NIKE INC -CL B (NKE)

US6541061031 - Common Stock

94.13  +1.55 (+1.67%)

Premarket: 94.29 +0.16 (+0.17%)

Fundamental Rating

6

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. NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, NKE is valued expensive at the moment. Finally NKE also has an excellent dividend rating. This makes NKE very considerable for dividend investing!



8

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.
Each year in the past 5 years NKE had a positive operating cash flow.

1.2 Ratios

The Return On Assets of NKE (14.24%) is better than 92.00% of its industry peers.
NKE has a better Return On Equity (37.46%) than 96.00% of its industry peers.
NKE has a better Return On Invested Capital (18.55%) than 92.00% 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 10.10%.
Industry RankSector Rank
ROA 14.24%
ROE 37.46%
ROIC 18.55%
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

The Profit Margin of NKE (10.28%) is better than 90.00% of its industry peers.
NKE's Profit Margin has improved in the last couple of years.
The Operating Margin of NKE (11.76%) is better than 84.00% 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 has a Gross Margin (43.96%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NKE has remained more or less at the same level.
Industry RankSector Rank
OM 11.76%
PM (TTM) 10.28%
GM 43.96%
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%

7

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.
NKE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NKE is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 6.18 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE has a better Altman-Z score (6.18) than 88.00% of its industry peers.
The Debt to FCF ratio of NKE is 1.42, which is an excellent value as it means it would take NKE, only 1.42 years of fcf income to pay off all of its debts.
NKE's Debt to FCF ratio of 1.42 is fine compared to the rest of the industry. NKE outperforms 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.
With a Debt to Equity ratio value of 0.63, NKE is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
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 RankSector Rank
Debt/Equity 0.63
Debt/FCF 1.42
Altman-Z 6.18
ROIC/WACC2.07
WACC8.97%

2.3 Liquidity

NKE has a Current Ratio of 2.74. 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 2.74, NKE is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
A Quick Ratio of 1.85 indicates that NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, NKE is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.74
Quick Ratio 1.85

4

3. Growth

3.1 Past

The earnings per share for NKE have decreased by -3.66% in the last year.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.12% yearly.
NKE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.96%.
Measured over the past years, NKE shows a small growth in Revenue. The Revenue has been growing by 7.07% on average per year.
EPS 1Y (TTM)-3.66%
EPS 3Y20.85%
EPS 5Y6.12%
EPS growth Q2Q21.18%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y11.05%
Revenue growth 5Y7.07%
Revenue growth Q2Q0.55%

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 14.40% yearly.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.63% yearly.
EPS Next Y12.22%
EPS Next 2Y15.1%
EPS Next 3Y15.39%
EPS Next 5Y14.4%
Revenue Next Year1.62%
Revenue Next 2Y3.86%
Revenue Next 3Y5.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 27.52, the valuation of NKE can be described as expensive.
NKE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.42. NKE is around the same levels.
Based on the Price/Forward Earnings ratio of 22.00, the valuation of NKE can be described as rather expensive.
NKE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.74. NKE is around the same levels.
Industry RankSector Rank
PE 27.52
Fwd PE 22

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
NKE's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.61
EV/EBITDA 20.46

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.
The excellent profitability rating of NKE may justify a higher PE ratio.
A more expensive valuation may be justified as NKE's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)2.25
PEG (5Y)4.5
EPS Next 2Y15.1%
EPS Next 3Y15.39%

7

5. Dividend

5.1 Amount

NKE has a Yearly Dividend Yield of 1.60%.
NKE's Dividend Yield is a higher than the industry average which is at 2.76.
NKE's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.6%

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 Years15
Div Non Decr Years15

5.3 Sustainability

NKE pays out 39.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.61%
EPS Next 2Y15.1%
EPS Next 3Y15.39%

NIKE INC -CL B

NYSE:NKE (3/27/2024, 8:04:00 PM)

Premarket: 94.29 +0.16 (+0.17%)

94.13

+1.55 (+1.67%)

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 Cap142.62B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 27.52
Fwd PE 22
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)2.25
PEG (5Y)4.5
Profitability
Industry RankSector Rank
ROA 14.24%
ROE 37.46%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.76%
PM (TTM) 10.28%
GM 43.96%
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 Turnover1.39
Health
Industry RankSector 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 1.85
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)-3.66%
EPS 3Y20.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.96%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y