📊 DKS Key Takeaways
Is Dick's Sporting Goods, Inc.. (DKS) a Good Investment?
Dick's Sporting Goods exhibits strong top-line growth (28.1% YoY) and maintains an exceptionally strong balance sheet with zero long-term debt and $998M cash, but deteriorating free cash flow (-$84.2M) and sharply declining EPS (-29% YoY) despite revenue expansion signal concerning capital deployment efficiency and operational margin pressures that warrant caution.
DICK'S SPORTING GOODS shows solid core fundamentals, with healthy gross and operating margins, double-digit EPS growth, and a debt-free balance sheet that gives it meaningful financial flexibility. However, revenue growth is modest and free cash flow is negative because capital spending is outpacing operating cash generation, which tempers the quality of the current earnings profile.
Dick's Sporting Goods, Inc.. Key Strengths (DKS)
- Exceptional revenue growth of 28.1% YoY demonstrates strong market demand and operational execution
- Fortress balance sheet with zero long-term debt and $998.2M cash provides significant financial flexibility and downside protection
- Solid operating margin of 8.7% and gross margin of 32.6% show reasonable pricing power and cost management in competitive retail environment
- Healthy profitability for a retailer, including 35.5% gross margin and 8.3% operating margin
- Debt-free capital structure with strong interest coverage and a solid 1.57x current ratio
- EPS growth of 15.4% outpaced revenue growth, indicating good cost control and operating discipline
DKS Stock Risks: Dick's Sporting Goods, Inc.. Investment Risks
- Negative free cash flow of -$84.2M despite positive operating cash flow signals unsustainable capital expenditure relative to cash generation
- EPS declined 29% YoY while revenue grew 28.1% YoY, indicating severe margin compression, share dilution, or other operational headwinds
- Very poor capital efficiency with ROE of 5.7% and ROA of 1.8% suggest capital is not generating adequate returns
- Low quick ratio of 0.38x raises acute liquidity concerns despite reasonable current ratio
- Capital expenditure of $360.7M exceeds operating cash flow of $276.5M, creating cash burn that is unsustainable long-term
- Negative free cash flow of -$306.03M raises questions about cash conversion and near-term capital intensity
- Quick ratio of 0.37x shows liquidity depends heavily on inventory turnover
- Revenue growth of 3.5% is positive but not strong enough on its own to offset execution risk if margins soften
Key Metrics to Watch
- Free cash flow trajectory and whether capex moderates or FCF returns to positive in next 2-3 quarters
- EPS growth acceleration to match revenue growth indicating resolution of margin pressure
- Return on equity and return on assets improvement from capital investments
- Quarterly operating margin trends and gross margin stability
- Capital intensity ratio and payoff timeline from recent heavy capex investments
- Free cash flow and operating cash flow relative to capital expenditures
- Comparable sales and operating margin trend
Dick's Sporting Goods, Inc.. (DKS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dick's Sporting Goods, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DKS Profit Margin, ROE & Profitability Analysis
DKS vs Consumer Sector: How Dick's Sporting Goods, Inc.. Compares
How Dick's Sporting Goods, Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dick's Sporting Goods, Inc.. Stock Overvalued? DKS Valuation Analysis 2026
Based on fundamental analysis, Dick's Sporting Goods, Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dick's Sporting Goods, Inc.. Balance Sheet: DKS Debt, Cash & Liquidity
DKS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dick's Sporting Goods, Inc..'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.18 reflects profitable operations.
DKS Revenue Growth, EPS Growth & YoY Performance
DKS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $264.3M | $3.24 |
| Q3 2025 | $3.1B | $75.2M | $0.86 |
| Q2 2025 | $3.5B | $264.3M | $4.37 |
| Q1 2025 | $3.0B | $264.3M | $3.24 |
| Q3 2024 | $3.0B | N/A | $2.39 |
| Q2 2024 | $3.2B | N/A | $2.82 |
| Q1 2024 | $2.8B | N/A | $3.30 |
| Q3 2023 | $3.0B | N/A | $2.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dick's Sporting Goods, Inc.. Dividends, Buybacks & Capital Allocation
DKS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dick's Sporting Goods, Inc.. (CIK: 0001089063)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DKS
What is the AI rating for DKS?
Dick's Sporting Goods, Inc.. (DKS) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DKS's key strengths?
Claude: Exceptional revenue growth of 28.1% YoY demonstrates strong market demand and operational execution. Fortress balance sheet with zero long-term debt and $998.2M cash provides significant financial flexibility and downside protection. ChatGPT: Healthy profitability for a retailer, including 35.5% gross margin and 8.3% operating margin. Debt-free capital structure with strong interest coverage and a solid 1.57x current ratio.
What are the risks of investing in DKS?
Claude: Negative free cash flow of -$84.2M despite positive operating cash flow signals unsustainable capital expenditure relative to cash generation. EPS declined 29% YoY while revenue grew 28.1% YoY, indicating severe margin compression, share dilution, or other operational headwinds. ChatGPT: Negative free cash flow of -$306.03M raises questions about cash conversion and near-term capital intensity. Quick ratio of 0.37x shows liquidity depends heavily on inventory turnover.
What is DKS's revenue and growth?
Dick's Sporting Goods, Inc.. reported revenue of $5.2B.
Does DKS pay dividends?
Dick's Sporting Goods, Inc.. pays dividends, with $113.8M distributed to shareholders in the trailing twelve months.
Where can I find DKS SEC filings?
Official SEC filings for Dick's Sporting Goods, Inc.. (CIK: 0001089063) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DKS's EPS?
Dick's Sporting Goods, Inc.. has a diluted EPS of $3.54.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DKS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dick's Sporting Goods, Inc.. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DKS stock overvalued or undervalued?
Valuation metrics for DKS: ROE of 5.7% (sector avg: 18%), net margin of 6.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is DKS's AI grade for 2026?
Our dual AI analysis gives Dick's Sporting Goods, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DKS's free cash flow?
Dick's Sporting Goods, Inc..'s operating cash flow is $276.5M, with capital expenditures of $360.7M. FCF margin is -1.6%.
How does DKS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 6.2% (avg: 8%), ROE 5.7% (avg: 18%), current ratio 1.50 (avg: 1.5).