NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
63.28 USD
-0.43 (-0.67%)
63.3348 USD
+0.05 (+0.09%)
We assign a fundamental rating of 6 out of 10 to NKE. NKE was compared to 45 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. Finally NKE also has an excellent dividend rating. With these ratings, NKE could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
In the past year NKE had a positive cash flow from operations.
In the past 5 years NKE has always been profitable.
NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NKE's Return On Assets of 7.75% is amongst the best of the industry. NKE outperforms 86.67% of its industry peers.
The Return On Equity of NKE (21.50%) is better than 80.00% of its industry peers.
The Return On Invested Capital of NKE (10.87%) is better than 73.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NKE is significantly above the industry average of 11.62%.
The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(10.87%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 6.23%, NKE belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
NKE's Profit Margin has been stable in the last couple of years.
NKE's Operating Margin of 7.36% is fine compared to the rest of the industry. NKE outperforms 62.22% 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 Gross Margin of 41.94%. This is in the lower half of the industry: NKE underperforms 62.22% 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 | 7.36% | ||
| 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
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.
The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.29 indicates that NKE is not in any danger for bankruptcy at the moment.
The Altman-Z score of NKE (4.29) is better than 77.78% of its industry peers.
NKE has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NKE would need 2.66 years to pay back of all of its debts.
NKE's Debt to FCF ratio of 2.66 is fine compared to the rest of the industry. NKE outperforms 68.89% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that NKE is somewhat dependend on debt financing.
NKE has a worse Debt to Equity ratio (0.59) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.97
WACC11.26%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
The Current ratio of NKE (2.19) is better than 62.22% of its industry peers.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, NKE is doing good in the industry, outperforming 73.33% of the companies in the same industry.
| 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 -47.85% in the last year.
Measured over the past 5 years, NKE shows a small growth in Earnings Per Share. The EPS has been growing by 3.37% on average per year.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -5.03%.
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
NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.96% yearly.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y16.96%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NKE is valuated quite expensively with a Price/Earnings ratio of 37.22.
NKE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NKE to the average of the S&P500 Index (26.60), we can say NKE is valued slightly more expensively.
A Price/Forward Earnings ratio of 25.95 indicates a quite expensive valuation of NKE.
Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 66.67% of the companies in the same industry.
NKE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.22 | ||
| Fwd PE | 25.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than 71.11% of the companies in the same industry.
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 | 31.09 | ||
| EV/EBITDA | 21.78 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.04
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, NKE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.54, NKE pays a better dividend. On top of this NKE pays more dividend than 84.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.93, NKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 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.
The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.59%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
63.28
-0.43 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.45%
Inst Owner Change-2.18%
Ins Owners0.69%
Ins Owner Change4.23%
Market Cap93.54B
Revenue(TTM)46.51B
Net Income(TTM)2.90B
Analysts75.45
Price Target80.28 (26.86%)
Short Float %3.15%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP80.59%
Div Incr Years23
Div Non Decr Years34
Ex-DateN/A
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)-5.65%
PT rev (3m)-2.25%
EPS NQ rev (1m)2.39%
EPS NQ rev (3m)-23.48%
EPS NY rev (1m)-3.58%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.98%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.22 | ||
| Fwd PE | 25.95 | ||
| P/S | 2.01 | ||
| P/FCF | 31.09 | ||
| P/OCF | 26.53 | ||
| P/B | 6.95 | ||
| P/tB | 7.21 | ||
| EV/EBITDA | 21.78 |
EPS(TTM)1.7
EY2.69%
EPS(NY)2.44
Fwd EY3.85%
FCF(TTM)2.04
FCFY3.22%
OCF(TTM)2.39
OCFY3.77%
SpS31.42
BVpS9.11
TBVpS8.77
PEG (NY)N/A
PEG (5Y)11.04
Graham Number18.67
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 | 1.91 | ||
| Cap/Depr | 66.54% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.01% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.29 |
F-Score4
WACC11.26%
ROIC/WACC0.97
Cap/Depr(3y)88.17%
Cap/Depr(5y)88.39%
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)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y17.24%
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.
Can you provide the valuation status for NIKE INC -CL B?
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 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 -24.92% 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 80.59%.