NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
56.68 EUR
+0.18 (+0.32%)
NKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years NKE has been profitable.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.75%, NKE is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
NKE has a Return On Equity of 21.50%. This is amongst the best in the industry. NKE outperforms 82.69% of its industry peers.
The Return On Invested Capital of NKE (10.87%) is better than 61.54% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 11.67%.
The last Return On Invested Capital (10.87%) 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 | 7.75% | ||
| ROE | 21.5% | ||
| ROIC | 10.87% |
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
With a decent Profit Margin value of 6.23%, NKE is doing good in the industry, outperforming 65.38% of the companies in the same industry.
NKE's Profit Margin has been stable in the last couple of years.
NKE's Operating Margin of 7.36% is in line compared to the rest of the industry. NKE outperforms 42.31% of its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a worse Gross Margin (41.94%) than 84.62% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% |
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
Compared to 5 years ago, NKE has less shares outstanding
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.38 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE has a better Altman-Z score (4.38) than 76.92% of its industry peers.
NKE has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NKE would need 2.66 years to pay back of all of its debts.
NKE has a Debt to FCF ratio of 2.66. This is in the better half of the industry: NKE outperforms 78.85% of its industry peers.
NKE has a Debt/Equity ratio of 0.59. This is a neutral value indicating NKE is somewhat dependend on debt financing.
NKE has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.97
WACC11.16%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
The Current ratio of NKE (2.19) is better than 78.85% of its industry peers.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
NKE's Quick ratio of 1.45 is fine compared to the rest of the industry. NKE outperforms 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased strongly by -44.44% in the last year.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.37% yearly.
The Revenue has decreased by -7.14% in the past year.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
3.2 Future
NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.96% yearly.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-22.13%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
EPS Next 5Y16.96%
Revenue Next Year1.77%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.94, NKE can be considered very expensive at the moment.
NKE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.49, NKE is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 26.09, the valuation of NKE can be described as expensive.
NKE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, NKE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 26.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, NKE is valued a bit more expensive than 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.43 | ||
| EV/EBITDA | 22.49 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
A more expensive valuation may be justified as NKE's earnings are expected to grow with 12.61% in the coming years.
PEG (NY)N/A
PEG (5Y)10.07
EPS Next 2Y8.23%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.50%.
Compared to an average industry Dividend Yield of 3.00, NKE pays a bit more dividend than its industry peers.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
80.59% of the earnings are spent on dividend by NKE. This is not a sustainable payout ratio.
The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.59%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
FRA:NKE (12/8/2025, 11:59:55 AM)
56.68
+0.18 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap83.78B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75.45
Price Target72.96 (28.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend1.33
Dividend Growth(5Y)10.7%
DP80.59%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.76%
Min EPS beat(2)7.49%
Max EPS beat(2)78.04%
EPS beat(4)4
Avg EPS beat(4)47.74%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)33.55%
EPS beat(12)11
Avg EPS beat(12)30.36%
EPS beat(16)15
Avg EPS beat(16)26.66%
Revenue beat(2)2
Avg Revenue beat(2)3.98%
Min Revenue beat(2)2.46%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)2.55%
Min Revenue beat(4)0.86%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)1.35%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)-0.29%
PT rev (3m)6.1%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-25.87%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 26.09 | ||
| P/S | 2.1 | ||
| P/FCF | 32.43 | ||
| P/OCF | 27.67 | ||
| P/B | 7.24 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 22.49 |
EPS(TTM)1.67
EY2.95%
EPS(NY)2.17
Fwd EY3.83%
FCF(TTM)1.75
FCFY3.08%
OCF(TTM)2.05
OCFY3.61%
SpS26.98
BVpS7.82
TBVpS7.53
PEG (NY)N/A
PEG (5Y)10.07
Graham Number17.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 21.5% | ||
| ROCE | 12.94% | ||
| ROIC | 10.87% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 16.55% | ||
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% | ||
| FCFM | 6.48% |
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%
ROICexgc growth 3Y-18.4%
ROICexgc 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 63.83% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.36% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.38 |
F-Score4
WACC11.16%
ROIC/WACC0.97
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)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
EPS Next Y-22.13%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
Revenue Next Year1.77%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year4.49%
EBIT Next 3Y19.16%
EBIT Next 5Y19.88%
FCF growth 1Y-32.53%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-34.92%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%
NIKE INC -CL B / NKE.DE FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to NKE.DE.
What is the valuation status for NKE stock?
ChartMill assigns a valuation rating of 2 / 10 to NIKE INC -CL B (NKE.DE). This can be considered as Overvalued.
How profitable is NIKE INC -CL B (NKE.DE) stock?
NIKE INC -CL B (NKE.DE) has a profitability rating of 6 / 10.
What is the earnings growth outlook for NIKE INC -CL B?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE.DE) is expected to decline by -22.13% in the next year.
Can you provide the dividend sustainability for NKE stock?
The dividend rating of NIKE INC -CL B (NKE.DE) is 5 / 10 and the dividend payout ratio is 80.59%.