Dick's Sporting Goods (DKS) AI Stock Analysis

• Market Cap: $18.71B
• Dividend Yield: 2.31%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.26
• Revenue Growth: 10.86%
• EPS Growth: -11.63%
• Country: US
• Employees: 18,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 2.07
• Shares Outstanding: 66,398,270
• 10 Day Avg. Volume: 1,570,895
• 30 Day Avg. Volume: 1,611,798
• PEG Ratio: 1.20
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 37.93
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 15.11
• 1Y Price Target: $241.43
• Price Target Upside: 14.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 12.88
• Revenue Forecast (FY): $16.88B

• Rating: 71 Outperform
• Price Target: $243.00 ▲(15.68% Upside)

Dick's Sporting Goods exhibits strong revenue growth and strategic expansion, particularly with the acquisition of Foot Locker. However, challenges such as declining profit margins, cash flow pressures, and transitional issues with Foot Locker weigh on the score. The stock's valuation and dividend yield provide some support, but technical indicators suggest caution. Overall, the company is positioned for growth but must address operational and financial challenges to enhance investor confidence.

Positive Factors

Revenue Growth

The consistent increase in comparable sales indicates strong consumer demand and effective sales strategies, supporting long-term revenue growth.

Strategic Expansion

Expanding the House of Sport locations enhances market presence and diversifies revenue streams, contributing to sustained growth.

Full-Year Outlook Raised

Raising the full-year outlook reflects management's confidence in ongoing operational improvements and market conditions, supporting future performance.

Negative Factors

Declining Profit Margins

Declining profit margins indicate pressure on profitability, which could affect long-term financial health if not addressed through cost management.

Cash Flow Pressures

Significant reduction in free cash flow suggests challenges in cash generation, potentially impacting the company's ability to fund growth initiatives.

High Leverage

High leverage increases financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

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 apparel. The company operates on a retail business model, which includes direct sales from its physical stores and its e-commerce platform. Key revenue streams include sales of athletic footwear, sports apparel, equipment for sports such as basketball, soccer, and outdoor activities like camping and fishing. Additionally, Dick's Sporting Goods has partnerships with various brands, allowing them to offer exclusive products and promotions. The company also benefits from private label brands, which contribute to higher margins. Seasonal promotions, events, and loyalty programs further enhance customer engagement and drive sales, contributing significantly to overall earnings.

Dick's Sporting Goods Financial Statement Overview

Summary

Dick's Sporting Goods demonstrates strong revenue growth and effective equity utilization, but faces challenges with declining profit margins and cash flow generation. The high leverage requires careful management to mitigate financial risks. The company is well-positioned in terms of growth but needs to address profitability and cash flow concerns to sustain long-term financial health.

Income Statement

Dick's Sporting Goods shows a strong revenue growth rate of 8.06% TTM, indicating robust sales performance. However, the net profit margin has decreased to 6.86% TTM from 8.67% in the previous annual report, suggesting some pressure on profitability. The gross profit margin remains stable at 35.33% TTM, reflecting efficient cost management. Overall, the income statement reflects solid growth but with some margin compression.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.39 TTM, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity is strong at 26.99% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 31.68% TTM, suggesting a balanced capital structure. The balance sheet reflects a mix of high leverage and strong equity returns.

Cash Flow

Free cash flow has significantly declined by 69.80% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.30 TTM, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.33 TTM, showing limited free cash flow relative to net income. Overall, the cash flow statement highlights challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.88B	13.44B	12.98B	12.37B	12.29B	9.58B
Gross Profit	5.26B	4.83B	4.53B	4.28B	4.71B	3.05B
EBITDA	1.73B	1.97B	1.77B	1.84B	2.37B	1.09B
Net Income	1.02B	1.17B	1.05B	1.04B	1.52B	530.25M
Balance Sheet
Total Assets	17.43B	10.46B	9.31B	8.99B	9.04B	7.75B
Cash, Cash Equivalents and Short-Term Investments	821.33M	1.69B	1.80B	1.92B	2.64B	1.66B
Total Debt	7.70B	4.49B	4.26B	4.21B	4.51B	3.15B
Total Liabilities	11.91B	7.26B	6.69B	6.47B	6.94B	5.41B
Stockholders Equity	5.52B	3.20B	2.62B	2.52B	2.10B	2.34B
Cash Flow
Free Cash Flow	140.39M	509.27M	939.91M	557.81M	1.31B	1.33B
Operating Cash Flow	1.17B	1.31B	1.53B	921.88M	1.62B	1.55B
Investing Cash Flow	-900.60M	-796.56M	-614.68M	-392.89M	-343.98M	-224.16M
Financing Cash Flow	-905.07M	-626.13M	-1.04B	-1.25B	-287.72M	260.06M

Dick's Sporting Goods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 210.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 210.07 is below the 20-day moving average (MA) of 212.57, below the 50-day MA of 217.53, and above the 200-day MA of 204.44, indicating a neutral trend. The MACD of -1.24 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 7.70 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
ASO	75 Outperform	$3.61B	9.89	18.34%	0.96%	-0.65%	-10.35%
DKS	71 Outperform	$18.71B	16.72	23.79%	2.31%	10.86%	-11.63%
BBY	62 Neutral	$14.97B	23.59	22.49%	5.30%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHWY	54 Neutral	$13.61B	66.63	59.58%	―	9.80%	-46.84%
BBWI	53 Neutral	$4.03B	6.05	―	4.07%	-1.04%	-20.88%
SPWH	43 Neutral	$54.64M	-1.45	-16.36%	―	-1.05%	-10.28%

Dick's Sporting Goods Corporate Events

Dick’s Sporting Goods Declares Quarterly Dividend

On November 24, 2025, Dick’s Sporting Goods declared a quarterly dividend of $1.2125 per share, payable on December 26, 2025. The company reported strong third-quarter results with a 5.7% increase in comparable sales for its Dick’s Business and raised its full-year 2025 guidance. The acquisition of Foot Locker was completed, positioning the company as a global leader in sports retail, although it anticipates future pre-tax charges related to integration costs.

Dick’s Sporting Goods Completes Exchange Offer with Foot Locker

On September 11, 2025, Dick’s Sporting Goods completed an exchange offer and consent solicitation involving Foot Locker’s 4.000% Senior Notes due 2029. This move allowed Dick’s to issue $381,932,000 in new notes, which will mature in 2029, while retiring a significant portion of Foot Locker’s existing notes. The exchange offer was not registered under the Securities Act, and Dick’s entered into a registration rights agreement to facilitate future exchanges of these notes. This strategic financial maneuver is expected to impact the company’s financial structure and stakeholder interests.