NIKE INC -CL B (NKE) Stock Fundamental Analysis
NYSE:NKE - New York Stock Exchange, Inc. - US6541061031 - Common Stock - Currency: USD
Taking everything into account, NKE scores 6 out of 10 in our fundamental rating. NKE was compared to 48 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. NKE does not seem to be growing, but still is valued expensively.
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.
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 85.42% of its industry peers.
With an excellent Return On Equity value of 32.18%, NKE belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
The Return On Invested Capital of NKE (16.66%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 13.46%.
| 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
Looking at the Profit Margin, with a value of 9.43%, NKE is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
In the last couple of years the Profit Margin of NKE has grown nicely.
NKE has a Operating Margin of 11.10%. This is in the better half of the industry: NKE outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
NKE's Gross Margin of 43.82% is on the low side compared to the rest of the industry. NKE is outperformed by 64.58% 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
NKE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NKE has less shares outstanding than it did 1 year ago.
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
NKE has an Altman-Z score of 4.38. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NKE (4.38) is better than 77.08% 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's Debt to FCF ratio of 1.69 is fine compared to the rest of the industry. NKE outperforms 79.17% of its industry peers.
NKE has a Debt/Equity ratio of 0.57. This is a neutral value indicating NKE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, NKE is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
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 | 4.38 |
ROIC/WACC1.64
WACC10.14%
2.3 Liquidity
NKE has a Current Ratio of 2.19. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.19, NKE is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that NKE should not have too much problems paying its short term obligations.
NKE's Quick ratio of 1.52 is fine compared to the rest of the industry. NKE outperforms 70.83% 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 -10.88% in the last year.
NKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
The Revenue has decreased by -7.30% in the past 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
Based on estimates for the next years, NKE will show a small growth in Earnings Per Share. The EPS will grow by 3.45% on average per year.
The Revenue is expected to grow by 0.76% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.28, NKE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.03. NKE is valued slightly cheaper when compared to this.
NKE is valuated quite expensively with a Price/Forward Earnings ratio of 31.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 64.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NKE to the average of the S&P500 Index (21.94), we can say NKE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 31.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 66.67% of the companies listed 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 | 17.08 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
A cheap valuation may be justified as NKE's earnings are expected to decrease with -11.19% in the coming years.
PEG (NY)N/A
PEG (5Y)2.38
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, NKE has a reasonable but not impressive dividend return.
In the last 3 months the price of NKE has falen by -21.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.56, NKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.20%!
NKE has paid a dividend for at least 10 years, which is a reliable track record.
NKE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.2%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
50.33% of the earnings are spent on dividend by NKE. This is a bit on the high side, but may be sustainable.
NKE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.33%
EPS Next 2Y-27.58%
EPS Next 3Y-11.19%
NYSE:NKE (5/22/2025, 3:22:09 PM)
61.45
+1.47 (+2.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner Change5.01%
Ins Owners0.95%
Ins Owner Change-0.75%
Market Cap90.70B
Analysts72.44
Price Target75.42 (22.73%)
Short Float %3.89%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend1.43
Dividend Growth(5Y)11.2%
DP50.33%
Div Incr Years23
Div Non Decr Years34
Ex-Date
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)-10.62%
PT rev (3m)-15.73%
EPS NQ rev (1m)4.3%
EPS NQ rev (3m)-59.2%
EPS NY rev (1m)0.15%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-3.21%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 31.24 | ||
| P/S | 1.9 | ||
| P/FCF | 17.08 | ||
| P/OCF | 15.49 | ||
| P/B | 6.48 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 13.94 |
EPS(TTM)3.03
EY4.93%
EPS(NY)1.97
Fwd EY3.2%
FCF(TTM)3.6
FCFY5.86%
OCF(TTM)3.97
OCFY6.45%
SpS32.4
BVpS9.49
TBVpS9.15
PEG (NY)N/A
PEG (5Y)2.38
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 | 4.38 |
F-Score5
WACC10.14%
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-34.37%
EBIT Next 3Y-7.4%
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%