$Dick's Sporting Goods (DKS.US)$🎯 2023.12.20 The current pr...

New data: 2023Q3. Revenue continues to grow. Operating profit has shrunk sharply for more than 5 consecutive quarters due to rising costs and surging expenses, while net profit has shrunk less due to falling interest expenses and other revenue increases.

In the first three quarters of 2023, revenue increased by 3.8%, operating profit shrank 21%, and net profit shrank 7%. Interest expenses account for 4.8% of operating profit and are not burdensome. The total return on net assets for the first three quarters was 28.9%

The balance ratio increased from 71.9% at the beginning of the year to 74.3%. Cash was reduced and accounts receivable increased dramatically. However, the ratio was relatively normal. Long-term loans of $1,483 billion accounted for 62.2% of the net assets of $2,385 billion, and the leverage ratio increased. Treasury stocks reached $4.42 billion, while share capital decreased by 2% in the first 3 quarters.

Net cash flow was significantly higher than net investment, and shareholder surpluses were high.

Currently, the price-earnings ratio is 13.6, the price-earnings ratio has dropped to 13, and the dividend ratio is 2.4%. Considering the cyclicality of the sector, the valuation is within a reasonably high range, and positions can be slightly reduced.