NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - NYSE:NKE - US6541061031 - Common Stock
71.2127 USD
-0.89 (-1.23%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, NKE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
NKE had a positive operating cash flow in the past year.
Each year in the past 5 years NKE has been profitable.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
NKE's Return On Assets of 8.80% is amongst the best of the industry. NKE outperforms 85.71% of its industry peers.
NKE's Return On Equity of 24.36% is amongst the best of the industry. NKE outperforms 81.63% of its industry peers.
NKE's Return On Invested Capital of 11.95% is fine compared to the rest of the industry. NKE outperforms 73.47% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 12.08%.
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's Profit Margin of 6.95% is amongst the best of the industry. NKE outperforms 81.63% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a Operating Margin (7.99%) which is in line with its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a worse Gross Margin (42.73%) than 61.22% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NKE is still creating some value.
Compared to 1 year ago, NKE has less shares outstanding
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 4.73 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE has a Altman-Z score of 4.73. This is amongst the best in the industry. NKE outperforms 83.67% of its industry peers.
NKE has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as NKE would need 2.44 years to pay back of all of its debts.
NKE has a better Debt to FCF ratio (2.44) than 79.59% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that NKE is somewhat dependend on debt financing.
NKE has a worse Debt to Equity ratio (0.60) than 63.27% of its industry peers.
Although NKE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.17
WACC10.24%
2.3 Liquidity
NKE has a Current Ratio of 2.21. This indicates that NKE is financially healthy and has no problem in meeting 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 67.35% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, NKE belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased strongly by -42.40% 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.
Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -9.84% in the last year.
The Revenue has been growing slightly by 4.36% on average over the past years.
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
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
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 3Y11.69%
EPS Next 5Y16.32%
Revenue Next Year-0.13%
Revenue Next 2Y2.54%
Revenue Next 3Y3.48%
Revenue Next 5Y4.4%
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
With a Price/Earnings ratio of 32.97, NKE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NKE is valued a bit more expensive than the industry average as 65.31% of the companies are valued more cheaply.
NKE is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.44, which means the current valuation is very expensive for NKE.
Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 69.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, NKE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 42.44 |
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 71.43% 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 | 32.18 | ||
| EV/EBITDA | 22.97 |
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)9.78
EPS Next 2Y6.8%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
NKE's Dividend Yield is a higher than the industry average which is at 3.08.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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 71.45% 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.
DP71.45%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
NYSE:NKE (9/19/2025, 10:02:10 AM)
71.2127
-0.89 (-1.23%)
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-1.13%
Ins Owners0.67%
Ins Owner Change1%
Market Cap105.17B
Analysts72.09
Price Target80.89 (13.59%)
Short Float %3.12%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)3.19%
PT rev (3m)8.42%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)-23.84%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-14.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 42.44 | ||
| P/S | 2.27 | ||
| P/FCF | 32.18 | ||
| P/OCF | 28.44 | ||
| P/B | 7.96 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 22.97 |
EPS(TTM)2.16
EY3.03%
EPS(NY)1.68
Fwd EY2.36%
FCF(TTM)2.21
FCFY3.11%
OCF(TTM)2.5
OCFY3.52%
SpS31.36
BVpS8.95
TBVpS8.61
PEG (NY)N/A
PEG (5Y)9.78
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 | 4.73 |
F-Score4
WACC10.24%
ROIC/WACC1.17
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 3Y11.69%
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 2Y2.54%
Revenue Next 3Y3.48%
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%