Dicks Beneish M Score

DKS -  USA Stock  

USD 77.52  7.06  8.35%

This module uses fundamental data of Dicks Sporting to approximate the value of its Beneish M Score. Dicks Sporting M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Dicks Sporting Piotroski F Score and Dicks Sporting Altman Z Score analysis.
  
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As of 05/27/2022, Long Term Debt to Equity is likely to grow to 0.003312, while Total Debt is likely to drop slightly above 2.4 B. Dicks Sporting Cash and Equivalents Turnover is relatively stable at the moment as compared to the past year. Dicks Sporting reported last year Cash and Equivalents Turnover of 33.88. As of 05/27/2022, Cash Flow Per Share is likely to grow to 5.26, while Accrued Expenses Turnover is likely to drop 22.42.
At this time, it appears that Dicks Sporting Goods is a possible manipulator. The earnings manipulation may begin if Dicks Sporting's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Dicks Sporting executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Dicks Sporting's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.04
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.4Focus
Asset Quality1.22Focus
Expense Coverage1.01Focus
Gross Margin Strengs0.94Focus
Accruals Factor1.01Focus
Depreciation Resistance0.88Focus
Net Sales Growth0.82Focus
Financial Leverage Condition0.83Focus

Dicks Sporting Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Dicks Sporting's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues10.1 B12.3 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense2.2 B2.7 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.2 B1.6 B
Way Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion264.2 M322.6 M
Significantly Down
Increasing
Slightly volatile
Total Assets6.5 BB
Way Down
Increasing
Slightly volatile
Investments1.9 M1.9 M
Slightly Down
Decreasing
Slightly volatile
Investments Non Current1.9 M1.9 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net2.4 B3.4 B
Way Down
Increasing
Slightly volatile
Trade and Non Trade Receivables78.2 M68.3 M
Fairly Up
Increasing
Slightly volatile
Total Liabilities4.5 B6.9 B
Way Down
Increasing
Slightly volatile
Current Assets3.6 B5.1 B
Way Down
Increasing
Slightly volatile
Assets Non Current2.9 B3.9 B
Way Down
Increasing
Slightly volatile
Current LiabilitiesB2.7 B
Way Down
Increasing
Slightly volatile
Liabilities Non Current2.5 B4.2 B
Way Down
Increasing
Slightly volatile
Total Debt2.4 B4.5 B
Way Down
Increasing
Slightly volatile
Debt Current253.1 M480.3 M
Way Down
Increasing
Slightly volatile
Debt Non Current2.1 BB
Way Down
Increasing
Slightly volatile
Operating Income1.4 BB
Way Down
Increasing
Slightly volatile
Gross Margin0.360.383
Notably Down
Increasing
Slightly volatile

Dicks Sporting Goods Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Dicks Sporting's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Dicks Sporting in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Dicks Sporting's degree of accounting gimmicks and manipulations.

About Dicks Sporting Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

2.22 Billion

Share
Dicks Sporting Operating Expenses is relatively stable at the moment as compared to the past year. Dicks Sporting reported last year Operating Expenses of 2.68 Billion

About Dicks Sporting Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dicks Sporting Goods's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dicks Sporting using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dicks Sporting Goods based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
DICKS Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. DICKS Sporting Goods, Inc. was incorporated in 1948 and is headquartered in Coraopolis, Pennsylvania. Dicks Sporting operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 17800 people.

Dicks Sporting Investors Sentiment

The influence of Dicks Sporting's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Dicks. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Dicks Sporting Implied Volatility

    
  135.66  
Dicks Sporting's implied volatility exposes the market's sentiment of Dicks Sporting Goods stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dicks Sporting's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dicks Sporting stock will not fluctuate a lot when Dicks Sporting's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Dicks Sporting in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Dicks Sporting's short interest history, or implied volatility extrapolated from Dicks Sporting options trading.

Current Sentiment - DKS

Dicks Sporting Goods Investor Sentiment

Greater number of Macroaxis users are currently bullish on Dicks Sporting Goods. What is your opinion about investing in Dicks Sporting Goods? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Dicks Sporting

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dicks Sporting position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dicks Sporting will appreciate offsetting losses from the drop in the long position's value.

Dicks Sporting Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Dicks Sporting could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dicks Sporting when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dicks Sporting - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dicks Sporting Goods to buy it.
The correlation of Dicks Sporting is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dicks Sporting moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dicks Sporting Goods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dicks Sporting can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Dicks Sporting Piotroski F Score and Dicks Sporting Altman Z Score analysis. Note that the Dicks Sporting Goods information on this page should be used as a complementary analysis to other Dicks Sporting's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running Dicks Sporting Goods price analysis, check to measure Dicks Sporting's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dicks Sporting is operating at the current time. Most of Dicks Sporting's value examination focuses on studying past and present price action to predict the probability of Dicks Sporting's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Dicks Sporting's price. Additionally, you may evaluate how the addition of Dicks Sporting to your portfolios can decrease your overall portfolio volatility.
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Is Dicks Sporting's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dicks Sporting. If investors know Dicks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dicks Sporting listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Dicks Sporting Goods is measured differently than its book value, which is the value of Dicks that is recorded on the company's balance sheet. Investors also form their own opinion of Dicks Sporting's value that differs from its market value or its book value, called intrinsic value, which is Dicks Sporting's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dicks Sporting's market value can be influenced by many factors that don't directly affect Dicks Sporting's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dicks Sporting's value and its price as these two are different measures arrived at by different means. Investors typically determine Dicks Sporting value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dicks Sporting's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.