NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - FRA:NKE - US6541061031 - Common Stock
61.07 EUR
-0.51 (-0.83%)
NKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, NKE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
NKE had a positive operating cash flow in the past year.
Each year in the past 5 years NKE has been profitable.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NKE (8.80%) is better than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 24.36%, NKE belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.95%, NKE is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 10.76%.
The last Return On Invested Capital (11.95%) for NKE is well below the 3 year average (16.64%), which needs to be investigated, but indicates that NKE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 24.36% | ||
| ROIC | 11.95% |
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 (6.95%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
NKE has a Operating Margin of 7.99%. This is comparable to the rest of the industry: NKE outperforms 44.44% 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 worse Gross Margin (42.73%) than 84.44% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.99% | ||
| PM (TTM) | 6.95% | ||
| GM | 42.73% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NKE is creating some 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.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.76 indicates that NKE is not in any danger for bankruptcy at the moment.
The Altman-Z score of NKE (4.76) is better than 77.78% of its industry peers.
The Debt to FCF ratio of NKE is 2.44, which is a good value as it means it would take NKE, 2.44 years of fcf income to pay off all of its debts.
NKE's Debt to FCF ratio of 2.44 is fine compared to the rest of the industry. NKE outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that NKE is somewhat dependend on debt financing.
NKE's Debt to Equity ratio of 0.60 is in line compared to the rest of the industry. NKE outperforms 46.67% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 4.76 |
ROIC/WACC1.17
WACC10.21%
2.3 Liquidity
A Current Ratio of 2.21 indicates that NKE has no problem at all paying its short term obligations.
NKE has a better Current ratio (2.21) than 80.00% of its industry peers.
A Quick Ratio of 1.50 indicates that NKE should not have too much problems paying its short term obligations.
NKE has a better Quick ratio (1.50) than 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
NKE 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.
The Revenue has decreased by -9.84% in the past year.
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
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
EPS Next 5Y16.32%
Revenue Next Year-0.13%
Revenue Next 2Y2.54%
Revenue Next 3Y3.48%
Revenue Next 5Y4.4%
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
The Price/Earnings ratio is 33.55, which means the current valuation is very expensive for NKE.
NKE's Price/Earnings ratio is in line with the industry average.
NKE is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 43.08, NKE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 62.22% of the companies listed in the same industry.
NKE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.55 | ||
| Fwd PE | 43.08 |
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 75.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NKE is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.67 | ||
| EV/EBITDA | 23.23 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.95
EPS Next 2Y6.8%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.15%.
NKE's Dividend Yield is comparable with the industry average which is at 3.12.
Compared to an average S&P500 Dividend Yield of 2.38, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
On average, the dividend of NKE grows each year by 10.70%, which is quite nice.
Dividend Growth(5Y)10.7%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NKE pays out 71.45% 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.
DP71.45%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
FRA:NKE (9/18/2025, 5:29:45 PM)
61.07
-0.51 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.88%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap90.19B
Analysts72.09
Price Target67.22 (10.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.32
Dividend Growth(5Y)10.7%
DP71.45%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)45.52%
Min EPS beat(2)7.49%
Max EPS beat(2)83.55%
EPS beat(4)4
Avg EPS beat(4)36.55%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)26.91%
EPS beat(12)11
Avg EPS beat(12)23.86%
EPS beat(16)15
Avg EPS beat(16)21.98%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.38%
Max Revenue beat(2)2.46%
Revenue beat(4)3
Avg Revenue beat(4)0.8%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)2.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)8
Avg Revenue beat(12)1.09%
Revenue beat(16)10
Avg Revenue beat(16)0.77%
PT rev (1m)-0.2%
PT rev (3m)1.87%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)-25.38%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-14.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.55 | ||
| Fwd PE | 43.08 | ||
| P/S | 2.31 | ||
| P/FCF | 32.67 | ||
| P/OCF | 28.87 | ||
| P/B | 8.08 | ||
| P/tB | 8.4 | ||
| EV/EBITDA | 23.23 |
EPS(TTM)1.82
EY2.98%
EPS(NY)1.42
Fwd EY2.32%
FCF(TTM)1.87
FCFY3.06%
OCF(TTM)2.12
OCFY3.46%
SpS26.49
BVpS7.56
TBVpS7.27
PEG (NY)N/A
PEG (5Y)9.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 24.36% | ||
| ROCE | 14.23% | ||
| ROIC | 11.95% | ||
| ROICexc | 18.43% | ||
| ROICexgc | 18.99% | ||
| OM | 7.99% | ||
| PM (TTM) | 6.95% | ||
| GM | 42.73% | ||
| FCFM | 7.06% |
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 | 0.6 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 53.22% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 9.52 | ||
| Cash Conversion | 82% | ||
| Profit Quality | 101.52% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.76 |
F-Score4
WACC10.21%
ROIC/WACC1.17
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)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
EPS Next Y-22.31%
EPS Next 2Y6.8%
EPS Next 3Y11.69%
EPS Next 5Y16.32%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-0.13%
Revenue Next 2Y2.54%
Revenue Next 3Y3.48%
Revenue Next 5Y4.4%
EBIT growth 1Y-44.66%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.98%
EBIT Next 3Y19.07%
EBIT Next 5Y18.89%
FCF growth 1Y-50.61%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-50.22%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%