As of January 3, 2018, Dick’s Sporting Goods (DKS) was trading at a 12-month forward PE (price-to-earnings) ratio of 12.1x. Following its fiscal 3Q17 results, the valuation multiple for Dick’s Sporting Goods has increased 22.6%.
The company is trading at a lower valuation multiple in comparison with Hibbett Sports (HIBB), which is trading at a 12-month forward PE ratio of 14.2x. Foot Locker (FL) and Big 5 Sporting Goods (BGFV) were trading at 11.7x and 9.0x, respectively, as of January 3, 2018, which is lower than the PE multiple for Dick’s Sporting Goods.
Analysts’ growth estimates
Analysts expect Dick’s Sporting Goods’ fiscal 2017 revenues to be $8.6 billion, up 9.0% while fiscal 2018 revenues are expected to be up 1.6% to $8.8 billion. For fiscal 2017, the company’s EPS could fall 4.6% to $2.98 on an adjusted basis. For fiscal 2018, its earnings per share are projected to decline 17.2% to $2.46.
For fiscal 2018, Dick’s Sporting Goods expects a promotional environment as well as strategic initiatives to mar earnings by as much as 20.0%.
For Hibbett Sports, analysts project its fiscal 2018 revenues to decline 1.4% to $959.4 million and its EPS to fall 45.3% to $1.49. For fiscal 2019, its revenues are projected to be down 0.1% to $958.7 million and its EPS could grow 4.3% to $1.55.
For Foot Locker in fiscal 2017, analysts expect revenues to be up 0.3% to $7.8 billion, and its EPS are projected to be down 15.5% to $4.07. For fiscal 2018, analysts expect its revenues to decrease 1.0% to $7.7 billion while its earnings are projected to increase 1.1% to $4.12 per share.
For fiscal 2017, analysts estimate Big 5 Sporting Goods’ revenues to increase 0.9% to $1.0 billion while its EPS are expected to rise 8.5% to $0.89. The company’s fiscal 2018 revenues are projected to be up 1.6% to $1.1 billion and EPS to decline 5.1% to $0.85.
In the last part of this series, we’ll take a look at what analysts have to say about Dick’s Sporting Goods stock.