NIKE INC -CL B (1NKE.MI) Stock Fundamental Analysis
BIT:1NKE - Euronext Milan - US6541061031 - Common Stock - Currency: EUR
Taking everything into account, 1NKE scores 6 out of 10 in our fundamental rating. 1NKE was compared to 44 industry peers in the Textiles, Apparel & Luxury Goods industry. 1NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1NKE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1NKE was profitable.
1NKE had a positive operating cash flow in the past year.
1NKE had positive earnings in each of the past 5 years.
Of the past 5 years 1NKE 4 years had a positive operating cash flow.
1.2 Ratios
1NKE has a better Return On Assets (11.93%) than 84.09% of its industry peers.
1NKE has a Return On Equity of 32.18%. This is amongst the best in the industry. 1NKE outperforms 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.77%, 1NKE belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1NKE is significantly above the industry average of 11.04%.
The 3 year average ROIC (16.64%) for 1NKE is below the current ROIC(16.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.77% |
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
The Profit Margin of 1NKE (9.43%) is better than 72.73% of its industry peers.
1NKE's Profit Margin has been stable in the last couple of years.
1NKE has a Operating Margin (11.10%) which is in line with its industry peers.
1NKE's Operating Margin has been stable in the last couple of years.
1NKE's Gross Margin of 43.82% is on the low side compared to the rest of the industry. 1NKE is outperformed by 84.09% of its industry peers.
1NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% |
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
1NKE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1NKE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1NKE has been reduced compared to 5 years ago.
Compared to 1 year ago, 1NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.90 indicates that 1NKE is not in any danger for bankruptcy at the moment.
1NKE has a better Altman-Z score (4.90) than 77.27% of its industry peers.
1NKE has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
The Debt to FCF ratio of 1NKE (1.69) is better than 86.36% of its industry peers.
1NKE has a Debt/Equity ratio of 0.57. This is a neutral value indicating 1NKE is somewhat dependend on debt financing.
1NKE has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: 1NKE outperforms 52.27% of its industry peers.
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 | 1.69 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.9
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.19 indicates that 1NKE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.19, 1NKE is doing good in the industry, outperforming 79.55% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that 1NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.52, 1NKE belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
1NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.40%.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
1NKE shows a decrease in Revenue. In the last year, the revenue decreased by -9.84%.
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
1NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.35% yearly.
The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
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
Based on the Price/Earnings ratio of 33.77, the valuation of 1NKE can be described as expensive.
1NKE's Price/Earnings is on the same level as the industry average.
1NKE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 37.39, which means the current valuation is very expensive for 1NKE.
1NKE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1NKE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.77 | ||
| Fwd PE | 37.39 |
4.2 Price Multiples
72.73% of the companies in the same industry are cheaper than 1NKE, based on the Enterprise Value to EBITDA ratio.
63.64% of the companies in the same industry are cheaper than 1NKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.22 | ||
| EV/EBITDA | 17.28 |
4.3 Compensation for Growth
The decent profitability rating of 1NKE may justify a higher PE ratio.
1NKE's earnings are expected to grow with 21.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)10.02
EPS Next 2Y9.9%
EPS Next 3Y21.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, 1NKE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.03, 1NKE has a dividend in line with its industry peers.
1NKE's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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
50.33% 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 earnings are growing more, so the dividend growth is sustainable.
DP50.33%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
BIT:1NKE (7/11/2025, 7:00:00 PM)
62.13
-0.93 (-1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.22%
Inst Owner ChangeN/A
Ins Owners0.94%
Ins Owner ChangeN/A
Market Cap91.70B
Analysts71.82
Price Target64.64 (4.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend1.21
Dividend Growth(5Y)11.2%
DP50.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.71%
Min EPS beat(2)21.88%
Max EPS beat(2)83.55%
EPS beat(4)4
Avg EPS beat(4)39.67%
Min EPS beat(4)19.98%
Max EPS beat(4)83.55%
EPS beat(8)7
Avg EPS beat(8)25.67%
EPS beat(12)11
Avg EPS beat(12)24.12%
EPS beat(16)15
Avg EPS beat(16)26.57%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.86%
Max Revenue beat(2)1.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)8
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)1.3%
PT rev (1m)-3.35%
PT rev (3m)-17.31%
EPS NQ rev (1m)16.01%
EPS NQ rev (3m)21.37%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-9.46%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.77 | ||
| Fwd PE | 37.39 | ||
| P/S | 2.25 | ||
| P/FCF | 20.22 | ||
| P/OCF | 18.34 | ||
| P/B | 7.67 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 17.28 |
EPS(TTM)1.84
EY2.96%
EPS(NY)1.66
Fwd EY2.67%
FCF(TTM)3.07
FCFY4.95%
OCF(TTM)3.39
OCFY5.45%
SpS27.67
BVpS8.1
TBVpS7.82
PEG (NY)N/A
PEG (5Y)10.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.77% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 28.41% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
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 | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 66.63% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.64% | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 4.9 |
F-Score4
WACC8.84%
ROIC/WACC1.9
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
EBIT growth 1Y-11.36%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year10.67%
EBIT Next 3Y25.27%
EBIT Next 5Y21.09%
FCF growth 1Y-14.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.12%
OCF growth 3YN/A
OCF growth 5YN/A