NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
58.71 USD
-6.92 (-10.54%)
59.1 USD
+0.39 (+0.66%)
Taking everything into account, NKE scores 6 out of 10 in our fundamental rating. NKE was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE gets an excellent profitability rating and is at the same time showing great financial health properties. NKE is quite expensive at the moment. It does show a decent growth rate. Finally NKE also has an excellent dividend rating. These ratings would make NKE suitable for dividend investing!
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
NKE had a positive operating cash flow in the past year.
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 (7.75%) is better than 86.67% of its industry peers.
With a decent Return On Equity value of 21.50%, NKE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NKE has a better Return On Invested Capital (10.87%) than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NKE is above the industry average of 11.73%.
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
With an excellent Profit Margin value of 6.23%, NKE belongs to the best of the industry, outperforming 82.22% 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 better than 62.22% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.94%, NKE is doing worse than 62.22% of the companies in the same industry.
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.
The number of shares outstanding for NKE has been reduced compared to 1 year ago.
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 4.12. 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 4.12, NKE is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
The Debt to FCF ratio of NKE is 2.66, which is a good value as it means it would take NKE, 2.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.66, NKE is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
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 on the low side compared to the rest of the industry. NKE is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.12 |
ROIC/WACC0.97
WACC11.22%
2.3 Liquidity
NKE has a Current Ratio of 2.19. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NKE (2.19) is better than 62.22% of its industry peers.
A Quick Ratio of 1.45 indicates that NKE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, NKE is doing good in the industry, outperforming 75.56% of the companies in the same industry.
| 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 -47.85%.
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.
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)-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
Based on estimates for the next years, NKE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.96% on average per year.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 34.54, which means the current valuation is very expensive for NKE.
The rest of the industry has a similar Price/Earnings ratio as NKE.
The average S&P500 Price/Earnings ratio is at 26.39. NKE is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 24.08 indicates a rather expensive valuation of NKE.
Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 64.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NKE to the average of the S&P500 Index (23.84), we can say NKE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.54 | ||
| Fwd PE | 24.08 |
4.2 Price Multiples
71.11% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
NKE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.84 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.24
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
NKE's Dividend Yield is rather good when compared to the industry average which is at 1.50. NKE pays more dividend than 84.44% of the companies in the same industry.
NKE's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 10.70%!
NKE has paid a dividend for at least 10 years, which is 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
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 2Y6.25%
EPS Next 3Y11.18%
58.71
-6.92 (-10.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner Change-2.18%
Ins Owners0.66%
Ins Owner Change3.78%
Market Cap86.79B
Revenue(TTM)46.51B
Net Income(TTM)2.90B
Analysts75.45
Price Target80.28 (36.74%)
Short Float %3.55%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP80.59%
Div Incr Years23
Div Non Decr Years34
Ex-Date
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)-0.06%
PT rev (3m)5.09%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)-23.74%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.54 | ||
| Fwd PE | 24.08 | ||
| P/S | 1.87 | ||
| P/FCF | 28.84 | ||
| P/OCF | 24.61 | ||
| P/B | 6.44 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)1.7
EY2.9%
EPS(NY)2.44
Fwd EY4.15%
FCF(TTM)2.04
FCFY3.47%
OCF(TTM)2.39
OCFY4.06%
SpS31.42
BVpS9.11
TBVpS8.77
PEG (NY)N/A
PEG (5Y)10.24
Graham Number18.67
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 | 4.12 |
F-Score4
WACC11.22%
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 FAQ
What is the fundamental rating for NKE stock?
ChartMill assigns a fundamental rating of 6 / 10 to NKE.
What is the valuation status for NKE stock?
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 earnings growth outlook for NIKE INC -CL B?
The Earnings per Share (EPS) of NIKE INC -CL B (NKE) 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) is 7 / 10 and the dividend payout ratio is 80.59%.