Dick's Sporting Goods DKS
Dick's Sporting Goods scores good on business quality (6.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Dick's Sporting Goods does
Dick's Sporting Goods sells athletic apparel, footwear, and equipment through its large-format retail stores, making money by capturing market share from struggling mall-based brands.
- What it does best
Dick's dominates large-format sporting goods retail, backed by a revenue growth rate of 28.1% that sits in the top decile of its sector at the 95th percentile. Scale lets it secure exclusive product launches from major brands that smaller peers like Five Below cannot match.
- The main risk
Heavy capital expenditures threaten cash conversion, with capex reaching $1.4B against free cash flow of just $239M as the company builds out its store concepts.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at 32.1% while operating margin is 6.7%, compressing due to heavy investment spending. Scale is not yet yielding higher operating margins.
Scale creates a vendor relationship moat that locks in top athletic brands, reflected in a revenue growth percentile of 95. Rivals cannot easily replicate its massive footprint.
Revenue is growing at 28.1%, well above historical levels, driven by aggressive retail expansion and strong demand in its core athletic merchandise categories.
Debt-to-equity of 0.3x and interest coverage of 19.8x provide a sturdy balance sheet, though heavy capex has squeezed free cash flow down to $239M, getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
7 insiders bought $5.6M on the open market.
Our sealed record on DKS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Dick's Sporting Goods scores good on the Cluenex quality check (6.4 of 10), measured against its own industry. Profitability is weak, moat fair, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: 7 insiders bought $5.6M on the open market.
Nov 23, 2026.
See DKS today
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Cite this page: Cluenex, “Dick's Sporting Goods (DKS)”, https://cluenex.com/stocks/dks/, data as of Oct 10, 2026.