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 41 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. NKE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
In the past year NKE had a positive cash flow from operations.
NKE had positive earnings in each of the past 5 years.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
NKE has a better Return On Assets (11.93%) than 82.93% of its industry peers.
NKE has a better Return On Equity (32.18%) than 90.24% of its industry peers.
With an excellent Return On Invested Capital value of 16.66%, NKE belongs to the best of the industry, outperforming 85.37% 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 10.00%.
| 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
NKE's Profit Margin of 9.43% is fine compared to the rest of the industry. NKE outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of NKE has grown nicely.
With a Operating Margin value of 11.10%, NKE perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a worse Gross Margin (43.82%) than 87.80% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NKE is creating value.
The number of shares outstanding for NKE has been reduced compared to 1 year ago.
Compared to 5 years ago, NKE has less shares outstanding
NKE has a better debt/assets ratio than last year.
2.2 Solvency
NKE has an Altman-Z score of 4.46. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NKE (4.46) is better than 78.05% 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.
With an excellent Debt to FCF ratio value of 1.69, NKE belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
NKE has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: NKE outperforms 48.78% 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 | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.64
WACC10.15%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
NKE's Current ratio of 2.19 is fine compared to the rest of the industry. NKE outperforms 78.05% of its industry peers.
NKE has a Quick Ratio of 1.52. This is a normal value and indicates that NKE is financially healthy and should not expect problems in meeting its short term obligations.
NKE's Quick ratio of 1.52 is fine compared to the rest of the industry. NKE outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.88%.
NKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -7.30% in the last year.
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-42.62%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
EPS Next 5Y3.45%
Revenue Next Year-11.16%
Revenue Next 2Y-6.42%
Revenue Next 3Y-2.53%
Revenue Next 5Y0.76%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NKE is valuated rather expensively with a Price/Earnings ratio of 20.71.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.46, NKE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 31.88, the valuation of NKE can be described as expensive.
NKE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NKE to the average of the S&P500 Index (22.30), we can say NKE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 31.88 |
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 73.17% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NKE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.43 | ||
| EV/EBITDA | 14.45 |
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 -11.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.60%.
The stock price of NKE dropped by -23.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.39, NKE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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-27.58%
EPS Next 3Y-11.19%
FRA:NKE (6/4/2025, 4:33:43 PM)
55.08
+0.53 (+0.97%)
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 Cap81.30B
Analysts72.44
Price Target66.89 (21.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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)-1.02%
PT rev (3m)-21.35%
EPS NQ rev (1m)5.53%
EPS NQ rev (3m)-58.91%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 31.88 | ||
| P/S | 1.94 | ||
| P/FCF | 17.43 | ||
| P/OCF | 15.81 | ||
| P/B | 6.61 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)2.66
EY4.83%
EPS(NY)1.73
Fwd EY3.14%
FCF(TTM)3.16
FCFY5.74%
OCF(TTM)3.48
OCFY6.32%
SpS28.45
BVpS8.33
TBVpS8.04
PEG (NY)N/A
PEG (5Y)2.43
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 | 4.46 |
F-Score5
WACC10.15%
ROIC/WACC1.64
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-42.62%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
Revenue Next Year-11.16%
Revenue Next 2Y-6.42%
Revenue Next 3Y-2.53%
Revenue Next 5Y0.76%
EBIT growth 1Y-11.36%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-33.75%
EBIT Next 3Y-8.92%
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%