DICK'S Sporting Goods, Inc. (DKS)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
DICK'S Sporting Goods, Inc. trades at USD216.88, close to the USD225.40 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 49 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 21.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About DICK'S Sporting Goods, Inc.
DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as an omni-channel sporting goods retailer primarily in the United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and fishing gear products; and apparel. The company also offers footwear and accessories, such as athletic shoes for running, walking, tennis, fitness and cross training, basketball, and hiking; and specialty footwear comprising casual footwear and a complete line of cleats for team sports. In addition, it owns and operates Sporting Goods, Golf Galaxy, Public Lands, Moosejaw, and Going Going Gone! specialty concept stores; and DICK'S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for live streaming, scheduling, communications, and scorekeeping. Further, the company owns and operates Foot Locker, which includes Foot Locker, Kids Foot Locker, Champs Sports, WSS and atmos banners. It offers its products online, as well as through its mobile apps. 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.
DKS passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
15 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Scott Ferguson, Sachem Head Capital Management LP$318.26M · 7.7% of book
- Andreas Halvorsen, VIKING GLOBAL INVESTORS LP$250.67M · 0.7% of book
- Lee Ainslie, MAVERICK CAPITAL LTD$207.19M · 2.4% of book
- Select Equity Group, Select Equity Group, L.P.$110.43M · 0.6% of book
- Ken Griffin, CITADEL ADVISORS LLC$85.61M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is DICK'S Sporting Goods, Inc. (DKS) undervalued?
Against our discounted cash flow estimate of USD225.40, DKS at USD216.88 is 4% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own DKS?
15 of the institutions we track reported a position in DKS in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is DKS's P/E ratio?
DKS trades at 21.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for DKS, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.