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 42 industry peers in the Textiles, Apparel & Luxury Goods industry. 1NKE gets an excellent profitability rating and is at the same time showing great financial health properties. 1NKE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
1NKE had positive earnings in the past year.
1NKE had a positive operating cash flow in the past year.
1NKE had positive earnings in each of the past 5 years.
In the past 5 years 1NKE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1NKE (11.93%) is better than 80.95% of its industry peers.
1NKE has a Return On Equity of 32.18%. This is amongst the best in the industry. 1NKE outperforms 88.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.66%, 1NKE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
1NKE had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 10.55%.
| 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
1NKE has a better Profit Margin (9.43%) than 69.05% of its industry peers.
In the last couple of years the Profit Margin of 1NKE has grown nicely.
1NKE's Operating Margin of 11.10% is in line compared to the rest of the industry. 1NKE outperforms 52.38% of its industry peers.
In the last couple of years the Operating Margin of 1NKE has remained more or less at the same level.
1NKE's Gross Margin of 43.82% is on the low side compared to the rest of the industry. 1NKE is outperformed by 85.71% of its industry peers.
1NKE's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NKE is creating value.
1NKE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1NKE has been reduced compared to 5 years ago.
The debt/assets ratio for 1NKE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.45 indicates that 1NKE is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NKE (4.45) is better than 80.95% of its industry peers.
1NKE has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.69, 1NKE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that 1NKE is somewhat dependend on debt financing.
1NKE has a Debt to Equity ratio (0.57) which is comparable to the rest of the 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 | 4.45 |
ROIC/WACC1.66
WACC10.04%
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 has a Current ratio of 2.19. This is amongst the best in the industry. 1NKE outperforms 83.33% of its industry peers.
A Quick Ratio of 1.52 indicates that 1NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.52, 1NKE belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for 1NKE have decreased strongly by -10.88% in the last year.
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
Based on estimates for the next years, 1NKE will show a small growth in Earnings Per Share. The EPS will grow by 3.45% on average per year.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-42.62%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
EPS Next 5Y3.45%
Revenue Next Year-11.16%
Revenue Next 2Y-6.42%
Revenue Next 3Y-2.53%
Revenue Next 5Y0.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 20.39, 1NKE is valued on the expensive side.
1NKE's Price/Earnings ratio is in line with the industry average.
1NKE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
1NKE is valuated quite expensively with a Price/Forward Earnings ratio of 31.46.
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 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 31.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NKE indicates a slightly more expensive valuation: 1NKE is more expensive than 73.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1NKE is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
The decent profitability rating of 1NKE may justify a higher PE ratio.
A cheap valuation may be justified as 1NKE's earnings are expected to decrease with -11.19% in the coming years.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
5. Dividend
5.1 Amount
1NKE has a Yearly Dividend Yield of 2.67%.
In the last 3 months the price of 1NKE has falen by -25.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.44, 1NKE pays a bit more dividend than its industry peers.
1NKE's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
50.33% of the earnings are spent on dividend by 1NKE. This is a bit on the high side, but may be sustainable.
The dividend of 1NKE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.33%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
BIT:1NKE (5/28/2025, 7:00:00 PM)
54.85
+2 (+3.78%)
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 Cap80.96B
Analysts72.44
Price Target66.87 (21.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)-14.45%
PT rev (3m)-21.37%
EPS NQ rev (1m)5.04%
EPS NQ rev (3m)-58.91%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 31.46 | ||
| P/S | 1.91 | ||
| P/FCF | 17.2 | ||
| P/OCF | 15.6 | ||
| P/B | 6.52 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 14.39 |
EPS(TTM)2.69
EY4.9%
EPS(NY)1.74
Fwd EY3.18%
FCF(TTM)3.19
FCFY5.82%
OCF(TTM)3.52
OCFY6.41%
SpS28.72
BVpS8.41
TBVpS8.11
PEG (NY)N/A
PEG (5Y)2.39
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 | 4.45 |
F-Score5
WACC10.04%
ROIC/WACC1.66
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-42.62%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
Revenue Next Year-11.16%
Revenue Next 2Y-6.42%
Revenue Next 3Y-2.53%
Revenue Next 5Y0.76%
EBIT growth 1Y-11.36%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-33.75%
EBIT Next 3Y-8.92%
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%