ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dick's Sporting Goods's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 11.34%.
As of today (2026-06-25), Dick's Sporting Goods's WACC % is 10.94%. Dick's Sporting Goods's ROIC % is 9.87% (calculated using TTM income statement data).
Dick's Sporting Goods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Dick's Sporting Goods's WACC % is 10.94%. Dick's Sporting Goods's ROIC % is 9.87% (calculated using TTM income statement data).
Dick's Sporting Goods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Dick's Sporting Goods's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dick's Sporting Goods ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Dick's Sporting Goods's ROIC % distribution charts can be found below:
* The bar in red indicates where Dick's Sporting Goods's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dick's Sporting Goods (MEX:DKS) has a ROIC % of 11.34% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Dick's Sporting Goods and its competitors.
Is Dick's Sporting Goods' ROIC % too high?
Dick's Sporting Goods' current ROIC % is 11.34%. The Retail - Cyclical industry median ROIC % is 4.37. Dick's Sporting Goods' value of 11.34% is 159.5% above this industry median. Overall, Dick's Sporting Goods has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Dick's Sporting Goods' ROIC % compare to ULTA and WSM?
Dick's Sporting Goods' ROIC % of 11.34% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.37. Dick's Sporting Goods' value of 11.34% is 159.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.37, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dick's Sporting Goods's current ROIC % of 11.34% is 159.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Dick's Sporting Goods and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dick's Sporting Goods's current ROIC % is 11.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dick's Sporting Goods stock overvalued right now?
Dick's Sporting Goods (MEX:DKS) has a current ROIC % of 11.34%. The stock's GF Value™ is MXN4,017.62, compared to a current price of MXN3,450.27 — trading 14.1% below its estimated fair value. The current ROIC % is 11.34% and 159.5% above the Retail - Cyclical industry median of 4.37. Dick's Sporting Goods' overall GF Score™ is 96/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Dick's Sporting Goods (MEX:DKS), the current ROIC % is 11.34% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dick's Sporting Goods (MEX:DKS) Overvalued in 2026?
Based on GuruFocus' analysis, Dick's Sporting Goods stock appears to be undervalued.
The current stock price of MXN3,450.27 is trading 14.1% below its estimated GF Value™ of MXN4,017.62.
Key valuation signals for MEX:DKS:
ROIC %: 11.34%
GF Value™: MXN4,017.62 vs. price of MXN3,450.27 (14.1% below fair value)
Industry Position: 159.5% above the Retail - Cyclical median
No single metric tells the full story. See the MEX:DKS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dick's Sporting Goods is a retailer that offers sports and outdoor apparel, footwear, and equipment online and in physical stores. The company's legacy business includes more than 700 stores under its own name, more than 110 Golf Galaxy golf specialty stores, and about 50 outlet stores. In September 2025, Dick's acquired multinational retailer Foot Locker. With this move, Dick's added about 2,600 stores under the Foot Locker, Kids Foot Locker, Champs Sports, atmos, and WSS nameplates in North America, the Asia-Pacific, and EMEA—Europe, the Middle East, and Africa. The combined Dick's and Foot Locker has an annual sales base of more than $22 billion. Based in the Pittsburgh area, Dick's was founded in 1948 by the father of current executive chair and controlling shareholder Edward Stack.
96GF Score
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