NIKE INC -CL B (NKE)
US6541061031 - Common Stock
We assign a fundamental rating of 6 out of 10 to NKE. NKE was compared to 49 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.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
In the past year NKE had a positive cash flow from operations.
NKE had positive earnings in each of the past 5 years.
NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NKE has a better Return On Assets (13.73%) than 91.84% of its industry peers.
The Return On Equity of NKE (36.16%) is better than 93.88% of its industry peers.
NKE has a better Return On Invested Capital (17.75%) than 89.80% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 19.88%. This is significantly above the industry average of 10.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.73% | ||
| ROE | 36.16% | ||
| ROIC | 17.75% |
ROA(3y)14.56%
ROA(5y)13.75%
ROE(3y)40.21%
ROE(5y)39.34%
ROIC(3y)19.88%
ROIC(5y)19.43%
1.3 Margins
With an excellent Profit Margin value of 9.82%, NKE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of NKE has grown nicely.
NKE's Operating Margin of 11.32% is fine compared to the rest of the industry. NKE outperforms 79.59% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 43.52%, NKE is in line with its industry, outperforming 46.94% of the companies in the same industry.
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 | 11.32% | ||
| PM (TTM) | 9.82% | ||
| GM | 43.52% |
OM growth 3Y11.51%
OM growth 5Y-1.11%
PM growth 3Y13.4%
PM growth 5Y13.26%
GM growth 3Y0.08%
GM growth 5Y-0.14%
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.
The number of shares outstanding for NKE has been reduced compared to 1 year ago.
The number of shares outstanding for NKE has been reduced compared to 5 years ago.
The debt/assets ratio for NKE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.84 indicates that NKE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.84, NKE belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
NKE has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as NKE would need 2.00 years to pay back of all of its debts.
NKE has a better Debt to FCF ratio (2.00) than 67.35% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that NKE is somewhat dependend on debt financing.
NKE has a worse Debt to Equity ratio (0.64) than 63.27% 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 | 0.64 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 6.84 |
ROIC/WACC1.92
WACC9.23%
2.3 Liquidity
A Current Ratio of 2.87 indicates that NKE has no problem at all paying its short term obligations.
The Current ratio of NKE (2.87) is better than 69.39% of its industry peers.
A Quick Ratio of 1.84 indicates that NKE should not have too much problems paying its short term obligations.
NKE's Quick ratio of 1.84 is fine compared to the rest of the industry. NKE outperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
NKE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.22%.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
Looking at the last year, NKE shows a quite strong growth in Revenue. The Revenue has grown by 9.16% in the last year.
NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.07% yearly.
EPS 1Y (TTM)-8.22%
EPS 3Y20.85%
EPS 5Y6.12%
EPS growth Q2Q1.08%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y11.05%
Revenue growth 5Y7.07%
Revenue growth Q2Q1.99%
3.2 Future
The Earnings Per Share is expected to grow by 14.40% 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 6.63% yearly.
EPS Next Y16.22%
EPS Next 2Y16.46%
EPS Next 3Y15.6%
EPS Next 5Y14.4%
Revenue Next Year4.22%
Revenue Next 2Y5.87%
Revenue Next 3Y6.56%
Revenue Next 5Y6.63%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
NKE is valuated quite expensively with a Price/Earnings ratio of 33.56.
NKE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.46, NKE is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 24.83, the valuation of NKE can be described as rather expensive.
NKE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NKE is more expensive than 63.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NKE to the average of the S&P500 Index (19.59), we can say NKE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.56 | ||
| Fwd PE | 24.83 |
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 63.27% 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 | 37.11 | ||
| EV/EBITDA | 24.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NKE does not grow enough to justify the current Price/Earnings ratio.
NKE has an outstanding profitability rating, which may justify a higher PE ratio.
NKE's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)5.48
EPS Next 2Y16.46%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, NKE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.14, NKE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.37, NKE pays less dividend than the S&P500 average, which is at 2.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.10%!
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)11.1%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
40.70% 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 more than its dividend. This makes the dividend growth sustainable.
DP40.7%
EPS Next 2Y16.46%
EPS Next 3Y15.6%
NIKE INC -CL B
NYSE:NKE (11/28/2023, 7:19:24 PM)
Premarket: 109.85 +1.1 (+1.01%)108.75
+0.79 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)09-28 2023-09-28/amc
Earnings (Next)12-18 2023-12-18/amc
Inst Owners64.72%
Inst Owner Change-66.11%
Ins Owners0.91%
Ins Owner Change46.59%
Market Cap165.51B
Analysts75.61
Price Target121.92 (12.11%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)11.1%
DP40.7%
Div Incr Years14
Div Non Decr Years14
Ex-Date12-01 2023-12-01 (0.37)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.24%
Min EPS beat(2)-2.42%
Max EPS beat(2)24.9%
EPS beat(4)3
Avg EPS beat(4)23.97%
Min EPS beat(4)-2.42%
Max EPS beat(4)42.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)2.85%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)6.93%
PT rev (1m)0.14%
PT rev (3m)-6.22%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-13.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.56 | ||
| Fwd PE | 24.83 | ||
| P/S | 3.22 | ||
| P/FCF | 37.11 | ||
| P/OCF | 30.55 | ||
| P/B | 11.85 | ||
| P/tB | 12.33 | ||
| EV/EBITDA | 24.32 |
EPS(TTM)3.24
EY2.98%
EPS(NY)4.38
Fwd EY4.03%
FCF(TTM)2.93
FCFY2.69%
OCF(TTM)3.56
OCFY3.27%
SpS33.82
BVpS9.18
TBVpS8.82
PEG (NY)2.07
PEG (5Y)5.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.73% | ||
| ROE | 36.16% | ||
| ROCE | 20.56% | ||
| ROIC | 17.75% | ||
| ROICexc | 25.73% | ||
| ROICexgc | 26.48% | ||
| OM | 11.32% | ||
| PM (TTM) | 9.82% | ||
| GM | 43.52% | ||
| FCFM | 8.67% |
ROA(3y)14.56%
ROA(5y)13.75%
ROE(3y)40.21%
ROE(5y)39.34%
ROIC(3y)19.88%
ROIC(5y)19.43%
ROICexc(3y)35.41%
ROICexc(5y)32.31%
ROICexgc(3y)36.65%
ROICexgc(5y)33.48%
ROCE(3y)23.03%
ROCE(5y)22.54%
ROICexcg growth 3Y16.02%
ROICexcg growth 5Y-2.75%
ROICexc growth 3Y16.12%
ROICexc growth 5Y-2.62%
OM growth 3Y11.51%
OM growth 5Y-1.11%
PM growth 3Y13.4%
PM growth 5Y13.26%
GM growth 3Y0.08%
GM growth 5Y-0.14%
F-Score7
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 108.74% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.81% | ||
| Profit Quality | 88.28% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 6.84 |
F-Score7
WACC9.23%
ROIC/WACC1.92
Cap/Depr(3y)96.75%
Cap/Depr(5y)119.26%
Cap/Sales(3y)1.69%
Cap/Sales(5y)2.17%
Profit Quality(3y)91.16%
Profit Quality(5y)89.46%
Growth
EPS 1Y (TTM)-8.22%
EPS 3Y20.85%
EPS 5Y6.12%
EPS growth Q2Q1.08%
EPS Next Y16.22%
EPS Next 2Y16.46%
EPS Next 3Y15.6%
EPS Next 5Y14.4%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y11.05%
Revenue growth 5Y7.07%
Revenue growth Q2Q1.99%
Revenue Next Year4.22%
Revenue Next 2Y5.87%
Revenue Next 3Y6.56%
Revenue Next 5Y6.63%
EBIT growth 1Y-6.76%
EBIT growth 3Y23.83%
EBIT growth 5Y5.88%
EBIT Next Year23.3%
EBIT Next 3Y17.46%
EBIT Next 5Y14.61%
FCF growth 1Y-27.87%
FCF growth 3Y51.58%
FCF growth 5Y4.41%
OCF growth 1Y-21.32%
OCF growth 3Y32.96%
OCF growth 5Y3.34%