NIKE INC -CL B (1NKE.MI) Stock Fundamental Analysis
BIT:1NKE - Euronext Milan - US6541061031 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1NKE. 1NKE was compared to 40 industry peers in the Textiles, Apparel & Luxury Goods industry. 1NKE gets an excellent profitability rating and is at the same time showing great financial health properties. 1NKE is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1NKE had positive earnings in the past year.
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
The Return On Assets of 1NKE (11.93%) is better than 82.50% of its industry peers.
The Return On Equity of 1NKE (32.18%) is better than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.66%, 1NKE belongs to the top of the industry, outperforming 85.00% 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 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.66% |
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 9.43%. This is in the better half of the industry: 1NKE outperforms 72.50% of its industry peers.
In the last couple of years the Profit Margin of 1NKE has grown nicely.
1NKE has a Operating Margin (11.10%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 1NKE has remained more or less at the same level.
With a Gross Margin value of 43.82%, 1NKE is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
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 | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NKE is creating value.
The number of shares outstanding for 1NKE has been reduced compared to 1 year ago.
Compared to 5 years ago, 1NKE has less shares outstanding
Compared to 1 year ago, 1NKE has an improved debt to assets ratio.
2.2 Solvency
1NKE has an Altman-Z score of 4.30. This indicates that 1NKE is financially healthy and has little risk of bankruptcy at the moment.
1NKE has a Altman-Z score of 4.30. This is amongst the best in the industry. 1NKE outperforms 85.00% of its industry peers.
The Debt to FCF ratio of 1NKE is 1.69, which is an excellent value as it means it would take 1NKE, only 1.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.69, 1NKE belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that 1NKE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, 1NKE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for 1NKE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.73
WACC9.64%
2.3 Liquidity
A Current Ratio of 2.19 indicates that 1NKE has no problem at all paying its short term obligations.
1NKE has a better Current ratio (2.19) than 85.00% of its industry peers.
1NKE has a Quick Ratio of 1.52. This is a normal value and indicates that 1NKE is financially healthy and should not expect problems in meeting its short term obligations.
1NKE has a Quick ratio of 1.52. This is amongst the best in the industry. 1NKE outperforms 82.50% of its industry peers.
| 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 -10.88%.
Measured over the past years, 1NKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.53% on average per year.
The Revenue has decreased by -7.30% in the past year.
Measured over the past years, 1NKE shows a small growth in Revenue. The Revenue has been growing by 5.60% on average per year.
EPS 1Y (TTM)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
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 3.45% on average per year.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue Next Year-11.18%
Revenue Next 2Y-6.4%
Revenue Next 3Y-2.52%
Revenue Next 5Y0.76%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.09, which indicates a rather expensive current valuation of 1NKE.
1NKE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1NKE is valued a bit cheaper.
1NKE is valuated quite expensively with a Price/Forward Earnings ratio of 29.00.
1NKE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1NKE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NKE is valued a bit more expensive than 72.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1NKE is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.09 | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
The decent profitability rating of 1NKE may justify a higher PE ratio.
1NKE's earnings are expected to decrease with -10.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
5. Dividend
5.1 Amount
1NKE has a Yearly Dividend Yield of 2.74%.
In the last 3 months the price of 1NKE has falen by -26.33%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.41, 1NKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, 1NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
1NKE pays out 50.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
1NKE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.33%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
BIT:1NKE (4/24/2025, 7:00:00 PM)
50.98
+0.79 (+1.57%)
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 Cap75.25B
Analysts72.56
Price Target67.77 (32.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.26
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)-21.86%
PT rev (3m)-20.3%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-84.89%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-22.02%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-11.47%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 29 | ||
| P/S | 1.79 | ||
| P/FCF | 16.09 | ||
| P/OCF | 14.6 | ||
| P/B | 6.1 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)2.67
EY5.24%
EPS(NY)1.76
Fwd EY3.45%
FCF(TTM)3.17
FCFY6.21%
OCF(TTM)3.49
OCFY6.85%
SpS28.53
BVpS8.36
TBVpS8.06
PEG (NY)N/A
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.66% | ||
| ROICexc | 27.35% | ||
| ROICexgc | 28.22% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
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-Score5
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 | 4.3 |
F-Score5
WACC9.64%
ROIC/WACC1.73
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)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
Revenue Next Year-11.18%
Revenue Next 2Y-6.4%
Revenue Next 3Y-2.52%
Revenue Next 5Y0.76%
EBIT growth 1Y-11.36%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-34.37%
EBIT Next 3Y-7.4%
EBIT Next 5Y4.41%
FCF growth 1Y39.87%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y23.53%
OCF growth 3Y3.73%
OCF growth 5Y4.71%