Dick's Sporting Goods Inc Common Stock (DKS)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Solid return on equity of 19.4% above cost of capital
• Revenue growth of 59.9% demonstrates strong top-line momentum
• Attractive 2.2% dividend yield providing steady income returns
• Established organization with 31,600 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($118) with negative 92% margin of safety—limited downside protection

AI Analysis

Dick's Sporting Goods Inc Common Stock is a mid-cap consumer cyclical company valued at $20.4 billion. The business generates $17.2 billion in annual revenue with a 0.7% net margin. From a quality standpoint, Dick's shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.2 in the grey zone. On valuation, the stock is reasonably priced at 22.5x earnings, with trades above its Graham Number with a negative 92% margin. Growth dynamics show revenue growing at 59.9% and profit growth of -57.2%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Dick's's 60% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer