Uncovering Dividend Opportunities with NYSE:NKE.

Our stock screener has spotted NIKE INC -CL B (NYSE:NKE) as a good dividend stock with solid fundamentals. NYSE:NKE shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NYSE:NKE

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:NKE scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.81, NKE pays a bit more dividend than its industry peers.
• On average, the dividend of NKE grows each year by 11.10%, which is quite nice.
• NKE has paid a dividend for at least 10 years, which is a reliable track record.
• NKE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 39.61% of the earnings are spent on dividend by NKE. This is a low number and sustainable payout ratio.
• The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:NKE has earned a 7 out of 10:

• NKE has an Altman-Z score of 6.40. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
• NKE has a better Altman-Z score (6.40) than 88.00% of its industry peers.
• NKE has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
• NKE's Debt to FCF ratio of 1.42 is fine compared to the rest of the industry. NKE outperforms 70.00% of its industry peers.
• Even though the debt/equity ratio score it not favorable for NKE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• A Current Ratio of 2.74 indicates that NKE has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.74, NKE is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.85, NKE is in the better half of the industry, outperforming 76.00% of the companies in the same industry.

Exploring NYSE:NKE's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:NKE was assigned a score of 8 for profitability:

• NKE has a Return On Assets of 14.24%. This is amongst the best in the industry. NKE outperforms 92.00% of its industry peers.
• NKE has a better Return On Equity (37.46%) than 96.00% of its industry peers.
• NKE has a better Return On Invested Capital (18.55%) than 92.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for NKE is significantly above the industry average of 10.13%.
• NKE has a better Profit Margin (10.28%) than 90.00% of its industry peers.
• In the last couple of years the Profit Margin of NKE has grown nicely.
• Looking at the Operating Margin, with a value of 11.76%, NKE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of NKE contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.