NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - Deutsche Boerse Ag - US6541061031 - Common Stock - Currency: EUR
NKE 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. NKE gets an excellent profitability rating and is at the same time showing great financial health properties. NKE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
NKE had a positive operating cash flow in the past year.
In the past 5 years NKE has always been profitable.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
NKE's Return On Assets of 11.93% is amongst the best of the industry. NKE outperforms 84.62% of its industry peers.
With an excellent Return On Equity value of 32.18%, NKE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.66%, NKE belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
NKE 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
The Profit Margin of NKE (9.43%) is better than 74.36% of its industry peers.
NKE's Profit Margin has improved in the last couple of years.
NKE's Operating Margin of 11.10% is in line compared to the rest of the industry. NKE outperforms 56.41% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
The Gross Margin of NKE (43.82%) is worse than 87.18% of its industry peers.
In the last couple of years the Gross Margin of NKE 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
NKE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NKE has less shares outstanding
The number of shares outstanding for NKE has been reduced compared to 5 years ago.
The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.28 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE has a better Altman-Z score (4.28) than 79.49% of its industry peers.
NKE 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.
NKE has a Debt to FCF ratio of 1.69. This is amongst the best in the industry. NKE outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
NKE 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 NKE, 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 | 4.28 |
ROIC/WACC1.72
WACC9.67%
2.3 Liquidity
NKE has a Current Ratio of 2.19. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
NKE's Current ratio of 2.19 is amongst the best of the industry. NKE outperforms 84.62% of its industry peers.
A Quick Ratio of 1.52 indicates that NKE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.52, NKE belongs to the best of the industry, outperforming 82.05% 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 NKE have decreased strongly by -10.88% in the last year.
Measured over the past years, NKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.53% on average per year.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -7.30%.
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
The Earnings Per Share is expected to grow by 3.45% on average over the next years.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 0.76% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.16, the valuation of NKE can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NKE.
The average S&P500 Price/Earnings ratio is at 23.99. NKE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 29.13, NKE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.35. NKE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 29.13 |
4.2 Price Multiples
NKE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NKE is more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.16 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
NKE's earnings are expected to decrease with -10.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.82%.
In the last 3 months the price of NKE has falen by -24.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NKE's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.44, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.20%!
Dividend Growth(5Y)11.2%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NKE pays out 50.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NKE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.33%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
FRA:NKE (5/7/2025, 7:00:00 PM)
51.35
+0.73 (+1.44%)
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 Cap75.79B
Analysts72.44
Price Target67.57 (31.59%)
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 Years6
Div Non Decr Years6
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)-16.06%
PT rev (3m)-20.55%
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 | 19.16 | ||
| Fwd PE | 29.13 | ||
| P/S | 1.8 | ||
| P/FCF | 16.16 | ||
| P/OCF | 14.66 | ||
| P/B | 6.13 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)2.68
EY5.22%
EPS(NY)1.76
Fwd EY3.43%
FCF(TTM)3.18
FCFY6.19%
OCF(TTM)3.5
OCFY6.82%
SpS28.61
BVpS8.38
TBVpS8.08
PEG (NY)N/A
PEG (5Y)2.25
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 | 4.28 |
F-Score5
WACC9.67%
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%