B	45.64	76.24%	―	7.64%	369.79%
ASO	72 Outperform	$3.29B	9.28	18.42%	0.96%	-2.20%	-17.95%
BBY	70 Outperform	$15.74B	18.20	30.21%	4.91%	-3.23%	-28.11%
BBWI	65 Neutral	$6.09B	8.79	-52.83%	2.51%	-0.18%	-18.95%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
SPWH	48 Neutral	$115.34M	―	-15.67%	―	-4.92%	-13.73%

Dick's Sporting Goods Corporate Events

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.

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.