Dicks Sporting Profitability Analysis

DKS Stock  USD 206.10  6.01  2.83%   
Considering the key profitability indicators obtained from Dicks Sporting's historical financial statements, Dicks Sporting Goods may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in August. Profitability indicators assess Dicks Sporting's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2000-04-30
Previous Quarter
296.4 M
Current Value
275.3 M
Quarterly Volatility
104.8 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Dicks Sporting's Days Sales Outstanding is comparatively stable compared to the past year. Days Of Sales Outstanding is likely to gain to 5.07 in 2024, whereas Price To Sales Ratio is likely to drop 0.90 in 2024. At this time, Dicks Sporting's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 1.4 B in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (91.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.3501
Fairly Down
Slightly volatile
Net Profit Margin0.05050.0806
Way Down
Slightly volatile
Operating Profit Margin0.08130.1089
Way Down
Slightly volatile
Pretax Profit Margin0.08160.1015
Significantly Down
Slightly volatile
Return On Assets0.10.103
Fairly Down
Very volatile
Return On Equity0.190.3998
Way Down
Slightly volatile
For Dicks Sporting profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dicks Sporting to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dicks Sporting Goods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dicks Sporting's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dicks Sporting Goods over time as well as its relative position and ranking within its peers.
  

Dicks Sporting's Revenue Breakdown by Earning Segment

Check out Investing Opportunities.
Is Other Specialty Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dicks Sporting. If investors know Dicks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dicks Sporting listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
4.1
Earnings Share
12.09
Revenue Per Share
161.124
Quarterly Revenue Growth
0.062
The market value of Dicks Sporting Goods is measured differently than its book value, which is the value of Dicks that is recorded on the company's balance sheet. Investors also form their own opinion of Dicks Sporting's value that differs from its market value or its book value, called intrinsic value, which is Dicks Sporting's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dicks Sporting's market value can be influenced by many factors that don't directly affect Dicks Sporting's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dicks Sporting's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dicks Sporting is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dicks Sporting's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dicks Sporting Goods Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dicks Sporting's current stock value. Our valuation model uses many indicators to compare Dicks Sporting value to that of its competitors to determine the firm's financial worth.
Dicks Sporting Goods is rated # 5 in return on equity category among its peers. It also is rated # 5 in return on asset category among its peers reporting about  0.24  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Dicks Sporting Goods is roughly  4.16 . At this time, Dicks Sporting's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Dicks Sporting by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Dicks Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Dicks Sporting

Return On Equity

 = 

Net Income

Total Equity

 = 
0.38
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Dicks Sporting

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0912
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Dicks Return On Asset Comparison

Dicks Sporting is currently under evaluation in return on asset category among its peers.

Dicks Sporting Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dicks Sporting, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dicks Sporting will eventually generate negative long term returns. The profitability progress is the general direction of Dicks Sporting's change in net profit over the period of time. It can combine multiple indicators of Dicks Sporting, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-329 K-345.4 K
Operating Income1.4 B1.5 B
Income Before Tax1.3 B1.4 B
Total Other Income Expense Net-96.3 M-91.5 M
Net IncomeB1.1 B
Income Tax Expense271.6 M146.6 M
Net Income Applicable To Common Shares1.2 B1.3 B
Net Income From Continuing OpsB588 M
Non Operating Income Net Other56.5 M59.3 M
Interest Income109.5 M115 M
Net Interest Income-58 M-60.9 M
Change To Netincome137.8 M144.6 M
Net Income Per Share 12.72  2.89 
Income Quality 1.46  1.76 
Net Income Per E B T 0.79  0.62 

Dicks Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dicks Sporting. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dicks Sporting position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dicks Sporting's important profitability drivers and their relationship over time.

Dicks Sporting Profitability Trends

Dicks Sporting profitability trend refers to the progression of profit or loss within a business. An upward trend means that Dicks Sporting's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Dicks Sporting's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Dicks Sporting Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Dicks Sporting different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Dicks Sporting in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Dicks Sporting's future profitability.

Use Dicks Sporting in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dicks Sporting position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dicks Sporting will appreciate offsetting losses from the drop in the long position's value.

Dicks Sporting Pair Trading

Dicks Sporting Goods Pair Trading Analysis

The ability to find closely correlated positions to Dicks Sporting could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dicks Sporting when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dicks Sporting - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dicks Sporting Goods to buy it.
The correlation of Dicks Sporting is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dicks Sporting moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dicks Sporting Goods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dicks Sporting can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dicks Sporting position

In addition to having Dicks Sporting in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Giant Impact Thematic Idea Now

Giant Impact
Giant Impact Theme
An experimental equal-weighted decomposition of large high potential stocks based on Macroaxis scoring framework. The Giant Impact theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Giant Impact Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for Dicks Stock Analysis

When running Dicks Sporting's price analysis, check to measure Dicks Sporting's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dicks Sporting is operating at the current time. Most of Dicks Sporting's value examination focuses on studying past and present price action to predict the probability of Dicks Sporting's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dicks Sporting's price. Additionally, you may evaluate how the addition of Dicks Sporting to your portfolios can decrease your overall portfolio volatility.