NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
55.95 EUR
+1.17 (+2.14%)
NKE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NKE is quite expensive at the moment. 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.
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
Looking at the Return On Assets, with a value of 7.75%, NKE is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.50%, NKE belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.87%, NKE is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NKE is above the industry average of 11.67%.
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
The Profit Margin of NKE (6.23%) is better than 65.38% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
The Operating Margin of NKE (7.36%) is comparable to the rest of the industry.
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 84.62% 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
NKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NKE has less shares outstanding
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 4.31. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE's Altman-Z score of 4.31 is fine compared to the rest of the industry. NKE outperforms 76.92% 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 78.85% 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.
With a Debt to Equity ratio value of 0.59, NKE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.31 |
ROIC/WACC0.97
WACC11.21%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.19, NKE is doing good in the industry, outperforming 78.85% of the companies in the same industry.
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.
The Quick ratio of NKE (1.45) is better than 78.85% 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%.
Measured over the past 5 years, NKE shows a small growth in Earnings Per Share. The EPS has been growing by 3.37% on average per year.
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
NKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.96% yearly.
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-22.13%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
EPS Next 5Y16.96%
Revenue Next Year1.77%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
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.
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
The Price/Earnings ratio is 33.30, which means the current valuation is very expensive for NKE.
The rest of the industry has a similar Price/Earnings ratio as NKE.
NKE is valuated rather expensively when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.73, NKE can be considered very expensive at the moment.
NKE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, NKE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
NKE's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NKE is more expensive than 80.77% of the companies in the same industry.
61.54% 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 | 31.99 | ||
| EV/EBITDA | 21.77 |
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 12.61% in the coming years.
PEG (NY)N/A
PEG (5Y)9.88
EPS Next 2Y8.23%
EPS Next 3Y12.61%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
NKE's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.31, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 80.59% 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.
DP80.59%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
FRA:NKE (12/10/2025, 7:00:00 PM)
55.95
+1.17 (+2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap82.71B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75.45
Price Target72.96 (30.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)-0.29%
PT rev (3m)6.1%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-25.87%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 25.73 | ||
| P/S | 2.07 | ||
| P/FCF | 31.99 | ||
| P/OCF | 27.3 | ||
| P/B | 7.15 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 21.77 |
EPS(TTM)1.68
EY3%
EPS(NY)2.17
Fwd EY3.89%
FCF(TTM)1.75
FCFY3.13%
OCF(TTM)2.05
OCFY3.66%
SpS27
BVpS7.83
TBVpS7.54
PEG (NY)N/A
PEG (5Y)9.88
Graham Number17.2
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 | 4.31 |
F-Score4
WACC11.21%
ROIC/WACC0.97
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-22.13%
EPS Next 2Y8.23%
EPS Next 3Y12.61%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
Revenue Next Year1.77%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year4.49%
EBIT Next 3Y19.16%
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 6 / 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 7 / 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 -22.13% 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%.