NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
65.085 USD
-0.61 (-0.92%)
Overall NKE gets a fundamental rating of 6 out of 10. We evaluated NKE against 46 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NKE is quite expensive at the moment. It does show a decent growth rate. NKE also has an excellent dividend rating. These ratings could make NKE a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
NKE had a positive operating cash flow in the past year.
In the past 5 years NKE has always been profitable.
NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.75%, NKE belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
NKE has a Return On Equity of 21.50%. This is in the better half of the industry: NKE outperforms 76.09% of its industry peers.
NKE has a better Return On Invested Capital (10.87%) than 73.91% of 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 11.99%.
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
NKE's Profit Margin of 6.23% is amongst the best of the industry. NKE outperforms 80.43% of its industry peers.
NKE's Profit Margin has been stable in the last couple of years.
The Operating Margin of NKE (7.36%) is better than 60.87% 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 60.87% 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.
Compared to 1 year ago, NKE has less shares outstanding
Compared to 5 years ago, NKE has less shares outstanding
Compared to 1 year ago, NKE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.38 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE's Altman-Z score of 4.38 is amongst the best of the industry. NKE outperforms 82.61% of its industry peers.
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.
NKE's Debt to FCF ratio of 2.66 is fine compared to the rest of the industry. NKE outperforms 69.57% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that NKE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, NKE is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.99
WACC10.94%
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 60.87% 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's Quick ratio of 1.45 is amongst the best of the industry. NKE outperforms 80.43% of its industry peers.
| 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 -44.44%.
NKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.37% yearly.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
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)-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
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.
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
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
Based on the Price/Earnings ratio of 33.38, the valuation of NKE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NKE to the average of the S&P500 Index (26.41), we can say NKE is valued slightly more expensively.
A Price/Forward Earnings ratio of 25.73 indicates a quite expensive valuation of NKE.
Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 65.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. NKE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than 73.91% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NKE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.97 | ||
| EV/EBITDA | 22.45 |
4.3 Compensation for Growth
NKE has a very decent profitability rating, which 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)9.9
EPS Next 2Y8.21%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.55%. 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 3.25. NKE pays more dividend than 84.78% of the companies in the same industry.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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%!
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
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 2Y8.21%
EPS Next 3Y12.87%
NYSE:NKE (12/5/2025, 9:46:10 AM)
65.085
-0.61 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners84.27%
Inst Owner Change-2.2%
Ins Owners0.67%
Ins Owner Change1.42%
Market Cap96.21B
Revenue(TTM)46.44B
Net Income(TTM)2.90B
Analysts75
Price Target85.08 (30.72%)
Short Float %3.28%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)3.6%
PT rev (3m)7.23%
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 | 33.38 | ||
| Fwd PE | 25.73 | ||
| P/S | 2.07 | ||
| P/FCF | 31.97 | ||
| P/OCF | 27.29 | ||
| P/B | 7.14 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 22.45 |
EPS(TTM)1.95
EY3%
EPS(NY)2.53
Fwd EY3.89%
FCF(TTM)2.04
FCFY3.13%
OCF(TTM)2.39
OCFY3.66%
SpS31.42
BVpS9.11
TBVpS8.77
PEG (NY)N/A
PEG (5Y)9.9
Graham Number19.99
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 | 4.38 |
F-Score4
WACC10.94%
ROIC/WACC0.99
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 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 -22.25% 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%.