DICK'S SPORTING GOODS, INC. (DKS) Stock Analysis
DICK'S SPORTING GOODS, INC. (DKS) Stock Analysis
Analysis from 10-Q filed 2025-12-05. Data as of Q1 2026.
Overall Grade: F (Concerning)
DICK'S SPORTING GOODS, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 9.1% | Near cost of capital |
| FCF Margin | 2.3% | Cash flow pressure |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore DICK'S SPORTING GOODS, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: DICK'S SPORTING GOODS, INC. earns 9.1% ROIC, Top 50% in Consumer Discretionary
DICK'S SPORTING GOODS, INC.'s trailing-twelve-month ROIC of 9.1% ranks Top 50% in Consumer Discretionary companies (sector median: 8.8%), driven by NOPAT margin of 4.7% combined with asset turnover of 1.3x. Source: 10-Q filed 2025-12-05. Gross margin of 32.9% with operating margin at 6.4% reflects a competitive pricing environment.
| Metric | DKS | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Adequate | Above sector median of 8.8% |
| Return on Equity (ROE) | 20.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 32.9% | Good | Competitive pricing environment |
| Operating Margin | 6.4% | Adequate | Moderate operational efficiency |
Cash Flow: DICK'S SPORTING GOODS, INC. generates $400.2M FCF at 2.3% margin, positive NaN/8 quarters
DICK'S SPORTING GOODS, INC. generated $400.2M in free cash flow (TTM), a 2.3% FCF margin, a margin that ranks Bottom 50% in Consumer Discretionary. Operating cash flow exceeds net income by 1.8x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-05.
| Metric | DKS | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 2.3% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $400.2M | Good | Positive cash generation |
| OCF/Net Income | 1.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: DICK'S SPORTING GOODS, INC. at 0.0x leverage
DICK'S SPORTING GOODS, INC.'s debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-12-05.
| Metric | DKS | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: DICK'S SPORTING GOODS, INC. trades at 19.5x earnings
DICK'S SPORTING GOODS, INC. trades at a P/E of 19.5x. Free cash flow yield of 2.4% reflects market expectations for growth.
| Metric | DKS | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.5x | Adequate | Reasonable valuation |
| EV/Sales | 0.9x | Excellent | Attractive revenue multiple |
| FCF Yield | 2.4% | Adequate | Lower cash yield |
| Dividend Yield | 2.5% | Adequate | Growth focus over income |
Capital Allocation: DICK'S SPORTING GOODS, INC. returns 4.5% shareholder yield
DICK'S SPORTING GOODS, INC.'s total shareholder yield is 4.5% (dividends 2.5% + buybacks 2.1%). Source: 10-Q filed 2025-12-05.
| Metric | DKS | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.5% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.1% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $761.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Top 50% | 1.0x above |
| Free Cash Flow Margin | 2.3% | Bottom 50% | 0.9x below |
| Gross Margin | 32.9% | Bottom 50% | 0.8x below |
| Operating Margin | 6.4% | Top 50% | 1.4x above |
| Return on Equity (ROE) | 20.8% | Top 50% | 2.0x above |
| P/E Ratio | 19.5x | N/A | - |
Financial Scorecard
| Metric | DKS | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.1% | Adequate | Top 50% of sector (median: 8.8%) |
| Free Cash Flow Margin | 2.3% | Warning | Bottom 50% of sector (median: 2.7%) |
| Gross Margin | 32.9% | Good | Bottom 50% of sector (median: 39.5%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 19.5x | Adequate | Fair value |
| Free Cash Flow Yield | 2.4% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is DICK'S SPORTING GOODS, INC.'s Return on Invested Capital (ROIC)?
DICK'S SPORTING GOODS, INC. (DKS) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.1%. This compares above the sector median of 8.8%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is DICK'S SPORTING GOODS, INC.'s Free Cash Flow Margin?
DICK'S SPORTING GOODS, INC. (DKS) has a free cash flow margin of 2.3%, generating $400.2 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is DICK'S SPORTING GOODS, INC. stock overvalued or undervalued?
DICK'S SPORTING GOODS, INC. (DKS) trades at a P/E ratio of 19.5x, which is above the sector median of N/A. The EV/Sales multiple is 0.9x. Free cash flow yield is 2.4%, reflecting growth expectations priced into the stock.
Q: Does DICK'S SPORTING GOODS, INC. pay a dividend?
DICK'S SPORTING GOODS, INC. (DKS) currently pays a dividend yield of 2.5%. Including share buybacks, the total shareholder yield is 4.5%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is DICK'S SPORTING GOODS, INC.'s revenue and earnings growth?
DICK'S SPORTING GOODS, INC. (DKS) grew revenue by 28.1% year-over-year. Earnings per share decreased by 27.9% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is DICK'S SPORTING GOODS, INC. buying back stock?
DICK'S SPORTING GOODS, INC. (DKS) repurchased $347.1 million of stock over the trailing twelve months. This represents a buyback yield of 2.1%.
Q: How does DICK'S SPORTING GOODS, INC. compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, DICK'S SPORTING GOODS, INC. (DKS) shows: ROIC of 9.1% is above the sector median of 8.8% (Top 49%). FCF margin of 2.3% trails the sector median of 2.7% (Bottom 46% of sector). Gross margin at 32.9% is 6.6 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with DICK'S SPORTING GOODS, INC.?
Investors in DICK'S SPORTING GOODS, INC. (DKS) should monitor these potential warning signs: 1) FCF margin is thin at 2.3%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-12-05. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.