DICK'S Sporting Goods Shares Offer A Bargain

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Valuentum
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Summary

  • DICK'S Sporting Goods' e-commerce sales have soared higher over the past few years and the company continues to support its private label brands.
  • The firm is a tremendous generator of free cash flow and has a pristine balance sheet. We're watching recent trends closely though.
  • We expect that DICK'S Sporting Goods will continue to grow its dividend at a robust pace going forward.
  • Investors must remember that no matter how strong DICK'S Sporting Goods’ recent growth has been, it is not immune to challenges of the current retail environment.
  • Our fair value estimate stands considerably above its last trading price, however.

Dick"s Sporting Goods Reports Record Quarterly Earnings, Driven By Online Sales

Justin Sullivan

By Valuentum Analysts.

At Valuentum, we use discounted cash-flow (DCF) analysis as the bedrock of our process. However, we also use relative valuation and technical and momentum indicators and blend that into an output called the Valuentum Buying Index rating, or the VBI rating. We

The flow chart shows how we derive a rating for each company.

The flow chart shows how we derive a

Investment Considerations

Image Source: Valuentum

Image Shown: We are big fans of Dick's Sporting Goods' relatively healthy balance sheet, as the firm had a marginal net cash position on hand as of July 30, 2022.

Image Shown: We are big fans of Dick's Sporting Goods' relatively healthy balance sheet, as the firm had a marginal net cash position on hand as of July 30, 2022. ( Image Source: Dick's Sporting Goods - Second Quarter of Fiscal 2022 Earnings Press Release)

Return on Invested Capital

Return on Invested Capital (Valuentum)

Cash Flow Generation

Image Source: Valuentum

Image Shown: An overview of Dick's Sporting Goods' operational and financial performance last fiscal quarter.

Image Shown: An overview of Dick's Sporting Goods' operational and financial performance last fiscal quarter. (Image Source: Dick's Sporting Goods - IR Infographic covering the Second Quarter of Fiscal 2022)

Range of Potential Outcomes

Image Source: Valuentum

This article was written by

Valuentum profile picture
16.97K Followers
We offer subscriptions and exclusive newsletters. Visit our website at www.valuentum.com for more information. Valuentum is an independent investment research publisher, offering premium equity reports and dividend reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. Please read our Disclaimer that applies to all articles published on Seeking Alpha: http://www.valuentum.com/categories/20110613. Follow us on Twitter: @Valuentum

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson's household owns shares in HON, DIS, HAS, NKE, and RSP. Some of the other securities written about in this article may be included in Valuentum's simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.

This article or report and any links within are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of this article and accepts no liability for how readers may choose to utilize the content. Assumptions, opinions, and estimates are based on our judgment as of the date of the article and are subject to change without notice.

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