Dick's Sporting Goods Inc

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DKS : NYSE : Services
$62.25 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1964000.0
12/07/16 - 4:02 PM ET

Financial Analysis


DICKS SPORTING GOODS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. DICKS SPORTING GOODS INC has very weak liquidity. Currently, the Quick Ratio is 0.15 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.50% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1810.351642.63
EBITDA ($mil)134.0131.05
EBIT ($mil)81.484.97
Net Income ($mil)48.9147.22


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)85.4173.8
Total Assets ($mil)4382.214058.43
Total Debt ($mil)266.38348.45
Equity ($mil)1869.871723.31


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin33.4432.54
EBITDA Margin7.47.97
Operating Margin4.55.17
Sales Turnover1.751.77
Return on Assets7.448.79
Return on Equity17.4420.71
Debt Q3 FY16 Q3 FY15
Current Ratio1.571.64
Debt/Capital0.120.17
Interest Expense1.271.08
Interest Coverage64.3478.96


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)110.67113.2
Div / share0.150.14
EPS0.440.41
Book value / share16.915.22
Institutional Own % n/a n/a
Avg Daily Volume1961832.01950610.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.38 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.45. Conducting a second comparison, its price-to-book ratio of 3.62 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 13.24. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DICKS SPORTING GOODS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DKS 21.16 Peers 22.38   DKS 9.55 Peers 14.06

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

DKS is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DKS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DKS 16.31 Peers 21.62   DKS 2.22 Peers 1.97

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DKS is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DKS trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DKS 3.62 Peers 13.24   DKS -3.99 Peers 8.25

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DKS is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DKS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DKS 0.88 Peers 1.47   DKS 6.78 Peers 6.98

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DKS is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

DKS is keeping pace with its peers on the basis of sales growth.

 

 

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