NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - Deutsche Boerse Ag - US6541061031 - Common Stock - Currency: EUR
Taking everything into account, NKE scores 6 out of 10 in our fundamental rating. NKE was compared to 40 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NKE has a expensive valuation and it also scores bad on growth.
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.
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
NKE has a better Return On Assets (11.93%) than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.18%, NKE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.66%, NKE belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NKE is significantly above the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.66% |
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
The Profit Margin of NKE (9.43%) is better than 72.50% of its industry peers.
In the last couple of years the Profit Margin of NKE has grown nicely.
NKE's Operating Margin of 11.10% is in line compared to the rest of the industry. NKE outperforms 55.00% of its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 43.82%, NKE is not doing good in the industry: 90.00% 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 | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% |
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.
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.
The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
NKE has an Altman-Z score of 4.31. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE has a Altman-Z score of 4.31. This is amongst the best in the industry. NKE outperforms 85.00% of its industry peers.
NKE has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
The Debt to FCF ratio of NKE (1.69) is better than 85.00% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
NKE has a Debt to Equity ratio (0.57) which is in line with 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 | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.73
WACC9.64%
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 better Current ratio (2.19) than 85.00% of its industry peers.
A Quick Ratio of 1.52 indicates that NKE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.52, NKE belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased strongly by -10.88% in the last year.
NKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -7.30%.
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)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
3.2 Future
The Earnings Per Share is expected to grow by 3.45% on average over the next years.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 0.76% on average per year.
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue Next Year-11.18%
Revenue Next 2Y-6.38%
Revenue Next 3Y-2.45%
Revenue Next 5Y0.76%
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
Based on the Price/Earnings ratio of 18.98, the valuation of NKE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.79, NKE is valued a bit cheaper.
NKE is valuated quite expensively with a Price/Forward Earnings ratio of 28.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE is on the same level as its industry peers.
NKE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 28.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 72.50% of the companies are valued more cheaply.
60.00% 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 | 15.97 | ||
| EV/EBITDA | 13.46 |
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 -10.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.22
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, NKE has a reasonable but not impressive dividend return.
In the last 3 months the price of NKE has falen by -28.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.41, NKE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
50.33% 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.
DP50.33%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
FRA:NKE (4/25/2025, 7:00:00 PM)
50.5
-0.5 (-0.98%)
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 Cap74.54B
Analysts72.56
Price Target67.57 (33.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.26
Dividend Growth(5Y)11.2%
DP50.33%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.71%
Min EPS beat(2)21.88%
Max EPS beat(2)83.55%
EPS beat(4)4
Avg EPS beat(4)39.67%
Min EPS beat(4)19.98%
Max EPS beat(4)83.55%
EPS beat(8)7
Avg EPS beat(8)25.67%
EPS beat(12)11
Avg EPS beat(12)24.12%
EPS beat(16)15
Avg EPS beat(16)26.57%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)0.86%
Max Revenue beat(2)1.38%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)1.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)8
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)1.3%
PT rev (1m)-8.76%
PT rev (3m)-8.87%
EPS NQ rev (1m)-60.94%
EPS NQ rev (3m)-84.89%
EPS NY rev (1m)1.83%
EPS NY rev (3m)-22.02%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-11.47%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.98 | ||
| Fwd PE | 28.78 | ||
| P/S | 1.77 | ||
| P/FCF | 15.97 | ||
| P/OCF | 14.48 | ||
| P/B | 6.05 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)2.66
EY5.27%
EPS(NY)1.75
Fwd EY3.47%
FCF(TTM)3.16
FCFY6.26%
OCF(TTM)3.49
OCFY6.9%
SpS28.48
BVpS8.34
TBVpS8.05
PEG (NY)N/A
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.66% | ||
| ROICexc | 27.35% | ||
| ROICexgc | 28.22% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
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-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 66.63% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.64% | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 4.31 |
F-Score5
WACC9.64%
ROIC/WACC1.73
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)-10.88%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-29.87%
EPS Next Y-42.71%
EPS Next 2Y-27.04%
EPS Next 3Y-10.75%
EPS Next 5Y3.45%
Revenue 1Y (TTM)-7.3%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-9.33%
Revenue Next Year-11.18%
Revenue Next 2Y-6.38%
Revenue Next 3Y-2.45%
Revenue Next 5Y0.76%
EBIT growth 1Y-11.36%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-34.37%
EBIT Next 3Y-7.4%
EBIT Next 5Y4.41%
FCF growth 1Y39.87%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y23.53%
OCF growth 3Y3.73%
OCF growth 5Y4.71%