NIKE INC -CL B (1NKE.MI) Stock Fundamental Analysis
BIT:1NKE - Euronext Milan - US6541061031 - Common Stock - Currency: EUR
Overall 1NKE gets a fundamental rating of 6 out of 10. We evaluated 1NKE against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. 1NKE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1NKE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1NKE was profitable.
1NKE had a positive operating cash flow in the past year.
Each year in the past 5 years 1NKE has been profitable.
Each year in the past 5 years 1NKE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.87%, 1NKE belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
With an excellent Return On Equity value of 34.81%, 1NKE belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
1NKE has a Return On Invested Capital of 18.25%. This is amongst the best in the industry. 1NKE outperforms 88.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NKE is significantly above the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 34.81% | ||
| ROIC | 18.25% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
1.3 Margins
1NKE has a Profit Margin of 9.98%. This is in the better half of the industry: 1NKE outperforms 77.27% of its industry peers.
In the last couple of years the Profit Margin of 1NKE has grown nicely.
With a decent Operating Margin value of 11.95%, 1NKE is doing good in the industry, outperforming 61.36% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NKE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 44.60%, 1NKE is doing worse than 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of 1NKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.95% | ||
| PM (TTM) | 9.98% | ||
| GM | 44.6% |
OM growth 3Y-6.89%
OM growth 5Y1.32%
PM growth 3Y-4.79%
PM growth 5Y1.5%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NKE is creating value.
Compared to 1 year ago, 1NKE has less shares outstanding
Compared to 5 years ago, 1NKE has less shares outstanding
The debt/assets ratio for 1NKE has been reduced compared to a year ago.
2.2 Solvency
1NKE has an Altman-Z score of 5.18. This indicates that 1NKE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.18, 1NKE belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Debt to FCF ratio of 1NKE is 1.64, which is an excellent value as it means it would take 1NKE, only 1.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1NKE (1.64) is better than 84.09% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that 1NKE is somewhat dependend on debt financing.
1NKE has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
Although 1NKE 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 | 0.57 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.91
WACC9.56%
2.3 Liquidity
A Current Ratio of 2.22 indicates that 1NKE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.22, 1NKE belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
1NKE has a Quick Ratio of 1.51. This is a normal value and indicates that 1NKE is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.51, 1NKE belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for 1NKE have decreased by -4.68% in the last year.
The Earnings Per Share has been growing by 8.53% on average over the past years. This is quite good.
Looking at the last year, 1NKE shows a decrease in Revenue. The Revenue has decreased by -4.97% in the last year.
1NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.60% yearly.
EPS 1Y (TTM)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
3.2 Future
Based on estimates for the next years, 1NKE will show a small growth in Earnings Per Share. The EPS will grow by 1.75% on average per year.
Based on estimates for the next years, 1NKE will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y-43.74%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
EPS Next 5Y1.75%
Revenue Next Year-10.91%
Revenue Next 2Y-5.03%
Revenue Next 3Y-1.52%
Revenue Next 5Y1.18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.35, 1NKE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1NKE is on the same level as its industry peers.
1NKE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 32.17, which means the current valuation is very expensive for 1NKE.
1NKE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1NKE to the average of the S&P500 Index (22.10), we can say 1NKE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 32.17 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than 1NKE, based on the Enterprise Value to EBITDA ratio.
1NKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.26 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
The decent profitability rating of 1NKE may justify a higher PE ratio.
A cheap valuation may be justified as 1NKE's earnings are expected to decrease with -6.49% in the coming years.
PEG (NY)N/A
PEG (5Y)2.85
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
5. Dividend
5.1 Amount
1NKE has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
1NKE's Dividend Yield is a higher than the industry average which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.33, 1NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
On average, the dividend of 1NKE grows each year by 11.20%, which is quite nice.
Dividend Growth(5Y)11.2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.78% of the earnings are spent on dividend by 1NKE. This is a bit on the high side, but may be sustainable.
The dividend of 1NKE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.78%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
BIT:1NKE (3/4/2025, 7:00:00 PM)
73.04
-2.57 (-3.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners82.7%
Inst Owner ChangeN/A
Ins Owners0.95%
Ins Owner ChangeN/A
Market Cap108.04B
Analysts72.86
Price Target86.73 (18.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend1.32
Dividend Growth(5Y)11.2%
DP45.78%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.57%
Min EPS beat(2)21.88%
Max EPS beat(2)33.27%
EPS beat(4)4
Avg EPS beat(4)19.68%
Min EPS beat(4)3.59%
Max EPS beat(4)33.27%
EPS beat(8)7
Avg EPS beat(8)20.56%
EPS beat(12)11
Avg EPS beat(12)18.91%
EPS beat(16)15
Avg EPS beat(16)22.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)0.86%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)8
Avg Revenue beat(12)0.93%
Revenue beat(16)9
Avg Revenue beat(16)0.78%
PT rev (1m)1.98%
PT rev (3m)-2.49%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)-55.26%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-24.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 32.17 | ||
| P/S | 2.39 | ||
| P/FCF | 21.26 | ||
| P/OCF | 19.16 | ||
| P/B | 8.36 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)3
EY4.11%
EPS(NY)2.27
Fwd EY3.11%
FCF(TTM)3.44
FCFY4.7%
OCF(TTM)3.81
OCFY5.22%
SpS30.5
BVpS8.74
TBVpS8.43
PEG (NY)N/A
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 34.81% | ||
| ROCE | 21.91% | ||
| ROIC | 18.25% | ||
| ROICexc | 28.72% | ||
| ROICexgc | 29.59% | ||
| OM | 11.95% | ||
| PM (TTM) | 9.98% | ||
| GM | 44.6% | ||
| FCFM | 11.27% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
ROICexc(3y)32.19%
ROICexc(5y)31.11%
ROICexgc(3y)33.27%
ROICexgc(5y)32.18%
ROCE(3y)22.6%
ROCE(5y)21.38%
ROICexcg growth 3Y-5.31%
ROICexcg growth 5Y-0.47%
ROICexc growth 3Y-5.19%
ROICexc growth 5Y-0.31%
OM growth 3Y-6.89%
OM growth 5Y1.32%
PM growth 3Y-4.79%
PM growth 5Y1.5%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
F-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 71.79% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.44% | ||
| Profit Quality | 112.94% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 5.18 |
F-Score6
WACC9.56%
ROIC/WACC1.91
Cap/Depr(3y)99.75%
Cap/Depr(5y)107.42%
Cap/Sales(3y)1.7%
Cap/Sales(5y)1.91%
Profit Quality(3y)95.15%
Profit Quality(5y)88.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
EPS Next Y-43.74%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
EPS Next 5Y1.75%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
Revenue Next Year-10.91%
Revenue Next 2Y-5.03%
Revenue Next 3Y-1.52%
Revenue Next 5Y1.18%
EBIT growth 1Y-3.43%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-33.61%
EBIT Next 3Y-3.3%
EBIT Next 5Y3.14%
FCF growth 1Y209.65%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y128.57%
OCF growth 3Y3.73%
OCF growth 5Y4.71%