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 43 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making NKE a very profitable company, without any liquidiy or solvency issues. NKE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
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 better Return On Assets (8.80%) than 81.40% of its industry peers.
With an excellent Return On Equity value of 24.36%, NKE belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
NKE's Return On Invested Capital of 11.95% is fine compared to the rest of the industry. NKE outperforms 79.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 11.54%.
The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(11.95%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 6.95% is fine compared to the rest of the industry. NKE outperforms 67.44% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 7.99%, NKE perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
NKE has a Gross Margin of 42.73%. This is amonst the worse of the industry: NKE underperforms 86.05% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NKE 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
NKE has an Altman-Z score of 4.82. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.82, NKE is doing good in the industry, outperforming 79.07% of the companies in the same industry.
NKE has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as NKE would need 2.44 years to pay back of all of its debts.
The Debt to FCF ratio of NKE (2.44) is better than 79.07% of its industry peers.
NKE has a Debt/Equity ratio of 0.60. This is a neutral value indicating NKE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, NKE is in line with its industry, outperforming 53.49% of the companies in the same 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 | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.41
WACC8.46%
2.3 Liquidity
A Current Ratio of 2.21 indicates that NKE has no problem at all paying its short term obligations.
NKE has a Current ratio of 2.21. This is in the better half of the industry: NKE outperforms 79.07% of its industry peers.
A Quick Ratio of 1.50 indicates that NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, NKE belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
| 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%.
Measured over the past 5 years, NKE 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, NKE shows a decrease in Revenue. The Revenue has decreased by -9.84% in the last year.
Measured over the past years, NKE shows a small growth in Revenue. The Revenue has been growing by 4.36% on average per year.
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 19.35% on average per year.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 4.29% on average per year.
EPS Next Y-22.39%
EPS Next 2Y6.67%
EPS Next 3Y13.05%
EPS Next 5Y19.35%
Revenue Next Year-0.23%
Revenue Next 2Y2.38%
Revenue Next 3Y3.24%
Revenue Next 5Y4.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 ratio is a bit more expensive when compared to the industry. NKE is more expensive than 67.44% of the companies in the same industry.
NKE is valuated rather expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 43.85, the valuation of NKE can be described as expensive.
Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 62.79% of the companies in the same industry.
NKE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 43.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 76.74% of the companies are valued more cheaply.
NKE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. NKE is more expensive than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 23.79 |
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 13.05% in the coming years.
PEG (NY)N/A
PEG (5Y)10.07
EPS Next 2Y6.67%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.35, NKE has a dividend in line with its industry peers.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
On average, the dividend of NKE grows each year by 10.70%, which is quite nice.
Dividend Growth(5Y)10.7%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
71.45% 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.
DP71.45%
EPS Next 2Y6.67%
EPS Next 3Y13.05%
FRA:NKE (8/8/2025, 7:00:00 PM)
63.13
-0.93 (-1.45%)
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 Cap93.24B
Analysts71.82
Price Target66.68 (5.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.35
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)3.26%
PT rev (3m)-1.32%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-26.33%
EPS NY rev (1m)-13.84%
EPS NY rev (3m)-16.02%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 43.85 | ||
| P/S | 2.34 | ||
| P/FCF | 33.22 | ||
| P/OCF | 29.36 | ||
| P/B | 8.22 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 23.79 |
EPS(TTM)1.86
EY2.95%
EPS(NY)1.44
Fwd EY2.28%
FCF(TTM)1.9
FCFY3.01%
OCF(TTM)2.15
OCFY3.41%
SpS26.93
BVpS7.68
TBVpS7.39
PEG (NY)N/A
PEG (5Y)10.07
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 | 4.82 |
F-Score4
WACC8.46%
ROIC/WACC1.41
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-22.39%
EPS Next 2Y6.67%
EPS Next 3Y13.05%
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-0.23%
Revenue Next 2Y2.38%
Revenue Next 3Y3.24%
Revenue Next 5Y4.29%
EBIT growth 1Y-44.66%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year10.67%
EBIT Next 3Y25.27%
EBIT Next 5Y21.09%
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%