NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - FRA:NKE - US6541061031 - Common Stock
55.46 EUR
-0.79 (-1.4%)
Overall NKE gets a fundamental rating of 5 out of 10. We evaluated NKE against 43 industry peers in the Textiles, Apparel & Luxury Goods industry. While NKE has a great health rating, its profitability is only average at the moment. NKE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
In the past year NKE had a positive cash flow from operations.
NKE had positive earnings in each of the past 5 years.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
NKE has a better Return On Assets (7.75%) than 74.47% of its industry peers.
With an excellent Return On Equity value of 21.50%, NKE belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
NKE's Return On Invested Capital of 10.87% is in line compared to the rest of the industry. NKE outperforms 55.32% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 11.78%.
The last Return On Invested Capital (10.87%) 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 | 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
Looking at the Profit Margin, with a value of 6.23%, NKE is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
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 7.36%. This is comparable to the rest of the industry: NKE outperforms 40.43% 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 89.36% 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
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.
The number of shares outstanding for NKE has been reduced compared to 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.
NKE has a better Altman-Z score (4.34) than 82.98% of its industry peers.
NKE has a debt to FCF ratio of 2.66. This is a good value and a sign of high solvency as NKE would need 2.66 years to pay back of all of its debts.
The Debt to FCF ratio of NKE (2.66) is better than 78.72% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that NKE is somewhat dependend on debt financing.
NKE has a Debt to Equity ratio (0.59) which 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/WACC1.01
WACC10.71%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
NKE has a Current ratio of 2.19. This is in the better half of the industry: NKE outperforms 78.72% of its industry peers.
NKE has a Quick Ratio of 1.45. 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 (1.45) than 80.85% of its industry peers.
| 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.
Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -7.14% in the last year.
NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
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
The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 4.85% on average per year.
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.8%
EPS Next 5Y16.96%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 33.21, NKE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NKE to the average of the S&P500 Index (25.89), we can say NKE is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 25.54, the valuation of NKE can be described as expensive.
NKE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NKE to the average of the S&P500 Index (34.59), we can say NKE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 25.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued expensively inside the industry as 80.85% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.74 | ||
| EV/EBITDA | 22.07 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
NKE's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)9.85
EPS Next 2Y8.21%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.88, NKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
80.59% of the earnings are spent on dividend by NKE. This is not a sustainable payout ratio.
The dividend of NKE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.59%
EPS Next 2Y8.21%
EPS Next 3Y12.8%
FRA:NKE (11/14/2025, 7:00:00 PM)
55.46
-0.79 (-1.4%)
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 Cap81.98B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75
Price Target73.22 (32.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend1.33
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)5.72%
PT rev (3m)8.71%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-26.18%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.21 | ||
| Fwd PE | 25.54 | ||
| P/S | 2.06 | ||
| P/FCF | 31.74 | ||
| P/OCF | 27.08 | ||
| P/B | 7.09 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 22.07 |
EPS(TTM)1.67
EY3.01%
EPS(NY)2.17
Fwd EY3.92%
FCF(TTM)1.75
FCFY3.15%
OCF(TTM)2.05
OCFY3.69%
SpS26.97
BVpS7.82
TBVpS7.53
PEG (NY)N/A
PEG (5Y)9.85
Graham Number17.14
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
WACC10.71%
ROIC/WACC1.01
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 3Y12.8%
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 3Y3.94%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y19.05%
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%.