NIKE INC -CL B (NKE)
US6541061031 - Common Stock
Overall NKE gets a fundamental rating of 6 out of 10. We evaluated NKE against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While NKE has a great profitability rating, there are some minor concerns on its financial health. NKE is quite expensive at the moment. It does show a decent growth rate.
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.
NKE had positive earnings in each of the past 5 years.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.00%, NKE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
NKE's Return On Equity of 36.77% is amongst the best of the industry. NKE outperforms 94.00% of its industry peers.
With an excellent Return On Invested Capital value of 18.24%, NKE belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NKE is significantly above the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14% | ||
| ROE | 36.77% | ||
| ROIC | 18.24% |
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
Looking at the Profit Margin, with a value of 10.14%, NKE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NKE has grown nicely.
The Operating Margin of NKE (11.61%) is better than 82.00% 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 44.30% is in line compared to the rest of the industry. NKE outperforms 46.00% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.61% | ||
| PM (TTM) | 10.14% | ||
| GM | 44.3% |
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
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 1 year ago.
Compared to 5 years ago, NKE has less shares outstanding
The debt/assets ratio for NKE is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of NKE is 1.44, which is an excellent value as it means it would take NKE, only 1.44 years of fcf income to pay off all of its debts.
NKE has a better Debt to FCF ratio (1.44) than 68.00% of its industry peers.
NKE has a Debt/Equity ratio of 0.63. This is a neutral value indicating NKE is somewhat dependend on debt financing.
The Debt to Equity ratio of NKE (0.63) is worse than 66.00% 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 | N/A |
ROIC/WACC1.96
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.74 indicates that NKE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.74, NKE is doing good in the industry, outperforming 64.00% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that NKE should not have too much problems paying its short term obligations.
NKE has a Quick ratio of 1.89. This is in the better half of the industry: NKE outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
NKE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.02%.
Measured over the past 5 years, NKE shows a small growth in Earnings Per Share. The EPS has been growing by 6.12% on average per year.
NKE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.89%.
The Revenue has been growing slightly by 7.07% on average over the past years.
EPS 1Y (TTM)-2.02%
EPS 3Y20.85%
EPS 5Y6.12%
EPS growth Q2Q-2.53%
Revenue 1Y (TTM)1.89%
Revenue growth 3Y11.05%
Revenue growth 5Y7.07%
Revenue growth Q2Q0.31%
3.2 Future
The Earnings Per Share is expected to grow by 14.40% on average over the next years. This is quite good.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 6.63% on average per year.
EPS Next Y12%
EPS Next 2Y11.35%
EPS Next 3Y11.71%
EPS Next 5Y14.4%
Revenue Next Year1.39%
Revenue Next 2Y1.51%
Revenue Next 3Y2.97%
Revenue Next 5Y6.63%
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
Based on the Price/Earnings ratio of 27.80, the valuation of NKE can be described as expensive.
NKE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.80, NKE is valued at the same level.
A Price/Forward Earnings ratio of 23.61 indicates a rather expensive valuation of NKE.
NKE's Price/Forward Earnings is on the same level as the industry average.
NKE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 23.61 |
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 64.00% of the companies in the same industry.
62.00% of the companies in the same industry are cheaper than NKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.12 | ||
| EV/EBITDA | 20.82 |
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.
PEG (NY)2.32
PEG (5Y)4.54
EPS Next 2Y11.35%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, NKE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, NKE pays a bit more dividend than its industry peers.
NKE's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.1%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
NKE pays out 40.78% of its income as dividend. 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.
DP40.78%
EPS Next 2Y11.35%
EPS Next 3Y11.71%
NIKE INC -CL B
NYSE:NKE (4/19/2024, 3:28:41 PM)
After market: 94.7 +0.17 (+0.18%)94.53
-1.21 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap143.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 23.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.32
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14% | ||
| ROE | 36.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.61% | ||
| PM (TTM) | 10.14% | ||
| GM | 44.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
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 |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.02%
EPS 3Y20.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.89%
Revenue growth 3Y11.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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OCF growth 1Y
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