Dick's Sporting Goods Inc (DKS, Financial), a prominent player in the Retail - Cyclical industry, is currently trading at $144.74 with a market capitalization of $12.48 billion. The stock has seen a gain of 4.02% today and a significant increase of 9.67% over the past four weeks. In this article, we will delve into the company's GF Score of 87 out of 100, which indicates good outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which considers five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
DKS has a Financial Strength rank of 6/10. This ranking is based on several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. DKS's interest coverage is 16.81, indicating a low debt burden. The company's debt to revenue ratio is 0.34, which is relatively low, and its Altman Z score is 4.13, suggesting a low risk of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is 9/10, indicating high profitability. This rank is based on factors such as operating margin, Piotroski F-Score, trend of operating margin, consistency of profitability, and Predictability Rank. DKS's operating margin is 11.37%, and its Piotroski F-Score is 5, suggesting a healthy financial situation. The company has shown consistent profitability over the past 10 years.
Growth Rank Analysis
DKS's Growth Rank is 9/10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 9.20%, and its 3-year revenue growth rate is 8.20%. The 5-year EBITDA growth rate is an impressive 27.00%, suggesting a robust growth trajectory.
GF Value Rank Analysis
The company's GF Value Rank is 3/10, which is determined by the price-to-GF-Value ratio. This rank suggests that the stock is currently overvalued. However, it's important to note that the GF Value Rank also considers the company's past returns and growth, as well as future business performance estimates.
Momentum Rank Analysis
DKS's Momentum Rank is 6/10, indicating a moderate momentum in the stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors in the same industry, DKS holds a strong position. Five Below Inc (FIVE, Financial) has a GF Score of 94, Casey's General Stores Inc (CASY, Financial) has a GF Score of 91, and Williams-Sonoma Inc (WSM, Financial) has a GF Score of 94. You can find more details about these competitors here.
Conclusion
In conclusion, DKS's overall GF Score of 87 suggests good outperformance potential. The company's strong financial strength, high profitability, robust growth, and moderate momentum make it a compelling investment option. However, investors should also consider the company's GF Value Rank and the competitive landscape before making investment decisions.
