US6541061031 - Common Stock

We assign a fundamental rating of **7** out of 10 to **NKE**. **NKE** was compared to 50 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes **NKE** very considerable for quality investing!

In the past year **NKE** was profitable.

Each year in the past 5 years **NKE** has been profitable.

With an excellent **Return On Assets** value of **14.00%**, **NKE** belongs to the best of the industry, outperforming **91.84%** of the companies in the same industry.

The **Average Return On Invested Capital** over the past 3 years for **NKE** is significantly above the industry average of **10.34%**.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 14% | ||

ROE | 36.77% | ||

ROIC | 17.62% |

ROA(3y)14.49%

ROA(5y)13.35%

ROE(3y)38.42%

ROE(5y)38.33%

ROIC(3y)18.84%

ROIC(5y)17.81%

The **Profit Margin** of **NKE** (**10.14%**) is better than **85.71%** of its industry peers.

In the last couple of years the **Profit Margin** of **NKE** has grown nicely.

The **Operating Margin** of **NKE** (**11.61%**) is better than **83.67%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 11.61% | ||

PM (TTM) | 10.14% | ||

GM | 44.3% |

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%

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 5 years ago.

Compared to 1 year ago, **NKE** has an improved debt to assets ratio.

An Altman-Z score of **5.33** indicates that **NKE** is not in any danger for bankruptcy at the moment.

With an excellent **Altman-Z score** value of **5.33**, **NKE** belongs to the best of the industry, outperforming **87.76%** of the companies in the same industry.

A Debt/Equity ratio of **0.63** indicates that **NKE** is somewhat dependend on debt financing.

The **Debt to Equity ratio** of **NKE** (**0.63**) is worse than **69.39%** 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 | 0.63 | ||

Debt/FCF | 1.44 | ||

Altman-Z | 5.33 |

ROIC/WACC2.03

WACC8.68%

A Current Ratio of **2.74** indicates that **NKE** has no problem at all paying its short term obligations.

Looking at the **Current ratio**, with a value of **2.74**, **NKE** is in the better half of the industry, outperforming **63.27%** of the companies in the same industry.

The **Quick ratio** of **NKE** (**1.89**) is better than **73.47%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 2.74 | ||

Quick Ratio | 1.89 |

Measured over the past years, **NKE** shows a quite strong growth in **Earnings Per Share**. The EPS has been growing by **8.53%** on average per year.

The **Revenue** has been growing slightly by **0.28%** in the past year.

EPS 1Y (TTM)16.1%

EPS 3Y1.75%

EPS 5Y8.53%

EPS Q2Q%53.03%

Revenue 1Y (TTM)0.28%

Revenue growth 3Y4.87%

Revenue growth 5Y5.6%

Sales Q2Q%-1.71%

Based on estimates for the next years, **NKE** will show a small growth in **Revenue**. The Revenue will grow by **5.04%** on average per year.

EPS Next Y6.04%

EPS Next 2Y9.34%

EPS Next 3Y8.71%

EPS Next 5Y11.15%

Revenue Next Year1.42%

Revenue Next 2Y3.68%

Revenue Next 3Y4.53%

Revenue Next 5Y5.04%

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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.

The average S&P500 **Price/Earnings** ratio is at **29.15**. **NKE** is valued slightly cheaper when compared to this.

Based on the **Price/Forward Earnings** ratio of **18.46**, the valuation of **NKE** can be described as rather expensive.

Compared to the rest of the industry, the **Price/Forward Earnings** ratio of **NKE** is on the same level as its industry peers.

When comparing the **Price/Forward Earnings** ratio of **NKE** to the average of the S&P500 Index (**20.65**), we can say **NKE** is valued inline with the index average.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 19.58 | ||

Fwd PE | 18.46 |

Based on the **Enterprise Value to EBITDA** ratio, **NKE** is valued a bit more expensive than the industry average as 61.22% of the companies are valued more cheaply.

The rest of the industry has a similar **Price/Free Cash Flow** ratio as **NKE**.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 17.89 | ||

EV/EBITDA | 15.67 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)3.24

PEG (5Y)2.29

EPS Next 2Y9.34%

EPS Next 3Y8.71%

The stock price of **NKE** dropped by **-20.20%** 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 S&P500 **Dividend Yield** of **2.35**, **NKE** has a dividend comparable with the average S&P500 company.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 2.02% |

The dividend of **NKE** is nicely growing with an annual growth rate of **11.10%**!

Dividend Growth(5Y)11.1%

Div Incr Years22

Div Non Decr Years33

The dividend of **NKE** is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.

DP40.78%

EPS Next 2Y9.34%

EPS Next 3Y8.71%

**NIKE INC -CL B**

NYSE:NKE (7/12/2024, 7:04:00 PM)

After market: 73.4499 +0.03 (+0.04%)**73.42**

**+0.03 (+0.04%) **

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Durables & Apparel

GICS IndustryTextiles, Apparel & Luxury Goods

Earnings (Last)

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Market Cap110.82B

Analysts

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Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | 2.02% |

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Valuation

Industry Rank | Sector Rank | ||
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PE | 19.58 | ||

Fwd PE | 18.46 | ||

P/S | |||

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P/OCF | |||

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PEG (NY)3.24

PEG (5Y)2.29

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 14% | ||

ROE | 36.77% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 11.61% | ||

PM (TTM) | 10.14% | ||

GM | 44.3% | ||

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ROA(3y)

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F-Score

Asset Turnover1.38

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.63 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 2.74 | ||

Quick Ratio | 1.89 | ||

Altman-Z |

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Growth

EPS 1Y (TTM)16.1%

EPS 3Y1.75%

EPS 5Y

EPS Q2Q%

EPS Next Y6.04%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)0.28%

Revenue growth 3Y4.87%

Revenue growth 5Y

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