NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - FRA:NKE - US6541061031 - Common Stock
59.73 EUR
-0.19 (-0.32%)
Taking everything into account, NKE scores 5 out of 10 in our fundamental rating. NKE was compared to 49 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
NKE had a positive operating cash flow in the past year.
Each year in the past 5 years NKE has been profitable.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
NKE's Return On Assets of 7.75% is fine compared to the rest of the industry. NKE outperforms 75.51% of its industry peers.
The Return On Equity of NKE (21.50%) is better than 79.59% of its industry peers.
NKE's Return On Invested Capital of 10.87% is in line compared to the rest of the industry. NKE outperforms 59.18% of its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 11.40%.
The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(10.87%). The reason for the recent decline needs to be investigated.
| 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
NKE has a better Profit Margin (6.23%) than 67.35% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE's Operating Margin of 7.36% is in line compared to the rest of the industry. NKE outperforms 44.90% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
NKE's Gross Margin of 41.94% is on the low side compared to the rest of the industry. NKE is outperformed by 83.67% of its industry peers.
NKE's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, NKE has less shares outstanding
NKE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
NKE has an Altman-Z score of 4.51. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE's Altman-Z score of 4.51 is amongst the best of the industry. NKE outperforms 81.63% 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.
With a decent Debt to FCF ratio value of 2.66, NKE is doing good in the industry, outperforming 77.55% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that NKE is somewhat dependend on debt financing.
NKE has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: NKE outperforms 46.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.51 |
ROIC/WACC1.03
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.19, NKE is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
NKE has a better Quick ratio (1.45) than 81.63% 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.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
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)-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
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.01% on average per year.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 4.91% on average per year.
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.54%
EPS Next 5Y17.01%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y4.91%
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.
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 35.55, NKE can be considered very expensive at the moment.
NKE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.89, NKE is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.42, the valuation of NKE can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NKE.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, NKE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 27.42 |
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 77.55% of the companies in the same industry.
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 65.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.07 | ||
| EV/EBITDA | 23.73 |
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 12.54% in the coming years.
PEG (NY)N/A
PEG (5Y)10.55
EPS Next 2Y8.21%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, 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 2.31, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 2Y8.21%
EPS Next 3Y12.54%
FRA:NKE (10/24/2025, 7:00:00 PM)
59.73
-0.19 (-0.32%)
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 Cap88.29B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts73.02
Price Target69.26 (15.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)3.03%
PT rev (3m)3.86%
EPS NQ rev (1m)-25.84%
EPS NQ rev (3m)-26.47%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 27.42 | ||
| P/S | 2.21 | ||
| P/FCF | 34.07 | ||
| P/OCF | 29.08 | ||
| P/B | 7.61 | ||
| P/tB | 7.91 | ||
| EV/EBITDA | 23.73 |
EPS(TTM)1.68
EY2.81%
EPS(NY)2.18
Fwd EY3.65%
FCF(TTM)1.75
FCFY2.93%
OCF(TTM)2.05
OCFY3.44%
SpS27.06
BVpS7.85
TBVpS7.56
PEG (NY)N/A
PEG (5Y)10.55
Graham Number17.22
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 | 4.51 |
F-Score4
WACC10.57%
ROIC/WACC1.03
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 3Y12.54%
EPS Next 5Y17.01%
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 5Y4.91%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y19.11%
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 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 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%.