NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
FRA:NKE - Deutsche Boerse Ag - US6541061031 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to NKE. NKE was compared to 44 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 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.
In the past 5 years NKE has always been profitable.
Of the past 5 years NKE 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.93%, NKE belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
NKE's Return On Equity of 32.18% is amongst the best of the industry. NKE outperforms 93.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.77%, NKE belongs to the top of the industry, outperforming 86.36% 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 10.71%.
The last Return On Invested Capital (16.77%) for NKE is above the 3 year average (16.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROIC | 16.77% |
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 9.43%, NKE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a Operating Margin (11.10%) which is comparable to the rest of the industry.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a Gross Margin of 43.82%. This is amonst the worse of the industry: NKE underperforms 84.09% of its industry peers.
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-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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NKE is creating value.
Compared to 1 year ago, NKE has less shares outstanding
Compared to 5 years ago, NKE has less shares outstanding
The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
NKE has an Altman-Z score of 4.84. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE's Altman-Z score of 4.84 is fine compared to the rest of the industry. NKE outperforms 79.55% of its industry peers.
The Debt to FCF ratio of NKE is 1.69, which is an excellent value as it means it would take NKE, only 1.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.69, NKE belongs to the top of the industry, outperforming 86.36% 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.
NKE has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
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 | 4.84 |
ROIC/WACC1.98
WACC8.45%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
NKE's Current ratio of 2.19 is fine compared to the rest of the industry. NKE outperforms 79.55% 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 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.40%.
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 -9.84% in the last year.
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)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
3.2 Future
The Earnings Per Share is expected to grow by 19.35% 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 4.30% on average per year.
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
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.
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
NKE is valuated quite expensively with a Price/Earnings ratio of 32.97.
NKE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, NKE is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 36.69, the valuation of NKE can be described as expensive.
NKE's Price/Forward Earnings is on the same level as the industry average.
NKE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 36.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
NKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.84 | ||
| EV/EBITDA | 16.93 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
A more expensive valuation may be justified as NKE's earnings are expected to grow with 21.23% in the coming years.
PEG (NY)N/A
PEG (5Y)9.78
EPS Next 2Y9.9%
EPS Next 3Y21.23%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, NKE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.20%!
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 earnings are growing more, so the dividend growth is sustainable.
DP50.33%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
FRA:NKE (6/30/2025, 5:25:44 PM)
60.99
-0.85 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.22%
Inst Owner ChangeN/A
Ins Owners0.94%
Ins Owner ChangeN/A
Market Cap90.02B
Analysts72
Price Target64.57 (5.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend1.22
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)-3.46%
PT rev (3m)-24.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.98%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-21.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 36.69 | ||
| P/S | 2.2 | ||
| P/FCF | 19.84 | ||
| P/OCF | 18 | ||
| P/B | 7.52 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 16.93 |
EPS(TTM)1.85
EY3.03%
EPS(NY)1.66
Fwd EY2.73%
FCF(TTM)3.07
FCFY5.04%
OCF(TTM)3.39
OCFY5.56%
SpS27.68
BVpS8.11
TBVpS7.82
PEG (NY)N/A
PEG (5Y)9.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 32.18% | ||
| ROCE | 19.97% | ||
| ROIC | 16.77% | ||
| ROICexc | 27.53% | ||
| ROICexgc | 28.41% | ||
| OM | 11.1% | ||
| PM (TTM) | 9.43% | ||
| GM | 43.82% | ||
| FCFM | 11.11% |
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%
ROICexcg growth 3Y-18.4%
ROICexcg 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 Turnover1.27
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 | 4.84 |
F-Score4
WACC8.45%
ROIC/WACC1.98
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.4%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-86.14%
EPS Next Y-9.92%
EPS Next 2Y9.9%
EPS Next 3Y21.23%
EPS Next 5Y19.35%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%-11.97%
Revenue Next Year-1.42%
Revenue Next 2Y2.08%
Revenue Next 3Y3.85%
Revenue Next 5Y4.3%
EBIT growth 1Y-11.36%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year10.67%
EBIT Next 3Y25.27%
EBIT Next 5Y21.09%
FCF growth 1Y-14.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-17.12%
OCF growth 3YN/A
OCF growth 5YN/A