Dick's Sporting Goods Inc

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DKS : NYSE : Services
$56.72 up 0.15 | 0.27%
Today's Range: 56.12 - 57.70
Avg. Daily Volume: 1,997,100
09/30/16 - 4:00 PM ET

Financial Analysis


DICKS SPORTING GOODS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. DICKS SPORTING GOODS INC has very weak liquidity. Currently, the Quick Ratio is 0.20 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 remained unchanged 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1967.861822.98
EBITDA ($mil)195.71196.43
EBIT ($mil)147.17148.41
Net Income ($mil)91.4290.84


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)112.33123.22
Total Assets ($mil)3987.673675.86
Total Debt ($mil)157.636.19
Equity ($mil)1829.61833.5


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin32.8233.0
EBITDA Margin9.9410.77
Operating Margin7.488.14
Sales Turnover1.881.92
Return on Assets8.139.76
Return on Equity17.7319.57
Debt Q2 FY16 Q2 FY15
Current Ratio1.581.56
Debt/Capital0.080.0
Interest Expense1.620.84
Interest Coverage90.96176.67


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)110.6116.35
Div / share0.150.14
EPS0.820.77
Book value / share16.5415.76
Institutional Own % n/a n/a
Avg Daily Volume2044522.01793560.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.96 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.72 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.35. 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 21.53 Peers 21.96   DKS 10.22 Peers 14.09

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 16.78 Peers 19.56   DKS 2.77 Peers 1.91

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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DKS 3.72 Peers 12.35   DKS -4.99 Peers 0.78

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 0.91 Peers 1.48   DKS 6.16 Peers 7.28

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DKS trails its peers on the basis of sales growth

 

 

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