NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
55.81 EUR
+0.18 (+0.32%)
NKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NKE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
In the past year NKE had a positive cash flow from operations.
Each year in the past 5 years NKE has been profitable.
NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NKE has a better Return On Assets (7.75%) than 66.67% of its industry peers.
NKE's Return On Equity of 21.50% is fine compared to the rest of the industry. NKE outperforms 79.17% of its industry peers.
With a Return On Invested Capital value of 10.87%, NKE perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 12.86%.
The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(10.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 21.5% | ||
| ROIC | 10.87% |
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 NKE (6.23%) is better than 60.42% of its industry peers.
In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
The Operating Margin of NKE (7.36%) is worse than 62.50% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.94%, NKE is doing worse than 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of NKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% |
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
NKE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
NKE has an Altman-Z score of 4.34. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NKE (4.34) is better than 72.92% of its industry peers.
The Debt to FCF ratio of NKE is 2.66, which is a good value as it means it would take NKE, 2.66 years of fcf income to pay off all of its debts.
NKE has a Debt to FCF ratio of 2.66. This is in the better half of the industry: NKE outperforms 75.00% of its industry peers.
NKE has a Debt/Equity ratio of 0.59. This is a neutral value indicating NKE is somewhat dependend on debt financing.
The Debt to Equity ratio of NKE (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.34 |
ROIC/WACC0.99
WACC10.93%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.19, NKE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, NKE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.44%.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.37% yearly.
The Revenue has decreased by -7.14% in the past year.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
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 16.96% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.87%
EPS Next 5Y16.96%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.99%
Revenue Next 5Y4.85%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.22, NKE can be considered very expensive at the moment.
NKE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NKE to the average of the S&P500 Index (26.15), we can say NKE is valued slightly more expensively.
With a Price/Forward Earnings ratio of 25.63, NKE can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NKE.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, NKE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 25.63 |
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 72.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NKE is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.84 | ||
| EV/EBITDA | 22.07 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NKE's earnings are expected to grow with 12.87% in the coming years.
PEG (NY)N/A
PEG (5Y)9.85
EPS Next 2Y8.21%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.55%.
Compared to an average industry Dividend Yield of 2.78, NKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
Dividend Growth(5Y)10.7%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NKE pays out 80.59% of its income as dividend. This is not a sustainable payout ratio.
NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.59%
EPS Next 2Y8.21%
EPS Next 3Y12.87%
FRA:NKE (12/3/2025, 12:42:38 PM)
55.81
+0.18 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.27%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap82.50B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75
Price Target73.54 (31.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend1.34
Dividend Growth(5Y)10.7%
DP80.59%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.76%
Min EPS beat(2)7.49%
Max EPS beat(2)78.04%
EPS beat(4)4
Avg EPS beat(4)47.74%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)33.55%
EPS beat(12)11
Avg EPS beat(12)30.36%
EPS beat(16)15
Avg EPS beat(16)26.66%
Revenue beat(2)2
Avg Revenue beat(2)3.98%
Min Revenue beat(2)2.46%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)2.55%
Min Revenue beat(4)0.86%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)8
Avg Revenue beat(12)1.35%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)6.17%
PT rev (3m)6.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 25.63 | ||
| P/S | 2.06 | ||
| P/FCF | 31.84 | ||
| P/OCF | 27.17 | ||
| P/B | 7.11 | ||
| P/tB | 7.39 | ||
| EV/EBITDA | 22.07 |
EPS(TTM)1.68
EY3.01%
EPS(NY)2.18
Fwd EY3.9%
FCF(TTM)1.75
FCFY3.14%
OCF(TTM)2.05
OCFY3.68%
SpS27.05
BVpS7.84
TBVpS7.55
PEG (NY)N/A
PEG (5Y)9.85
Graham Number17.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 21.5% | ||
| ROCE | 12.94% | ||
| ROIC | 10.87% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 16.55% | ||
| OM | 7.36% | ||
| PM (TTM) | 6.23% | ||
| GM | 41.94% | ||
| FCFM | 6.48% |
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%
ROICexgc growth 3Y-18.4%
ROICexgc 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 63.83% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.36% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.34 |
F-Score4
WACC10.93%
ROIC/WACC0.99
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)-44.44%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-30%
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.87%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.99%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y18.88%
EBIT Next 5Y19.88%
FCF growth 1Y-32.53%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-34.92%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%
NIKE INC -CL B / NKE.DE FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to NKE.DE.
What is the valuation status for NKE stock?
ChartMill assigns a valuation rating of 2 / 10 to NIKE INC -CL B (NKE.DE). This can be considered as Overvalued.
How profitable is NIKE INC -CL B (NKE.DE) stock?
NIKE INC -CL B (NKE.DE) has a profitability rating of 6 / 10.
What is the earnings growth outlook for NIKE INC -CL B?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE.DE) is expected to decline by -22.25% in the next year.
Can you provide the dividend sustainability for NKE stock?
The dividend rating of NIKE INC -CL B (NKE.DE) is 5 / 10 and the dividend payout ratio is 80.59%.