NIKE INC -CL B (NKE) Stock Fundamental Analysis
NYSE:NKE - US6541061031 - Common Stock
78.65 USD
-0.52 (-0.66%)
78.6994 USD
+0.05 (+0.06%)
Overall NKE gets a fundamental rating of 5 out of 10. We evaluated NKE against 50 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 is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
NKE has a Return On Assets of 8.80%. This is amongst the best in the industry. NKE outperforms 88.00% of its industry peers.
The Return On Equity of NKE (24.36%) is better than 86.00% of its industry peers.
NKE has a Return On Invested Capital of 11.95%. This is in the better half of the industry: NKE outperforms 76.00% 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 10.66%.
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 has a better Profit Margin (6.95%) than 82.00% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a Operating Margin of 7.99%. This is comparable to the rest of the industry: NKE outperforms 60.00% 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 42.73% is on the low side compared to the rest of the industry. NKE is outperformed by 62.00% 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) just above the Cost of Capital (WACC), NKE is creating some value.
The number of shares outstanding for NKE has been reduced compared to 1 year ago.
NKE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
NKE has an Altman-Z score of 4.97. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE has a better Altman-Z score (4.97) than 88.00% of its industry peers.
The Debt to FCF ratio of NKE is 2.44, which is a good value as it means it would take NKE, 2.44 years of fcf income to pay off all of its debts.
NKE's Debt to FCF ratio of 2.44 is fine compared to the rest of the industry. NKE outperforms 78.00% 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 doing worse than 62.00% 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 | 4.97 |
ROIC/WACC1.29
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.21 indicates that NKE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.21, NKE is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
NKE has a Quick Ratio of 1.50. 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 1.50 is fine compared to the rest of the industry. NKE outperforms 78.00% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -9.84%.
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
The Earnings Per Share is expected to grow by 16.32% on average over the next years. This is quite good.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.75%
EPS Next 5Y16.32%
Revenue Next Year-0.13%
Revenue Next 2Y2.53%
Revenue Next 3Y3.47%
Revenue Next 5Y4.4%
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
A Price/Earnings ratio of 36.41 indicates a quite expensive valuation of NKE.
Based on the Price/Earnings ratio, NKE is valued a bit more expensive than 62.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of NKE to the average of the S&P500 Index (27.08), we can say NKE is valued slightly more expensively.
The Price/Forward Earnings ratio is 46.87, which means the current valuation is very expensive for NKE.
NKE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NKE is more expensive than 68.00% of the companies in the same industry.
NKE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.41 | ||
| Fwd PE | 46.87 |
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 70.00% of the companies in the same industry.
NKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.54 | ||
| EV/EBITDA | 25.12 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.8
EPS Next 2Y6.8%
EPS Next 3Y11.75%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.10%.
NKE's Dividend Yield is a higher than the industry average which is at 3.65.
Compared to an average S&P500 Dividend Yield of 2.34, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
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
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 2Y6.8%
EPS Next 3Y11.75%
78.65
-0.52 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.88%
Inst Owner Change-1.14%
Ins Owners0.67%
Ins Owner Change-0.37%
Market Cap116.16B
Analysts72.09
Price Target79.34 (0.88%)
Short Float %3.8%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP71.45%
Div Incr Years23
Div Non Decr Years34
Ex-Date
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)2.76%
PT rev (3m)5.2%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-25.66%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-14.68%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.41 | ||
| Fwd PE | 46.87 | ||
| P/S | 2.51 | ||
| P/FCF | 35.54 | ||
| P/OCF | 31.41 | ||
| P/B | 8.79 | ||
| P/tB | 9.14 | ||
| EV/EBITDA | 25.12 |
EPS(TTM)2.16
EY2.75%
EPS(NY)1.68
Fwd EY2.13%
FCF(TTM)2.21
FCFY2.81%
OCF(TTM)2.5
OCFY3.18%
SpS31.36
BVpS8.95
TBVpS8.61
PEG (NY)N/A
PEG (5Y)10.8
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 | 4.97 |
F-Score4
WACC9.27%
ROIC/WACC1.29
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-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.75%
EPS Next 5Y16.32%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-0.13%
Revenue Next 2Y2.53%
Revenue Next 3Y3.47%
Revenue Next 5Y4.4%
EBIT growth 1Y-44.66%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.98%
EBIT Next 3Y19.07%
EBIT Next 5Y18.89%
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%