NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - Deutsche Boerse Ag - US6541061031 - Common Stock - Currency: EUR
NKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making NKE a very profitable company, without any liquidiy or solvency issues. NKE is valued expensive and it does not seem to be growing.
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.
In the past 5 years NKE has always been profitable.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.87%, NKE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Equity value of 34.81%, NKE belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of NKE (18.25%) is better than 90.48% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 18.84%. This is significantly above the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 34.81% | ||
| ROIC | 18.25% |
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
NKE has a better Profit Margin (9.98%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of NKE has grown nicely.
With a decent Operating Margin value of 11.95%, NKE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
NKE's Operating Margin has been stable in the last couple of years.
NKE's Gross Margin of 44.60% is on the low side compared to the rest of the industry. NKE is outperformed by 83.33% of its industry peers.
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 | 11.95% | ||
| PM (TTM) | 9.98% | ||
| GM | 44.6% |
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
NKE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
NKE has a better debt/assets ratio than last year.
2.2 Solvency
NKE has an Altman-Z score of 5.10. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.10, NKE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of NKE is 1.64, which is an excellent value as it means it would take NKE, only 1.64 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.64, NKE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
NKE has a Debt/Equity ratio of 0.57. This is a neutral value indicating NKE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, NKE is in line with its industry, outperforming 57.14% of the companies in the same industry.
Although NKE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.9
WACC9.62%
2.3 Liquidity
A Current Ratio of 2.22 indicates that NKE has no problem at all paying its short term obligations.
NKE's Current ratio of 2.22 is amongst the best of the industry. NKE outperforms 90.48% of its industry peers.
NKE has a Quick Ratio of 1.51. This is a normal value and indicates that NKE is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.51, NKE belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased by -4.68% in the last year.
Measured over the past years, NKE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.53% on average per year.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -4.97%.
Measured over the past years, NKE shows a small growth in Revenue. The Revenue has been growing by 5.60% on average per year.
EPS 1Y (TTM)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
3.2 Future
NKE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.75% yearly.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y-43.74%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
EPS Next 5Y1.75%
Revenue Next Year-10.91%
Revenue Next 2Y-5.03%
Revenue Next 3Y-1.52%
Revenue Next 5Y1.18%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.86, NKE is valued on the expensive side.
NKE's Price/Earnings ratio is a bit cheaper when compared to the industry. NKE is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. NKE is around the same levels.
Based on the Price/Forward Earnings ratio of 31.53, the valuation of NKE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.10. NKE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 31.53 |
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 69.05% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NKE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.83 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
NKE's earnings are expected to decrease with -6.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.8
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, NKE has a reasonable but not impressive dividend return.
NKE's Dividend Yield is a higher than the industry average which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.33, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
On average, the dividend of NKE grows each year by 11.20%, which is quite nice.
Dividend Growth(5Y)11.2%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
45.78% of the earnings are spent on dividend by NKE. This is a bit on the high side, but may be sustainable.
The dividend of NKE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.78%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
FRA:NKE (3/10/2025, 10:47:31 AM)
71.59
+0.39 (+0.55%)
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 Cap105.89B
Analysts72.86
Price Target85.56 (19.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend1.32
Dividend Growth(5Y)11.2%
DP45.78%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.57%
Min EPS beat(2)21.88%
Max EPS beat(2)33.27%
EPS beat(4)4
Avg EPS beat(4)19.68%
Min EPS beat(4)3.59%
Max EPS beat(4)33.27%
EPS beat(8)7
Avg EPS beat(8)20.56%
EPS beat(12)11
Avg EPS beat(12)18.91%
EPS beat(16)15
Avg EPS beat(16)22.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)0.86%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)8
Avg Revenue beat(12)0.93%
Revenue beat(16)9
Avg Revenue beat(16)0.78%
PT rev (1m)0.61%
PT rev (3m)-3.55%
EPS NQ rev (1m)1.14%
EPS NQ rev (3m)-55.26%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-24.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 31.53 | ||
| P/S | 2.35 | ||
| P/FCF | 20.83 | ||
| P/OCF | 18.78 | ||
| P/B | 8.19 | ||
| P/tB | 8.49 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)3
EY4.19%
EPS(NY)2.27
Fwd EY3.17%
FCF(TTM)3.44
FCFY4.8%
OCF(TTM)3.81
OCFY5.32%
SpS30.5
BVpS8.74
TBVpS8.43
PEG (NY)N/A
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 34.81% | ||
| ROCE | 21.91% | ||
| ROIC | 18.25% | ||
| ROICexc | 28.72% | ||
| ROICexgc | 29.59% | ||
| OM | 11.95% | ||
| PM (TTM) | 9.98% | ||
| GM | 44.6% | ||
| FCFM | 11.27% |
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-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 71.79% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.44% | ||
| Profit Quality | 112.94% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 5.1 |
F-Score6
WACC9.62%
ROIC/WACC1.9
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)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
EPS Next Y-43.74%
EPS Next 2Y-18.92%
EPS Next 3Y-6.49%
EPS Next 5Y1.75%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
Revenue Next Year-10.91%
Revenue Next 2Y-5.03%
Revenue Next 3Y-1.52%
Revenue Next 5Y1.18%
EBIT growth 1Y-3.43%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-33.61%
EBIT Next 3Y-3.3%
EBIT Next 5Y3.14%
FCF growth 1Y209.65%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y128.57%
OCF growth 3Y3.73%
OCF growth 5Y4.71%