NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - US6541061031 - Common Stock
62.98 EUR
+0.31 (+0.49%)
Overall NKE gets a fundamental rating of 6 out of 10. We evaluated NKE against 46 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, NKE is valued expensive at the moment.
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.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
NKE has a Return On Assets of 8.80%. This is amongst the best in the industry. NKE outperforms 80.43% of its industry peers.
NKE's Return On Equity of 24.36% is amongst the best of the industry. NKE outperforms 82.61% of its industry peers.
With a decent Return On Invested Capital value of 11.95%, NKE is doing good in the industry, outperforming 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 11.06%.
The last Return On Invested Capital (11.95%) for NKE is well below the 3 year average (16.64%), which needs to be investigated, but indicates that NKE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 24.36% | ||
| ROIC | 11.95% |
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
NKE has a Profit Margin of 6.95%. This is in the better half of the industry: NKE outperforms 65.22% of its industry peers.
In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
NKE's Operating Margin of 7.99% is in line compared to the rest of the industry. NKE outperforms 45.65% 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 (42.73%) is worse than 82.61% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.99% | ||
| PM (TTM) | 6.95% | ||
| GM | 42.73% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NKE is still creating some 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.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.78 indicates that NKE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.78, NKE belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
The Debt to FCF ratio of NKE is 2.44, which is a good value as it means it would take NKE, 2.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.44, NKE is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
NKE has a Debt/Equity ratio of 0.60. This is a neutral value indicating NKE is somewhat dependend on debt financing.
NKE's Debt to Equity ratio of 0.60 is in line compared to the rest of the industry. NKE outperforms 47.83% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.17
WACC10.2%
2.3 Liquidity
NKE has a Current Ratio of 2.21. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
NKE's Current ratio of 2.21 is fine compared to the rest of the industry. NKE outperforms 71.74% of its industry peers.
NKE has a Quick Ratio of 1.50. This is a normal value and indicates that NKE is financially healthy and should not expect problems in meeting its short term obligations.
NKE has a better Quick ratio (1.50) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.40%.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -9.84%.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
3.2 Future
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
EPS Next 5Y16.32%
Revenue Next Year-0.13%
Revenue Next 2Y2.53%
Revenue Next 3Y3.39%
Revenue Next 5Y4.4%
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
NKE is valuated quite expensively with a Price/Earnings ratio of 34.23.
NKE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.03. NKE is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 44.07, which means the current valuation is very expensive for NKE.
NKE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NKE is more expensive than 63.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, NKE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 44.07 |
4.2 Price Multiples
73.91% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
65.22% of the companies in the same industry are cheaper than NKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.43 | ||
| EV/EBITDA | 23.46 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.15
EPS Next 2Y6.8%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.05, NKE has a dividend in line with its industry peers.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
Dividend Growth(5Y)10.7%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NKE pays out 71.45% of its income as dividend. This is not a sustainable payout ratio.
NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.45%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
FRA:NKE (9/10/2025, 7:00:00 PM)
62.98
+0.31 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.88%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap93.02B
Analysts72.09
Price Target68.76 (9.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.32
Dividend Growth(5Y)10.7%
DP71.45%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.52%
Min EPS beat(2)7.49%
Max EPS beat(2)83.55%
EPS beat(4)4
Avg EPS beat(4)36.55%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)26.91%
EPS beat(12)11
Avg EPS beat(12)23.86%
EPS beat(16)15
Avg EPS beat(16)21.98%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.38%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)0.8%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)8
Avg Revenue beat(12)1.09%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)3.12%
PT rev (3m)2.81%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-25.53%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-14.68%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 44.07 | ||
| P/S | 2.36 | ||
| P/FCF | 33.43 | ||
| P/OCF | 29.54 | ||
| P/B | 8.27 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 23.46 |
EPS(TTM)1.84
EY2.92%
EPS(NY)1.43
Fwd EY2.27%
FCF(TTM)1.88
FCFY2.99%
OCF(TTM)2.13
OCFY3.39%
SpS26.7
BVpS7.62
TBVpS7.33
PEG (NY)N/A
PEG (5Y)10.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 24.36% | ||
| ROCE | 14.23% | ||
| ROIC | 11.95% | ||
| ROICexc | 18.43% | ||
| ROICexgc | 18.99% | ||
| OM | 7.99% | ||
| PM (TTM) | 6.95% | ||
| GM | 42.73% | ||
| FCFM | 7.06% |
ROA(3y)12.42%
ROA(5y)13.49%
ROE(3y)33.36%
ROE(5y)36.9%
ROIC(3y)16.64%
ROIC(5y)18.07%
ROICexc(3y)27.29%
ROICexc(5y)31.4%
ROICexgc(3y)28.17%
ROICexgc(5y)32.46%
ROCE(3y)19.82%
ROCE(5y)21.52%
ROICexcg growth 3Y-18.4%
ROICexcg growth 5Y0.36%
ROICexc growth 3Y-18.27%
ROICexc growth 5Y0.46%
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%
F-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 53.22% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 9.52 | ||
| Cash Conversion | 82% | ||
| Profit Quality | 101.52% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.78 |
F-Score4
WACC10.2%
ROIC/WACC1.17
Cap/Depr(3y)87.41%
Cap/Depr(5y)87.93%
Cap/Sales(3y)1.47%
Cap/Sales(5y)1.52%
Profit Quality(3y)104.57%
Profit Quality(5y)98.22%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
EPS Next Y-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
EPS Next 5Y16.32%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-0.13%
Revenue Next 2Y2.53%
Revenue Next 3Y3.39%
Revenue Next 5Y4.4%
EBIT growth 1Y-44.66%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.98%
EBIT Next 3Y19.07%
EBIT Next 5Y18.89%
FCF growth 1Y-50.61%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-50.22%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%