NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
66.82 USD
+0.52 (+0.78%)
Taking everything into account, NKE scores 5 out of 10 in our fundamental rating. NKE was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. While NKE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, NKE is valued expensive at the moment. Finally NKE also has an excellent dividend rating. These ratings would make NKE suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year NKE was profitable.
- In the past year NKE had a positive cash flow from operations.
- In the past 5 years NKE has always been profitable.
- Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of NKE (6.68%) is better than 77.78% of its industry peers.
- Looking at the Return On Equity, with a value of 17.92%, NKE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.77%, NKE is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 11.59%.
- The last Return On Invested Capital (9.77%) 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 | 6.68% | ||
| ROE | 17.92% | ||
| ROIC | 9.77% |
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
- NKE has a Profit Margin of 5.43%. This is in the better half of the industry: NKE outperforms 80.00% of its industry peers.
- NKE's Profit Margin has been stable in the last couple of years.
- NKE's Operating Margin of 6.54% is in line compared to the rest of the industry. NKE outperforms 57.78% of its industry peers.
- NKE's Operating Margin has been stable in the last couple of years.
- NKE has a Gross Margin of 41.13%. This is in the lower half of the industry: NKE underperforms 62.22% of its industry peers.
- 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 | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% |
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
- NKE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for NKE has been reduced compared to 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
- The Debt to FCF ratio of NKE is 3.24, which is a good value as it means it would take NKE, 3.24 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of NKE (3.24) is better than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that NKE is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.50, NKE is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC11.29%
2.3 Liquidity
- NKE has a Current Ratio of 2.06. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
- NKE has a Current ratio of 2.06. This is comparable to the rest of the industry: NKE outperforms 57.78% of its industry peers.
- NKE has a Quick Ratio of 1.40. 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 (1.40) than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- NKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.85%.
- Measured over the past 5 years, NKE shows a small growth in Earnings Per Share. The EPS has been growing by 3.37% on average per year.
- Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -5.03% 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)-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 14.53% yearly.
- NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y14.53%
Revenue Next Year1.76%
Revenue Next 2Y3.17%
Revenue Next 3Y3.75%
Revenue Next 5Y5.09%
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
- A Price/Earnings ratio of 39.31 indicates a quite expensive valuation of NKE.
- NKE's Price/Earnings is on the same level as the industry average.
- NKE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 27.40 indicates a quite expensive valuation of NKE.
- Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
- NKE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 27.4 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.91 | ||
| EV/EBITDA | 25.29 |
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)11.66
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
- NKE has a Yearly Dividend Yield of 2.51%.
- NKE's Dividend Yield is rather good when compared to the industry average which is at 1.46. NKE pays more dividend than 84.44% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, NKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
- The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
- NKE has been paying a dividend for at least 10 years, so it has a reliable track record.
- NKE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.7%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
- 94.06% 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.
DP94.06%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
NYSE:NKE (1/14/2026, 9:59:09 AM)
66.82
+0.52 (+0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)12-18 2025-12-18/amc
Earnings (Next)03-18 2026-03-18/amc
Inst Owners83.45%
Inst Owner Change-0.2%
Ins Owners0.69%
Ins Owner Change4.37%
Market Cap98.77B
Revenue(TTM)46.51B
Net Income(TTM)2.52B
Analysts76.28
Price Target80.28 (20.14%)
Short Float %3.15%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP94.06%
Div Incr Years23
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.62%
Min EPS beat(2)39.21%
Max EPS beat(2)78.04%
EPS beat(4)4
Avg EPS beat(4)52.07%
Min EPS beat(4)7.49%
Max EPS beat(4)83.55%
EPS beat(8)8
Avg EPS beat(8)35.87%
EPS beat(12)11
Avg EPS beat(12)31.06%
EPS beat(16)15
Avg EPS beat(16)27.2%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)0.69%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)0.69%
Max Revenue beat(4)5.51%
Revenue beat(8)6
Avg Revenue beat(8)0.85%
Revenue beat(12)8
Avg Revenue beat(12)1%
Revenue beat(16)12
Avg Revenue beat(16)1.33%
PT rev (1m)-5.57%
PT rev (3m)-2.25%
EPS NQ rev (1m)-36.38%
EPS NQ rev (3m)-40.95%
EPS NY rev (1m)-3.58%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 27.4 | ||
| P/S | 2.12 | ||
| P/FCF | 39.91 | ||
| P/OCF | 32.32 | ||
| P/B | 7.01 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 25.29 |
EPS(TTM)1.7
EY2.54%
EPS(NY)2.44
Fwd EY3.65%
FCF(TTM)1.67
FCFY2.51%
OCF(TTM)2.07
OCFY3.09%
SpS31.47
BVpS9.53
TBVpS9.19
PEG (NY)N/A
PEG (5Y)11.66
Graham Number19.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 17.92% | ||
| ROCE | 11.63% | ||
| ROIC | 9.77% | ||
| ROICexc | 14.35% | ||
| ROICexgc | 14.76% | ||
| OM | 6.54% | ||
| PM (TTM) | 5.43% | ||
| GM | 41.13% | ||
| FCFM | 5.32% |
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-Score5
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 75.85% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.25% | ||
| Profit Quality | 98.06% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | N/A |
F-Score5
WACC11.29%
ROIC/WACC0.87
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 5Y14.53%
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 5Y5.09%
EBIT growth 1Y-48.04%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year1.76%
EBIT Next 3Y17.24%
EBIT Next 5Y20.93%
FCF growth 1Y-60.76%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-57.75%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%
NIKE INC -CL B / NKE FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 5 / 10 to NKE.
Can you provide the valuation status for NIKE INC -CL B?
ChartMill assigns a valuation rating of 2 / 10 to NIKE INC -CL B (NKE). This can be considered as Overvalued.
How profitable is NIKE INC -CL B (NKE) stock?
NIKE INC -CL B (NKE) has a profitability rating of 7 / 10.
What is the expected EPS growth for NIKE INC -CL B (NKE) stock?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE) is expected to decline by -24.92% in the next year.
How sustainable is the dividend of NIKE INC -CL B (NKE) stock?
The dividend rating of NIKE INC -CL B (NKE) is 7 / 10 and the dividend payout ratio is 94.06%.