NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - Deutsche Boerse Ag - US6541061031 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to NKE. NKE was compared to 44 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
In the past year NKE had a positive cash flow from operations.
In the past 5 years NKE has always been profitable.
NKE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.93%, NKE belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
The Return On Equity of NKE (32.18%) is better than 90.91% of its industry peers.
The Return On Invested Capital of NKE (16.77%) is better than 86.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 10.71%.
The 3 year average ROIC (16.64%) for NKE is below the current ROIC(16.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.77% |
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
Looking at the Profit Margin, with a value of 9.43%, NKE is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
NKE has a Operating Margin (11.10%) which is comparable to the rest of the industry.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a Gross Margin of 43.82%. This is amonst the worse of the industry: NKE underperforms 86.36% of its industry peers.
NKE'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-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
NKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NKE has less shares outstanding than it did 1 year ago.
NKE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.99 indicates that NKE is not in any danger for bankruptcy at the moment.
The Altman-Z score of NKE (4.99) is better than 81.82% of its industry peers.
The Debt to FCF ratio of NKE is 1.69, which is an excellent value as it means it would take NKE, only 1.69 years of fcf income to pay off all of its debts.
NKE has a Debt to FCF ratio of 1.69. This is amongst the best in the industry. NKE outperforms 86.36% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, NKE perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
Although NKE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.67
WACC10.02%
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 79.55% of its industry peers.
A Quick Ratio of 1.52 indicates that NKE should not have too much problems paying its short term obligations.
NKE has a Quick ratio of 1.52. This is amongst the best in the industry. NKE outperforms 81.82% of its industry peers.
| 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 -42.40% in the last year.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -9.84% in the last year.
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
NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.35% yearly.
The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
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
Based on the Price/Earnings ratio of 35.25, the valuation of NKE can be described as expensive.
NKE's Price/Earnings ratio is a bit more expensive when compared to the industry. NKE is more expensive than 61.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, NKE is valued a bit more expensive.
A Price/Forward Earnings ratio of 39.06 indicates a quite expensive valuation of NKE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE is on the same level as its industry peers.
NKE is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.25 | ||
| Fwd PE | 39.06 |
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 77.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 61.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 17.92 |
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 grow with 21.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)10.45
EPS Next 2Y9.9%
EPS Next 3Y21.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, NKE has a reasonable but not impressive dividend return.
NKE's Dividend Yield is comparable with the industry average which is at 3.24.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of NKE grows each year by 11.20%, which is quite nice.
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.
NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.33%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
FRA:NKE (7/4/2025, 7:00:00 PM)
64.5
-0.42 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.22%
Inst Owner ChangeN/A
Ins Owners0.94%
Ins Owner ChangeN/A
Market Cap95.20B
Analysts72
Price Target64.57 (0.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend1.22
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)-3.46%
PT rev (3m)-24.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.98%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-21.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.25 | ||
| Fwd PE | 39.06 | ||
| P/S | 2.35 | ||
| P/FCF | 21.12 | ||
| P/OCF | 19.16 | ||
| P/B | 8.01 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 17.92 |
EPS(TTM)1.83
EY2.84%
EPS(NY)1.65
Fwd EY2.56%
FCF(TTM)3.05
FCFY4.73%
OCF(TTM)3.37
OCFY5.22%
SpS27.5
BVpS8.05
TBVpS7.77
PEG (NY)N/A
PEG (5Y)10.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.77% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 28.41% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
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 | 0.57 | ||
| 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 | 4.99 |
F-Score4
WACC10.02%
ROIC/WACC1.67
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
EBIT growth 1Y-11.36%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year10.67%
EBIT Next 3Y25.27%
EBIT Next 5Y21.09%
FCF growth 1Y-14.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.12%
OCF growth 3YN/A
OCF growth 5YN/A