DKS (DICK'S Sporting Goods Inc) vs S&P 500 Comparison

DKS

S&P 500

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DKS

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

DKS

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

DKS

TSCO

ULTA

601888

9992

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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DICK'S Sporting Goods Inc
Glance View

Economic Moat

None

Market Cap

18.8B USD

Industry

Retail

In the bustling landscape of American retail, DICK'S Sporting Goods Inc. stands out as a hearty stalwart of athletic apparel and equipment, growing from humble beginnings into a leading player in the sporting goods domain. Founded in 1948 by Richard "Dick" Stack, the company started as a bait-and-tackle shop in Binghamton, New York. What set this retailer apart was its founder's keen understanding of athletes' needs and its subsequent commitment to not just meeting but exceeding customer expectations. Over the years, DICK'S Sporting Goods expanded its offerings beyond just fishing gear to encompass a broad array of sports and outdoor products, capitalizing on the increasing consumer interest in fitness and healthy living. Today, the company boasts a prominent presence with hundreds of stores across the United States, strategically located to capture the hearts and wallets of sports enthusiasts ranging from the everyday jogger to the die-hard sports fan. The crux of DICK'S Sporting Goods' business model lies in delivering a wide variety of quality products, including branded and exclusive private labels, designed to cater to athletes of all kinds. This approach is bolstered by its omnichannel retail strategy, seamlessly integrating in-store and online experiences, which has been critical in adapting to shifting consumer behaviors, particularly during and after the pandemic's onset. Offering everything from sportswear and footwear to equipment for sports like golf, baseball, and camping, DICK'S leverages its comprehensive inventory and knowledgeable staff to provide a tailored shopping experience. The company also enhances its revenue stream by offering services like equipment maintenance, fitness training programs, and seasonal gear rentals, thus ensuring a steady stream of income beyond traditional retail sales. In essence, DICK'S Sporting Goods has built its empire not just on products, but on its unwavering commitment to helping customers pursue their passion for sports and the outdoors.

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DKS Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		Tractor Supply Co NASDAQ:TSCO	Select
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CN		Pop Mart International Group Ltd HKEX:9992	Select
HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Select
NL	G	Grandvision NV F:8GV	Select
JP		Sanrio Co Ltd TSE:8136	Select
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UK		JD Sports Fashion PLC LSE:JD	Select
US		Five Below Inc NASDAQ:FIVE	Select

US		Tractor Supply Co NASDAQ:TSCO	Add
US		Ulta Beauty Inc NASDAQ:ULTA	Add
CN		China Tourism Group Duty Free Corp Ltd SSE:601888	Add
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HK		Chow Tai Fook Jewellery Group Ltd HKEX:1929	Add
NL	G	Grandvision NV F:8GV	Add
JP		Sanrio Co Ltd TSE:8136	Add
US		Bath & Body Works Inc NYSE:BBWI	Add
UK		JD Sports Fashion PLC LSE:JD	Add
US		Five Below Inc NASDAQ:FIVE	Add

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DKS

vs

S&P 500

Stocks Performance
DKS vs S&P 500

Performance Gap
DKS vs S&P 500

Performance By Year
DKS vs S&P 500

Competitors Performance
DICK'S Sporting Goods Inc vs Peers

DICK'S Sporting Goods Inc
Glance View

Company

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DKS vs S&P 500

Stocks Performance DKS vs S&P 500

Performance Gap DKS vs S&P 500

Performance By Year DKS vs S&P 500

Competitors Performance DICK'S Sporting Goods Inc vs Peers

DICK'S Sporting Goods Inc Glance View

Company

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Stocks

DKS

vs

S&P 500

Stocks Performance
DKS vs S&P 500

Performance Gap
DKS vs S&P 500

Performance By Year
DKS vs S&P 500

Competitors Performance
DICK'S Sporting Goods Inc vs Peers

DICK'S Sporting Goods Inc
Glance View