NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NKE • US6541061031
61.81 USD
-0.79 (-1.26%)
At close: Jan 30, 2026
61.69 USD
-0.12 (-0.19%)
After Hours: 1/30/2026, 8:09:12 PM
Taking everything into account, NKE scores 5 out of 10 in our fundamental rating. NKE was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While NKE has a great profitability rating, there are some minor concerns on its financial health. NKE is quite expensive at the moment. It does show a decent growth rate. Finally NKE also has an excellent dividend rating. This makes NKE very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year NKE was profitable.
- NKE had a positive operating cash flow in the past year.
- Each year in the past 5 years NKE has been profitable.
- NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NKE has a better Return On Assets (6.68%) than 77.78% of its industry peers.
- NKE has a Return On Equity of 17.92%. This is in the better half of the industry: NKE outperforms 77.78% of its industry peers.
- The Return On Invested Capital of NKE (9.77%) is better than 73.33% of its industry peers.
- NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 11.60%.
- The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(9.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 17.92% | ||
| ROIC | 9.77% |
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 5.43%, NKE is in the better half of the industry, outperforming 80.00% 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 (6.54%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
- With a Gross Margin value of 41.13%, NKE is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
- 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 | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% |
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) just above the Cost of Capital (WACC), NKE is creating some value.
- NKE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for NKE has been reduced compared to 5 years ago.
- Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
- NKE has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as NKE would need 3.24 years to pay back of all of its debts.
- NKE has a Debt to FCF ratio of 3.24. This is in the better half of the industry: NKE outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that NKE is not too dependend on debt financing.
- NKE has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: NKE underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC11.29%
2.3 Liquidity
- NKE has a Current Ratio of 2.06. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
- NKE has a Current ratio of 2.06. This is comparable to the rest of the industry: NKE outperforms 57.78% of its industry peers.
- A Quick Ratio of 1.40 indicates that NKE should not have too much problems paying its short term obligations.
- The Quick ratio of NKE (1.40) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.85%.
- 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 -5.03% in the last year.
- NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
EPS 1Y (TTM)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
3.2 Future
- The Earnings Per Share is expected to grow by 14.53% on average over the next years. This is quite good.
- Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y-26.19%
EPS Next 2Y4.97%
EPS Next 3Y9.44%
EPS Next 5Y14.53%
Revenue Next Year1.63%
Revenue Next 2Y2.76%
Revenue Next 3Y3.24%
Revenue Next 5Y5.09%
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
- The Price/Earnings ratio is 36.36, which means the current valuation is very expensive for NKE.
- Based on the Price/Earnings ratio, NKE is valued a bit more expensive than 60.00% of the companies in the same industry.
- NKE is valuated rather expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 25.97, the valuation of NKE can be described as expensive.
- NKE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NKE is more expensive than 64.44% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. NKE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 25.97 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.92 | ||
| EV/EBITDA | 23.85 |
4.3 Compensation for Growth
- The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.78
EPS Next 2Y4.97%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
- NKE has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.46, NKE pays a better dividend. On top of this NKE pays more dividend than 82.22% of the companies listed in the same industry.
- NKE's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
- On average, the dividend of NKE grows each year by 10.70%, which is quite nice.
- NKE has paid a dividend for at least 10 years, which is a reliable track record.
- NKE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.7%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
- NKE pays out 94.06% of its income as dividend. This is not a sustainable payout ratio.
- NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP94.06%
EPS Next 2Y4.97%
EPS Next 3Y9.44%
NIKE INC -CL B / NKE FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to NKE.
Can you provide the valuation status for NIKE INC -CL B?
ChartMill assigns a valuation rating of 1 / 10 to NIKE INC -CL B (NKE). This can be considered as Overvalued.
How profitable is NIKE INC -CL B (NKE) stock?
NIKE INC -CL B (NKE) has a profitability rating of 7 / 10.
What is the expected EPS growth for NIKE INC -CL B (NKE) stock?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE) is expected to decline by -26.19% in the next year.
How sustainable is the dividend of NIKE INC -CL B (NKE) stock?
The dividend rating of NIKE INC -CL B (NKE) is 7 / 10 and the dividend payout ratio is 94.06%.