NIKE INC -CL B (NKE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NKE - US6541061031 - Common Stock
55.78 EUR
+0.18 (+0.32%)
Overall NKE gets a fundamental rating of 5 out of 10. We evaluated NKE against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE has an excellent financial health rating, but there are some minor concerns on its profitability. 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
Looking at the Return On Assets, with a value of 7.75%, NKE is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
NKE's Return On Equity of 21.50% is fine compared to the rest of the industry. NKE outperforms 77.08% of its industry peers.
NKE has a Return On Invested Capital (10.87%) which is in line with its industry peers.
NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is above the industry average of 12.19%.
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
With a Profit Margin value of 6.23%, NKE perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
The Operating Margin of NKE (7.36%) is worse than 64.58% of its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 41.94%, NKE is not doing good in the industry: 89.58% 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.
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 4.33. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.33, NKE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 72.92% 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.
NKE's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. NKE outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.02
WACC10.69%
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 72.92% 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.
NKE has a better Quick ratio (1.45) than 72.92% 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 -44.44% in the last year.
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 -7.14% in the last year.
NKE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.36% yearly.
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
The Earnings Per Share is expected to grow by 16.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y-22.25%
EPS Next 2Y8.21%
EPS Next 3Y12.87%
EPS Next 5Y16.96%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.99%
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.
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 33.01, 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 26.31, NKE is valued a bit more expensive.
A Price/Forward Earnings ratio of 25.51 indicates a quite expensive valuation of NKE.
The rest of the industry has a similar Price/Forward Earnings ratio as NKE.
NKE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 25.51 |
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 a bit more expensive when compared to the industry. NKE is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.69 | ||
| EV/EBITDA | 22.04 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
NKE's earnings are expected to grow with 12.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)9.79
EPS Next 2Y8.21%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.55%.
Compared to an average industry Dividend Yield of 2.80, NKE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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
NKE pays out 80.59% of its income as dividend. 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 2Y8.21%
EPS Next 3Y12.87%
FRA:NKE (11/28/2025, 7:00:00 PM)
55.78
+0.18 (+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 Cap82.45B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75
Price Target73.54 (31.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend1.34
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)6.17%
PT rev (3m)6.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.01 | ||
| Fwd PE | 25.51 | ||
| P/S | 2.05 | ||
| P/FCF | 31.69 | ||
| P/OCF | 27.05 | ||
| P/B | 7.08 | ||
| P/tB | 7.35 | ||
| EV/EBITDA | 22.04 |
EPS(TTM)1.69
EY3.03%
EPS(NY)2.19
Fwd EY3.92%
FCF(TTM)1.76
FCFY3.16%
OCF(TTM)2.06
OCFY3.7%
SpS27.16
BVpS7.88
TBVpS7.59
PEG (NY)N/A
PEG (5Y)9.79
Graham Number17.31
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 | 4.33 |
F-Score4
WACC10.69%
ROIC/WACC1.02
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 3Y12.87%
EPS Next 5Y16.96%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%1.13%
Revenue Next Year1.74%
Revenue Next 2Y3.46%
Revenue Next 3Y3.99%
Revenue Next 5Y4.85%
EBIT growth 1Y-45.67%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y18.88%
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 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 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%.