Security Analysis

Security Analysis

Share this post

Security Analysis
Security Analysis
Dick's Sporting Goods (DKS)
Copy link
Facebook
Email
Notes
More

Dick's Sporting Goods (DKS)

Value Stock Geek's avatar
Value Stock Geek
May 05, 2024
∙ Paid
8

Share this post

Security Analysis
Security Analysis
Dick's Sporting Goods (DKS)
Copy link
Facebook
Email
Notes
More
Share
a pile of tennis balls sitting on top of a rack
Photo by Elizabeth Dunne on Unsplash

Key Statistics

EV/EBIT = 13.8x

ROE = 40.71%

Debt/Equity = 163%

FCF Yield = 5.95%

Dividend Yield = $2.17%

Market Cap = 16.3 billion

The Company

DICK'S Sporting Goods (DKS) is the largest sporting goods retailer in the U.S.

With 850 stores nationwide, they offer an extensive range of equipment, footwear, apparel, and accessories across various sports. Additionally, they own specialized stores like Golf Galaxy and Moosejaw.

The company had modest origins in 1948 when an 18-year-old named Richard Stack launched a small fishing tackle shop in Binghamton, New York, with a mere $300 loaned by his grandmother. Dick, inspired by his time at an Army surplus store where his suggestions for a fishing tackle business were disregarded, struck out on his own and founded his shop.

As time progressed, the store diversified its offerings to include various sports equipment and outdoor gear.

In the 1970s and 1980s, Dick's son, Ed Stack, assumed leadership and further expanded the business. By the 1990s, the Dick's Sporting Goods chain had grown to encompass 50 stores. 

In 2002, the company went public, experiencing rapid expansion by acquiring other sports retailers such as Galyan's Trading Company and Golf Galaxy.

Despite facing formidable competition, particularly from Sports Authority, Dick's continued to flourish, ultimately surpassing its rival in size. In recent years, the company has focused on enhancing its online presence and refining the in-store customer experience.

They divide their product offerings into four main categories: hardlines, apparel, footwear, and other. Hardlines, encompassing sporting goods equipment, fitness gear, and golf equipment, contribute significantly to revenue at 38%. Apparel accounts for 33% of revenue. Footwear also plays a significant role, capturing 26% of revenue. Other categories, including their experiential in-store services and specialty concept stores, contribute 3%.

Products are divided into two categories of brands: national and vertical. National brands are widely recognized and sold in various stores, while vertical brands are exclusive to DICK'S, offering specially crafted products tailored to their customers' needs.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Value Stock Geek
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More