NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
48.73 EUR
-0.26 (-0.53%)
Overall NKE gets a fundamental rating of 5 out of 10. We evaluated NKE against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, NKE is valued expensive at the moment.
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.
NKE had positive earnings in each of the past 5 years.
In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NKE (7.75%) is better than 68.63% of its industry peers.
NKE's Return On Equity of 21.50% is fine compared to the rest of the industry. NKE outperforms 78.43% of its industry peers.
With a Return On Invested Capital value of 10.87%, NKE perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 12.60%.
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 60.78% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
NKE has a Operating Margin of 7.36%. This is in the lower half of the industry: NKE underperforms 60.78% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
With a Gross Margin value of 41.94%, NKE is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NKE is still creating some 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.
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
NKE has an Altman-Z score of 4.08. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
NKE's Altman-Z score of 4.08 is fine compared to the rest of the industry. NKE outperforms 66.67% 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.
NKE has a Debt to FCF ratio of 2.66. This is in the better half of the industry: NKE outperforms 72.55% 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 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.97
WACC11.2%
2.3 Liquidity
A Current Ratio of 2.19 indicates that NKE has no problem at all paying its short term obligations.
The Current ratio of NKE (2.19) is better than 78.43% of its industry peers.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
NKE has a Quick ratio of 1.45. This is in the better half of the industry: NKE outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased strongly by -47.85% in the last year.
The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
The Revenue has decreased by -5.03% in the past year.
The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
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-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y16.96%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
Revenue Next 5Y4.85%
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 33.61, NKE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
NKE is valuated rather expensively when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
NKE is valuated rather expensively with a Price/Forward Earnings ratio of 23.47.
Based on the Price/Forward Earnings ratio, NKE is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.01. NKE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 72.55% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, NKE is valued a bit more expensive than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.12 | ||
| EV/EBITDA | 19.76 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.97
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, NKE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.08, NKE pays a bit more dividend than its industry peers.
NKE's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
Dividend Growth(5Y)10.7%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
80.59% of the earnings are spent on dividend by NKE. This is not a sustainable payout ratio.
NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.59%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
FRA:NKE (12/23/2025, 5:29:44 PM)
48.73
-0.26 (-0.53%)
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 Cap72.03B
Revenue(TTM)46.51B
Net Income(TTM)2.90B
Analysts75.45
Price Target69.04 (41.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend1.32
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)-5.72%
PT rev (3m)2.7%
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)-23.9%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 23.47 | ||
| P/S | 1.82 | ||
| P/FCF | 28.12 | ||
| P/OCF | 23.99 | ||
| P/B | 6.28 | ||
| P/tB | 6.52 | ||
| EV/EBITDA | 19.76 |
EPS(TTM)1.45
EY2.98%
EPS(NY)2.08
Fwd EY4.26%
FCF(TTM)1.73
FCFY3.56%
OCF(TTM)2.03
OCFY4.17%
SpS26.75
BVpS7.76
TBVpS7.47
PEG (NY)N/A
PEG (5Y)9.97
Graham Number15.91
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 | 1.91 | ||
| Cap/Depr | 66.54% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.01% | ||
| Profit Quality | 103.94% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 4.08 |
F-Score4
WACC11.2%
ROIC/WACC0.97
Cap/Depr(3y)88.17%
Cap/Depr(5y)88.39%
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)-47.85%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-32.05%
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-5.03%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.59%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
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 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 -24.92% in the next year.
Can you provide the dividend sustainability for NKE stock?
The dividend rating of NIKE INC -CL B (NKE.DE) is 6 / 10 and the dividend payout ratio is 80.59%.