NIKE INC -CL B (NKE) Fundamental Analysis & Valuation

NYSE:NKE • US6541061031

Current stock price

42.69 USD
-1.34 (-3.04%)
At close:
43.72 USD
+1.03 (+2.41%)
Pre-Market:

This NKE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NKE Profitability Analysis

1.1 Basic Checks

  • In the past year NKE was profitable.
  • In the past year NKE had a positive cash flow from operations.
  • Each year in the past 5 years NKE has been profitable.
  • In the past 5 years NKE always reported a positive cash flow from operatings.
NKE Yearly Net Income VS EBIT VS OCF VS FCFNKE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • NKE's Return On Assets of 6.07% is fine compared to the rest of the industry. NKE outperforms 77.78% of its industry peers.
  • With a decent Return On Equity value of 15.97%, NKE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
  • The Return On Invested Capital of NKE (8.99%) is better than 73.33% of its industry peers.
  • NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 11.51%.
  • The last Return On Invested Capital (8.99%) 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 RankSector Rank
ROA 6.07%
ROE 15.97%
ROIC 8.99%
ROA(3y)12.42%
ROA(5y)13.49%
ROE(3y)33.36%
ROE(5y)36.9%
ROIC(3y)16.64%
ROIC(5y)18.07%
NKE Yearly ROA, ROE, ROICNKE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.84%, NKE is in the better half of the industry, outperforming 66.67% 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.
  • Looking at the Operating Margin, with a value of 6.03%, NKE is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • 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 40.81%, NKE is doing worse than 68.89% 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 RankSector Rank
OM 6.03%
PM (TTM) 4.84%
GM 40.81%
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%
NKE Yearly Profit, Operating, Gross MarginsNKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. NKE Health Analysis

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
  • NKE has less shares outstanding than it did 5 years ago.
  • NKE has a better debt/assets ratio than last year.
NKE Yearly Shares OutstandingNKE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
NKE Yearly Total Debt VS Total AssetsNKE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • NKE has an Altman-Z score of 3.53. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
  • NKE has a better Altman-Z score (3.53) than 73.33% of its industry peers.
  • NKE has a debt to FCF ratio of 7.66. This is a slightly negative value and a sign of low solvency as NKE would need 7.66 years to pay back of all of its debts.
  • The Debt to FCF ratio of NKE (7.66) is comparable to the rest of the industry.
  • NKE has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.50, NKE is doing worse than 62.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 7.66
Altman-Z 3.53
ROIC/WACC0.87
WACC10.33%
NKE Yearly LT Debt VS Equity VS FCFNKE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 2.14 indicates that NKE has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.14, NKE is doing good in the industry, outperforming 62.22% 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 Quick ratio of 1.45. This is in the better half of the industry: NKE outperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 2.14
Quick Ratio 1.45
NKE Yearly Current Assets VS Current LiabilitesNKE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NKE Growth Analysis

3.1 Past

  • The earnings per share for NKE have decreased strongly by -50.17% in the last year.
  • The Earnings Per Share has been growing slightly by 3.37% on average over the past years.
  • Looking at the last year, NKE shows a decrease in Revenue. The Revenue has decreased by -2.71% in the last year.
  • The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-50.17%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-35.19%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.09%

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 18.37% on average per year.
  • NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.12% yearly.
EPS Next Y-29.84%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
EPS Next 5Y18.37%
Revenue Next Year1.01%
Revenue Next 2Y1.34%
Revenue Next 3Y2.4%
Revenue Next 5Y4.12%

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.
NKE Yearly Revenue VS EstimatesNKE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
NKE Yearly EPS VS EstimatesNKE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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1

4. NKE Valuation Analysis

4.1 Price/Earnings Ratio

  • NKE is valuated quite expensively with a Price/Earnings ratio of 28.27.
  • Based on the Price/Earnings ratio, NKE is valued a bit more expensive than 62.22% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.21. NKE is around the same levels.
  • NKE is valuated rather expensively with a Price/Forward Earnings ratio of 23.03.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 62.22% of the companies listed in the same industry.
  • NKE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 28.27
Fwd PE 23.03
NKE Price Earnings VS Forward Price EarningsNKE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 64.44% of the companies in the same industry are cheaper than NKE, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, NKE is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 60.32
EV/EBITDA 17.53
NKE Per share dataNKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.39
EPS Next 2Y-7.37%
EPS Next 3Y3.61%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. NKE Dividend Analysis

5.1 Amount

  • NKE has a Yearly Dividend Yield of 3.84%.
  • The stock price of NKE dropped by -35.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • NKE's Dividend Yield is rather good when compared to the industry average which is at 1.55. NKE pays more dividend than 88.89% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, NKE pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.84%

5.2 History

  • On average, the dividend of NKE grows each year by 10.70%, which is quite nice.
  • NKE has been paying a dividend for at least 10 years, so it has a reliable track record.
  • NKE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.7%
Div Incr Years24
Div Non Decr Years34
NKE Yearly Dividends per shareNKE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 106.18% 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.
DP106.18%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
NKE Yearly Income VS Free CF VS DividendNKE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
NKE Dividend Payout.NKE Dividend Payout, showing the Payout Ratio.NKE Dividend Payout.PayoutRetained Earnings

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NKE Fundamentals: All Metrics, Ratios and Statistics

NIKE INC -CL B

NYSE:NKE (4/7/2026, 8:55:24 PM)

Premarket: 43.72 +1.03 (+2.41%)

42.69

-1.34 (-3.04%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)03-31
Earnings (Next)06-24
Inst Owners83.12%
Inst Owner Change0%
Ins Owners0.68%
Ins Owner Change2.91%
Market Cap63.22B
Revenue(TTM)46.52B
Net Income(TTM)2.25B
Analysts76.74
Price Target77.07 (80.53%)
Short Float %3.64%
Short Ratio2.81
Dividend
Industry RankSector Rank
Dividend Yield 3.84%
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP106.18%
Div Incr Years24
Div Non Decr Years34
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.05%
Min EPS beat(2)22.88%
Max EPS beat(2)39.21%
EPS beat(4)4
Avg EPS beat(4)36.9%
Min EPS beat(4)7.49%
Max EPS beat(4)78.04%
EPS beat(8)8
Avg EPS beat(8)38.29%
EPS beat(12)11
Avg EPS beat(12)29.41%
EPS beat(16)15
Avg EPS beat(16)27.32%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.69%
Revenue beat(4)3
Avg Revenue beat(4)2.01%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)11
Avg Revenue beat(16)1.19%
PT rev (1m)-0.68%
PT rev (3m)-3.99%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-4.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.74%
Valuation
Industry RankSector Rank
PE 28.27
Fwd PE 23.03
P/S 1.36
P/FCF 60.32
P/OCF 37.32
P/B 4.49
P/tB 4.65
EV/EBITDA 17.53
EPS(TTM)1.51
EY3.54%
EPS(NY)1.85
Fwd EY4.34%
FCF(TTM)0.71
FCFY1.66%
OCF(TTM)1.14
OCFY2.68%
SpS31.42
BVpS9.51
TBVpS9.18
PEG (NY)N/A
PEG (5Y)8.39
Graham Number17.98
Profitability
Industry RankSector Rank
ROA 6.07%
ROE 15.97%
ROCE 10.7%
ROIC 8.99%
ROICexc 12.97%
ROICexgc 13.34%
OM 6.03%
PM (TTM) 4.84%
GM 40.81%
FCFM 2.25%
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-Score3
Asset Turnover1.26
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 7.66
Debt/EBITDA 1.99
Cap/Depr 89.97%
Cap/Sales 1.39%
Interest Coverage 250
Cash Conversion 48.06%
Profit Quality 46.58%
Current Ratio 2.14
Quick Ratio 1.45
Altman-Z 3.53
F-Score3
WACC10.33%
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)-50.17%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-35.19%
EPS Next Y-29.84%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
EPS Next 5Y18.37%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.09%
Revenue Next Year1.01%
Revenue Next 2Y1.34%
Revenue Next 3Y2.4%
Revenue Next 5Y4.12%
EBIT growth 1Y-47.1%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year-2.98%
EBIT Next 3Y10.9%
EBIT Next 5Y16.88%
FCF growth 1Y-83.08%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-76.02%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%

NIKE INC -CL B / NKE Fundamental Analysis FAQ

What is the fundamental rating for NKE stock?

ChartMill assigns a fundamental rating of 5 / 10 to NKE.


What is the valuation status of NIKE INC -CL B (NKE) stock?

ChartMill assigns a valuation rating of 1 / 10 to NIKE INC -CL B (NKE). This can be considered as Overvalued.


Can you provide the profitability details for NIKE INC -CL B?

NIKE INC -CL B (NKE) has a profitability rating of 7 / 10.


Can you provide the financial health for NKE stock?

The financial health rating of NIKE INC -CL B (NKE) is 6 / 10.


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 106.18%.