NIKE INC -CL B (1NKE.MI) Stock Fundamental Analysis
BIT:1NKE - Euronext Milan - US6541061031 - Common Stock - Currency: EUR
1NKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Textiles, Apparel & Luxury Goods industry. 1NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1NKE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1NKE was profitable.
1NKE had a positive operating cash flow in the past year.
In the past 5 years 1NKE has always been profitable.
Each year in the past 5 years 1NKE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.93%, 1NKE belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
1NKE has a Return On Equity of 32.18%. This is amongst the best in the industry. 1NKE outperforms 92.31% of its industry peers.
1NKE has a Return On Invested Capital of 16.66%. This is amongst the best in the industry. 1NKE outperforms 87.18% of its industry peers.
1NKE had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.66% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
1.3 Margins
With a decent Profit Margin value of 9.43%, 1NKE is doing good in the industry, outperforming 74.36% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NKE has grown nicely.
1NKE has a Operating Margin (11.10%) which is in line with its industry peers.
1NKE's Operating Margin has been stable in the last couple of years.
1NKE has a worse Gross Margin (43.82%) than 87.18% of its industry peers.
In the last couple of years the Gross Margin of 1NKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% |
OM growth 3Y-6.89%
OM growth 5Y1.32%
PM growth 3Y-4.79%
PM growth 5Y1.5%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NKE is creating value.
The number of shares outstanding for 1NKE has been reduced compared to 1 year ago.
1NKE has less shares outstanding than it did 5 years ago.
1NKE has a better debt/assets ratio than last year.
2.2 Solvency
1NKE has an Altman-Z score of 4.29. This indicates that 1NKE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1NKE (4.29) is better than 79.49% of its industry peers.
The Debt to FCF ratio of 1NKE is 1.69, which is an excellent value as it means it would take 1NKE, only 1.69 years of fcf income to pay off all of its debts.
1NKE has a better Debt to FCF ratio (1.69) than 84.62% of its industry peers.
1NKE has a Debt/Equity ratio of 0.57. This is a neutral value indicating 1NKE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, 1NKE perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for 1NKE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.29 |
ROIC/WACC1.72
WACC9.71%
2.3 Liquidity
1NKE has a Current Ratio of 2.19. This indicates that 1NKE is financially healthy and has no problem in meeting its short term obligations.
1NKE's Current ratio of 2.19 is amongst the best of the industry. 1NKE outperforms 84.62% of its industry peers.
A Quick Ratio of 1.52 indicates that 1NKE should not have too much problems paying its short term obligations.
The Quick ratio of 1NKE (1.52) is better than 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
1NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.88%.
1NKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
Looking at the last year, 1NKE shows a decrease in Revenue. The Revenue has decreased by -7.30% in the last year.
The Revenue has been growing slightly by 5.60% on average over the past years.
EPS 1Y (TTM)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
3.2 Future
1NKE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.45% yearly.
1NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.76% yearly.
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue Next Year-11.18%
Revenue Next 2Y-6.4%
Revenue Next 3Y-2.52%
Revenue Next 5Y0.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.04 indicates a rather expensive valuation of 1NKE.
The rest of the industry has a similar Price/Earnings ratio as 1NKE.
Compared to an average S&P500 Price/Earnings ratio of 28.10, 1NKE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 28.89, 1NKE can be considered very expensive at the moment.
1NKE's Price/Forward Earnings is on the same level as the industry average.
1NKE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 28.89 |
4.2 Price Multiples
1NKE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1NKE is more expensive than 66.67% of the companies in the same industry.
1NKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 13.38 |
4.3 Compensation for Growth
1NKE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as 1NKE's earnings are expected to decrease with -10.75% in the coming years.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, 1NKE has a reasonable but not impressive dividend return.
The stock price of 1NKE dropped by -30.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.49, 1NKE pays a bit more dividend than its industry peers.
1NKE's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of 1NKE grows each year by 11.20%, which is quite nice.
Dividend Growth(5Y)11.2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1NKE pays out 50.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
1NKE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.33%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
BIT:1NKE (5/5/2025, 7:00:00 PM)
50.85
+0.25 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap75.05B
Analysts72.44
Price Target67.77 (33.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend1.26
Dividend Growth(5Y)11.2%
DP50.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.71%
Min EPS beat(2)21.88%
Max EPS beat(2)83.55%
EPS beat(4)4
Avg EPS beat(4)39.67%
Min EPS beat(4)19.98%
Max EPS beat(4)83.55%
EPS beat(8)7
Avg EPS beat(8)25.67%
EPS beat(12)11
Avg EPS beat(12)24.12%
EPS beat(16)15
Avg EPS beat(16)26.57%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.86%
Max Revenue beat(2)1.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)8
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)1.3%
PT rev (1m)-15.87%
PT rev (3m)-20.31%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-61.25%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 28.89 | ||
| P/S | 1.78 | ||
| P/FCF | 16.03 | ||
| P/OCF | 14.54 | ||
| P/B | 6.08 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)2.67
EY5.25%
EPS(NY)1.76
Fwd EY3.46%
FCF(TTM)3.17
FCFY6.24%
OCF(TTM)3.5
OCFY6.88%
SpS28.56
BVpS8.37
TBVpS8.07
PEG (NY)N/A
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.66% | ||
| ROICexc | 27.35% | ||
| ROICexgc | 28.22% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
ROICexc(3y)32.19%
ROICexc(5y)31.11%
ROICexgc(3y)33.27%
ROICexgc(5y)32.18%
ROCE(3y)22.6%
ROCE(5y)21.38%
ROICexcg growth 3Y-5.31%
ROICexcg growth 5Y-0.47%
ROICexc growth 3Y-5.19%
ROICexc growth 5Y-0.31%
OM growth 3Y-6.89%
OM growth 5Y1.32%
PM growth 3Y-4.79%
PM growth 5Y1.5%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
F-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 66.63% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.64% | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 4.29 |
F-Score5
WACC9.71%
ROIC/WACC1.72
Cap/Depr(3y)99.75%
Cap/Depr(5y)107.42%
Cap/Sales(3y)1.7%
Cap/Sales(5y)1.91%
Profit Quality(3y)95.15%
Profit Quality(5y)88.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
Revenue Next Year-11.18%
Revenue Next 2Y-6.4%
Revenue Next 3Y-2.52%
Revenue Next 5Y0.76%
EBIT growth 1Y-11.36%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-34.37%
EBIT Next 3Y-7.4%
EBIT Next 5Y4.41%
FCF growth 1Y39.87%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y23.53%
OCF growth 3Y3.73%
OCF growth 5Y4.71%