NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
56.19 EUR
-0.44 (-0.78%)
We assign a fundamental rating of 5 out of 10 to NKE. NKE was compared to 51 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of NKE get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years NKE has always 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 (6.68%) than 70.59% of its industry peers.
NKE's Return On Equity of 17.92% is fine compared to the rest of the industry. NKE outperforms 68.63% of its industry peers.
NKE has a Return On Invested Capital (9.77%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NKE is above the industry average of 11.80%.
The last Return On Invested Capital (9.77%) 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 | 6.68% | ||
| ROE | 17.92% | ||
| ROIC | 9.77% |
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
NKE's Profit Margin of 5.43% is fine compared to the rest of the industry. NKE outperforms 60.78% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a Operating Margin (6.54%) which is in line with its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 41.13%, NKE is not doing good in the industry: 84.31% of the companies in the same industry are doing better.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% |
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.
NKE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NKE has been reduced compared to 5 years ago.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
NKE has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as NKE would need 3.24 years to pay back of all of its debts.
NKE has a Debt to FCF ratio of 3.24. This is in the better half of the industry: NKE outperforms 62.75% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that NKE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.50, NKE is doing good in the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC11.26%
2.3 Liquidity
A Current Ratio of 2.06 indicates that NKE has no problem at all paying its short term obligations.
NKE has a better Current ratio (2.06) than 74.51% of its industry peers.
NKE has a Quick Ratio of 1.40. This is a normal value and indicates that NKE is financially healthy and should not expect problems in meeting its short term obligations.
NKE has a better Quick ratio (1.40) than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.85%.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -5.03%.
Measured over the past years, NKE shows a small growth in Revenue. The Revenue has been growing by 4.36% on average per year.
EPS 1Y (TTM)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
3.2 Future
NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.53% yearly.
The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y14.53%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
Revenue Next 5Y5.09%
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
With a Price/Earnings ratio of 38.49, NKE can be considered very expensive at the moment.
NKE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, NKE is valued a bit more expensive.
With a Price/Forward Earnings ratio of 26.83, NKE can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as NKE.
NKE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.49 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
74.51% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
60.78% of the companies in the same industry are cheaper than NKE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.07 | ||
| EV/EBITDA | 25.15 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.42
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, NKE pays a better dividend. On top of this NKE pays more dividend than 82.35% of the companies listed in the same industry.
NKE's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 94.06% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP94.06%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
FRA:NKE (1/12/2026, 10:21:06 AM)
56.19
-0.44 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.45%
Inst Owner ChangeN/A
Ins Owners0.69%
Ins Owner ChangeN/A
Market Cap83.06B
Revenue(TTM)46.51B
Net Income(TTM)2.52B
Analysts76.28
Price Target69.04 (22.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend1.33
Dividend Growth(5Y)10.7%
DP94.06%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.62%
Min EPS beat(2)39.21%
Max EPS beat(2)78.04%
EPS beat(4)4
Avg EPS beat(4)52.07%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)35.87%
EPS beat(12)11
Avg EPS beat(12)31.06%
EPS beat(16)15
Avg EPS beat(16)27.2%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)0.69%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)0.69%
Max Revenue beat(4)5.51%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)8
Avg Revenue beat(12)1%
Revenue beat(16)12
Avg Revenue beat(16)1.33%
PT rev (1m)-5.38%
PT rev (3m)-0.32%
EPS NQ rev (1m)-36.38%
EPS NQ rev (3m)-40.95%
EPS NY rev (1m)-3.58%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.49 | ||
| Fwd PE | 26.83 | ||
| P/S | 2.08 | ||
| P/FCF | 39.07 | ||
| P/OCF | 31.64 | ||
| P/B | 6.87 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | 25.15 |
EPS(TTM)1.46
EY2.6%
EPS(NY)2.09
Fwd EY3.73%
FCF(TTM)1.44
FCFY2.56%
OCF(TTM)1.78
OCFY3.16%
SpS27.03
BVpS8.18
TBVpS7.89
PEG (NY)N/A
PEG (5Y)11.42
Graham Number16.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 17.92% | ||
| ROCE | 11.63% | ||
| ROIC | 9.77% | ||
| ROICexc | 14.35% | ||
| ROICexgc | 14.76% | ||
| OM | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% | ||
| FCFM | 5.32% |
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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 75.85% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.25% | ||
| Profit Quality | 98.06% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | N/A |
F-Score5
WACC11.26%
ROIC/WACC0.87
Cap/Depr(3y)88.17%
Cap/Depr(5y)88.39%
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)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y14.53%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
Revenue Next 5Y5.09%
EBIT growth 1Y-48.04%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y17.24%
EBIT Next 5Y20.93%
FCF growth 1Y-60.76%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-57.75%
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.
Can you provide the valuation status for NIKE INC -CL B?
ChartMill assigns a valuation rating of 1 / 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 expected EPS growth for NIKE INC -CL B (NKE.DE) stock?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE.DE) is expected to decline by -24.92% in the next year.
How sustainable is the dividend of NIKE INC -CL B (NKE.DE) stock?
The dividend rating of NIKE INC -CL B (NKE.DE) is 5 / 10 and the dividend payout ratio is 94.06%.