NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
63.63 USD
-0.75 (-1.16%)
63.5145 USD
-0.12 (-0.18%)
We assign a fundamental rating of 5 out of 10 to NKE. NKE was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE has an excellent profitability rating, but there are some minor concerns on its financial health. NKE is quite expensive at the moment. It does show a decent growth rate. NKE also has an excellent dividend rating. With these ratings, NKE could be worth investigating further 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.
- Each year in the past 5 years NKE has been profitable.
- NKE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NKE's Return On Assets of 6.68% 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 17.92%, NKE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- NKE has a Return On Invested Capital of 9.77%. This is in the better half of the industry: NKE outperforms 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 11.59%.
- The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(9.77%). The reason for the recent decline needs to be investigated.
| 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.
- Looking at the Operating Margin, with a value of 6.54%, NKE is in line with its industry, outperforming 57.78% of the companies in the same industry.
- NKE's Operating Margin has been stable in the last couple of years.
- The Gross Margin of NKE (41.13%) is worse than 62.22% of its industry peers.
- NKE's Gross Margin has been stable in the last couple of years.
| 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.
- NKE has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NKE has been reduced compared to a year ago.
2.2 Solvency
- NKE has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as NKE would need 3.24 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.24, NKE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that NKE is not too dependend on debt financing.
- NKE's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. NKE is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC11.39%
2.3 Liquidity
- A Current Ratio of 2.06 indicates that NKE has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.06, NKE is in line with its industry, outperforming 57.78% of the companies in the same industry.
- A Quick Ratio of 1.40 indicates that NKE should not have too much problems paying its short term obligations.
- The Quick ratio of NKE (1.40) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- The earnings per share for NKE have decreased strongly by -47.85% 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 -5.03% in the last year.
- The Revenue has been growing slightly by 4.36% on average over the past years.
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
- The Earnings Per Share is expected to grow by 14.53% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y-24.92%
EPS Next 2Y6.25%
EPS Next 3Y11.18%
EPS Next 5Y14.53%
Revenue Next Year1.63%
Revenue Next 2Y2.72%
Revenue Next 3Y3.23%
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
- The Price/Earnings ratio is 37.43, which means the current valuation is very expensive for NKE.
- Compared to the rest of the industry, the Price/Earnings ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 60.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, NKE is valued a bit more expensive.
- The Price/Forward Earnings ratio is 26.10, which means the current valuation is very expensive for NKE.
- Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. NKE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 26.1 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as NKE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38 | ||
| EV/EBITDA | 24.54 |
4.3 Compensation for Growth
- The decent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.1
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.54%, NKE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.43, NKE pays a better dividend. On top of this NKE pays more dividend than 84.44% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, NKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
- 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%
63.63
-0.75 (-1.16%)
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-0.17%
Ins Owners0.69%
Ins Owner Change4.37%
Market Cap94.06B
Revenue(TTM)46.51B
Net Income(TTM)2.52B
Analysts76.28
Price Target78.15 (22.82%)
Short Float %3.51%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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)-8.07%
PT rev (3m)-4.84%
EPS NQ rev (1m)-38.33%
EPS NQ rev (3m)-37.34%
EPS NY rev (1m)-3.58%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.43 | ||
| Fwd PE | 26.1 | ||
| P/S | 2.02 | ||
| P/FCF | 38 | ||
| P/OCF | 30.78 | ||
| P/B | 6.68 | ||
| P/tB | 6.92 | ||
| EV/EBITDA | 24.54 |
EPS(TTM)1.7
EY2.67%
EPS(NY)2.44
Fwd EY3.83%
FCF(TTM)1.67
FCFY2.63%
OCF(TTM)2.07
OCFY3.25%
SpS31.47
BVpS9.53
TBVpS9.19
PEG (NY)N/A
PEG (5Y)11.1
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
WACC11.39%
ROIC/WACC0.86
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 Year1.63%
Revenue Next 2Y2.72%
Revenue Next 3Y3.23%
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 1 / 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%.