NIKE INC -CL B (1NKE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NKE - US6541061031 - Common Stock
53.42 EUR
-1.17 (-2.14%)
Taking everything into account, 1NKE scores 5 out of 10 in our fundamental rating. 1NKE was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of 1NKE get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, 1NKE is valued expensive at the moment.
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.
- Each year in the past 5 years 1NKE had a positive operating cash flow.
1.2 Ratios
- 1NKE has a better Return On Assets (6.68%) than 67.31% of its industry peers.
- 1NKE has a better Return On Equity (17.92%) than 65.38% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.77%, 1NKE is in line with its industry, outperforming 51.92% of the companies in the same industry.
- 1NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 11.64%.
- The 3 year average ROIC (16.64%) for 1NKE is well above the current ROIC(9.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 17.92% | ||
| ROIC | 9.77% |
ROA(3y)12.42%
ROA(5y)13.49%
ROE(3y)33.36%
ROE(5y)36.9%
ROIC(3y)16.64%
ROIC(5y)18.07%
1.3 Margins
- 1NKE has a Profit Margin (5.43%) which is comparable to the rest of the industry.
- 1NKE's Profit Margin has been stable in the last couple of years.
- 1NKE has a Operating Margin of 6.54%. This is comparable to the rest of the industry: 1NKE outperforms 40.38% 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 has a worse Gross Margin (41.13%) than 88.46% 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 | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% |
OM growth 3Y-17.6%
OM growth 5Y-0.82%
PM growth 3Y-18.72%
PM growth 5Y0.48%
GM growth 3Y-2.41%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1NKE is creating some value.
- The number of shares outstanding for 1NKE has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1NKE has less shares outstanding
- Compared to 1 year ago, 1NKE has an improved debt to assets ratio.
2.2 Solvency
- 1NKE has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as 1NKE would need 3.24 years to pay back of all of its debts.
- The Debt to FCF ratio of 1NKE (3.24) is better than 61.54% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that 1NKE is not too dependend on debt financing.
- 1NKE has a better Debt to Equity ratio (0.50) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC11.28%
2.3 Liquidity
- A Current Ratio of 2.06 indicates that 1NKE has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.06, 1NKE is doing good in the industry, outperforming 71.15% of the companies in the same industry.
- 1NKE has a Quick Ratio of 1.40. This is a normal value and indicates that 1NKE is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of 1NKE (1.40) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- 1NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.85%.
- Measured over the past 5 years, 1NKE shows a small growth in Earnings Per Share. The EPS has been growing by 3.37% on average per year.
- Looking at the last year, 1NKE shows a decrease in Revenue. The Revenue has decreased by -5.03% in the last year.
- 1NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
EPS 1Y (TTM)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
3.2 Future
- Based on estimates for the next years, 1NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.53% on average per year.
- 1NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y-26.19%
EPS Next 2Y4.97%
EPS Next 3Y9.44%
EPS Next 5Y14.53%
Revenue Next Year1.63%
Revenue Next 2Y2.76%
Revenue Next 3Y3.24%
Revenue Next 5Y5.09%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 37.62 indicates a quite expensive valuation of 1NKE.
- 1NKE's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1NKE is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 26.87, 1NKE can be considered very expensive at the moment.
- 1NKE's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of 1NKE to the average of the S&P500 Index (25.83), we can say 1NKE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.62 | ||
| Fwd PE | 26.87 |
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 75.00% of the companies in the same industry.
- 1NKE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1NKE is more expensive than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.2 | ||
| EV/EBITDA | 24.38 |
4.3 Compensation for Growth
- 1NKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.16
EPS Next 2Y4.97%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
- 1NKE has a Yearly Dividend Yield of 2.51%.
- Compared to an average industry Dividend Yield of 1.99, 1NKE pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1NKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
- On average, the dividend of 1NKE grows each year by 10.70%, which is quite nice.
Dividend Growth(5Y)10.7%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 94.06% of the earnings are spent on dividend by 1NKE. This is not a sustainable payout ratio.
- The dividend of 1NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP94.06%
EPS Next 2Y4.97%
EPS Next 3Y9.44%
NIKE INC -CL B / 1NKE.MI FAQ
What is the fundamental rating for 1NKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1NKE.MI.
What is the valuation status of NIKE INC -CL B (1NKE.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to NIKE INC -CL B (1NKE.MI). This can be considered as Overvalued.
What is the profitability of 1NKE stock?
NIKE INC -CL B (1NKE.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1NKE stock?
The Price/Earnings (PE) ratio for NIKE INC -CL B (1NKE.MI) is 37.62 and the Price/Book (PB) ratio is 6.71.
Can you provide the dividend sustainability for 1NKE stock?
The dividend rating of NIKE INC -CL B (1NKE.MI) is 5 / 10 and the dividend payout ratio is 94.06%.