Dicks Sporting Bonds

DKS Stock  USD 222.59  5.15  2.37%   
Dicks Sporting Goods holds a debt-to-equity ratio of 1.744. At this time, Dicks Sporting's Long Term Debt is comparatively stable compared to the past year. Short and Long Term Debt Total is likely to gain to about 4.5 B in 2024, whereas Debt Ratio is likely to drop 0.11 in 2024. Dicks Sporting's financial risk is the risk to Dicks Sporting stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Dicks Sporting's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Dicks Sporting's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Dicks Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Dicks Sporting's stakeholders.
For most companies, including Dicks Sporting, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Dicks Sporting Goods the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book
7.4912
Book Value
32.565
Operating Margin
0.1043
Profit Margin
0.0806
Return On Assets
0.0934
At this time, Dicks Sporting's Long Term Debt is comparatively stable compared to the past year. Short and Long Term Debt Total is likely to gain to about 4.5 B in 2024, whereas Debt Ratio is likely to drop 0.11 in 2024.
  
Check out the analysis of Dicks Sporting Fundamentals Over Time.

Dicks Sporting Bond Ratings

Dicks Sporting Goods bond ratings play a critical role in determining how much Dicks Sporting have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Dicks Sporting's borrowing costs.
Piotroski F Score
4  Poor
Beneish M Score

Dicks Sporting Goods Debt to Cash Allocation

As Dicks Sporting Goods follows its natural business cycle, the capital allocation decisions will not magically go away. Dicks Sporting's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has 4.26 B in debt with debt to equity (D/E) ratio of 1.74, which is OK given its current industry classification. Dicks Sporting Goods has a current ratio of 1.76, which is typical for the industry and considered as normal. Debt can assist Dicks Sporting until it has trouble settling it off, either with new capital or with free cash flow. So, Dicks Sporting's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Dicks Sporting Goods sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Dicks to invest in growth at high rates of return. When we think about Dicks Sporting's use of debt, we should always consider it together with cash and equity.

Dicks Sporting Total Assets Over Time

Dicks Sporting Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Dicks Sporting's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Dicks Sporting, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Dicks Sporting debt ratio should be compared their industry average or other competing firms.

Dicks Sporting Corporate Bonds Issued

Dicks Sporting issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Dicks Sporting Goods uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Dicks bonds can be classified according to their maturity, which is the date when Dicks Sporting Goods has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Dicks Long Term Debt

Long Term Debt

1.86 Billion

At this time, Dicks Sporting's Long Term Debt is comparatively stable compared to the past year.

Understaning Dicks Sporting Use of Financial Leverage

Dicks Sporting financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Dicks Sporting's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Dicks Sporting assets, the company is considered highly leveraged. Understanding the composition and structure of overall Dicks Sporting debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Dicks Sporting's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Dicks Sporting's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
Last ReportedProjected for 2024
Long Term Debt1.8 B1.9 B
Short and Long Term Debt Total4.3 B4.5 B
Net Debt2.5 B2.6 B
Short Term Debt492.9 M517.5 M
Long Term Debt Total1.8 B1.9 B
Short and Long Term Debt6.1 M6.4 M
Long Term Debt To Capitalization 0.36  0.38 
Total Debt To Capitalization 0.43  0.45 
Debt Equity Ratio 0.76  0.42 
Debt Ratio 0.21  0.11 
Cash Flow To Debt Ratio 0.83  0.79 
Please read more on our technical analysis page.

Dicks Sporting Investors Sentiment

The influence of Dicks Sporting's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Dicks. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Dicks Sporting's public news can be used to forecast risks associated with an investment in Dicks. The trend in average sentiment can be used to explain how an investor holding Dicks can time the market purely based on public headlines and social activities around Dicks Sporting Goods. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Dicks Sporting's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Dicks Sporting's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Dicks Sporting's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Dicks Sporting.

Dicks Sporting Implied Volatility

    
  39.21  
Dicks Sporting's implied volatility exposes the market's sentiment of Dicks Sporting Goods stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dicks Sporting's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dicks Sporting stock will not fluctuate a lot when Dicks Sporting's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Dicks Sporting in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Dicks Sporting's short interest history, or implied volatility extrapolated from Dicks Sporting options trading.

Pair Trading with Dicks Sporting

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.

Moving together with Dicks Stock

  0.64M Macys Inc Financial Report 6th of June 2024 PairCorr
  0.86DIBS 1StdibsCom Financial Report 8th of May 2024 PairCorr
  0.78AN AutoNation Financial Report 18th of April 2024 PairCorr

Moving against Dicks Stock

  0.92BGI Birks GroupPairCorr
  0.8LL LL Flooring HoldingsPairCorr
  0.79BQ Boqii Holding LimitedPairCorr
  0.74FNKO Funko Inc Financial Report 2nd of May 2024 PairCorr
  0.56DLTH Duluth Holdings Financial Report 6th of June 2024 PairCorr
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
When determining whether Dicks Sporting Goods is a strong investment it is important to analyze Dicks Sporting's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dicks Sporting's future performance. For an informed investment choice regarding Dicks Stock, refer to the following important reports:
Check out the analysis of Dicks Sporting Fundamentals Over Time.
You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Complementary 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.
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Is Dicks Sporting's industry 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
0.371
Dividend Share
4
Earnings Share
11.23
Revenue Per Share
157.765
Quarterly Revenue Growth
0.078
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.

What is Financial Leverage?

Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.

Leverage and Capital Costs

The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.

Benefits of Financial Leverage

Leverage provides the following benefits for companies:
  • Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
  • It provides a variety of financing sources by which the firm can achieve its target earnings.
  • Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.