As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Dicks Sporting Goods Inc (NYSE: DKS).
Dick’s Sporting Goods retails athletic apparel, footwear, and equipment for sports. Dick’s operates about 730 stores and another 125 specialty stores under the Golf Galaxy and Field & Stream names. Dick’s also operates e-commerce sites including youth sports site Team Sports HQ. Dick’s carries private-label merchandise and national brands such as Nike, The North Face, Under Armour, Callaway Golf, and TaylorMade. Based in the Pittsburgh area, Dick’s was founded in 1948 by the father of current executive chairman and controlling shareholder Edward Stack.
A quick look at the share price history for Dick’s Sporting Goods (below) over the past twelve months shows that the price is up 136%. Here’s why the company is undervalued.
Market Cap: $8.85 Billion
Enterprise Value: $10.14 Billion
Operating Earnings: $1.53 Billion
Acquirer’s Multiple: 6.64
Free Cash Flow (TTM)
Free Cash Flow: $1.98 Billion
FCF/EV Yield: 19.5%
Piotroski F-Score: 7
Altman Z-Score: 3.80
Beneish M-Score: -3.32
Shareholder Yield: 2%
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