NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
61.93 USD
-0.87 (-1.39%)
62.0799 USD
+0.15 (+0.24%)
Taking everything into account, NKE scores 6 out of 10 in our fundamental rating. NKE was compared to 46 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 valied quite expensively at the moment, while it does show a decent growth rate. NKE also has an excellent dividend rating. These ratings would make NKE suitable for dividend investing!
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.
NKE had positive earnings in each of the past 5 years.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NKE (7.75%) is better than 86.96% of its industry peers.
NKE has a Return On Equity of 21.50%. This is in the better half of the industry: NKE outperforms 76.09% of its industry peers.
NKE's Return On Invested Capital of 10.87% is fine compared to the rest of the industry. NKE outperforms 73.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NKE is above the industry average of 11.99%.
The last Return On Invested Capital (10.87%) for NKE is well below the 3 year average (16.64%), which needs to be investigated, but indicates that NKE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 21.5% | ||
| ROIC | 10.87% |
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's Profit Margin of 6.23% is amongst the best of the industry. NKE outperforms 80.43% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a better Operating Margin (7.36%) than 60.87% 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 has a worse Gross Margin (41.94%) than 60.87% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NKE is still creating some 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 4.27. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.27, NKE is doing good in the industry, outperforming 78.26% of the companies in the same industry.
The Debt to FCF ratio of NKE is 2.66, which is a good value as it means it would take NKE, 2.66 years of fcf income to pay off all of its debts.
NKE has a Debt to FCF ratio of 2.66. This is in the better half of the industry: NKE outperforms 69.57% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that NKE is somewhat dependend on debt financing.
The Debt to Equity ratio of NKE (0.59) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.02
WACC10.68%
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.
With a decent Current ratio value of 2.19, NKE is doing good in the industry, outperforming 60.87% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
The Quick ratio of NKE (1.45) is better than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased strongly by -44.44% in the last year.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.37% yearly.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
EPS 1Y (TTM)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
3.2 Future
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.96% on average per year.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.8%
EPS Next 5Y16.96%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y4.85%
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 31.76, which means the current valuation is very expensive for NKE.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
NKE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.65.
The Price/Forward Earnings ratio is 24.49, which indicates a rather expensive current valuation of NKE.
65.22% of the companies in the same industry are cheaper than NKE, based on the Price/Forward Earnings ratio.
NKE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 24.49 |
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 76.09% 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 | 30.42 | ||
| EV/EBITDA | 21.44 |
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 grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)9.42
EPS Next 2Y8.21%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 3.54, NKE pays a better dividend. On top of this NKE pays more dividend than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.7%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
NKE pays out 80.59% 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.
DP80.59%
EPS Next 2Y8.21%
EPS Next 3Y12.8%
61.93
-0.87 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.27%
Inst Owner Change-2.2%
Ins Owners0.67%
Ins Owner Change1.42%
Market Cap91.54B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75
Price Target85.08 (37.38%)
Short Float %3.14%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP80.59%
Div Incr Years23
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.76%
Min EPS beat(2)7.49%
Max EPS beat(2)78.04%
EPS beat(4)4
Avg EPS beat(4)47.74%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)33.55%
EPS beat(12)11
Avg EPS beat(12)30.36%
EPS beat(16)15
Avg EPS beat(16)26.66%
Revenue beat(2)2
Avg Revenue beat(2)3.98%
Min Revenue beat(2)2.46%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)2.55%
Min Revenue beat(4)0.86%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)1.35%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)3.6%
PT rev (3m)7.23%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-26.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 24.49 | ||
| P/S | 1.97 | ||
| P/FCF | 30.42 | ||
| P/OCF | 25.96 | ||
| P/B | 6.8 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | 21.44 |
EPS(TTM)1.95
EY3.15%
EPS(NY)2.53
Fwd EY4.08%
FCF(TTM)2.04
FCFY3.29%
OCF(TTM)2.39
OCFY3.85%
SpS31.42
BVpS9.11
TBVpS8.77
PEG (NY)N/A
PEG (5Y)9.42
Graham Number19.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 21.5% | ||
| ROCE | 12.94% | ||
| ROIC | 10.87% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 16.55% | ||
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% | ||
| FCFM | 6.48% |
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%
ROICexgc growth 3Y-18.4%
ROICexgc 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 63.83% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.36% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.27 |
F-Score4
WACC10.68%
ROIC/WACC1.02
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)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.8%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y19.05%
EBIT Next 5Y19.88%
FCF growth 1Y-32.53%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-34.92%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%
NIKE INC -CL B / NKE FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 6 / 10 to NKE.
What is the valuation status for NKE stock?
ChartMill assigns a valuation rating of 2 / 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 earnings growth outlook for NIKE INC -CL B?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE) is expected to decline by -22.25% in the next year.
Can you provide the dividend sustainability for NKE stock?
The dividend rating of NIKE INC -CL B (NKE) is 7 / 10 and the dividend payout ratio is 80.59%.