NIKE INC -CL B (NKE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NKE - US6541061031 - Common Stock
64.38 USD
-0.21 (-0.33%)
64.353 USD
-0.03 (-0.04%)
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. NKE is valied quite expensively at the moment, while 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.
- NKE had positive earnings in each of the past 5 years.
- In the past 5 years NKE always reported a positive cash flow from operatings.
1.2 Ratios
- NKE has a Return On Assets of 6.68%. This is in the better half of the industry: NKE outperforms 77.78% of its industry peers.
- The Return On Equity of NKE (17.92%) is better than 77.78% of its industry peers.
- NKE has a better Return On Invested Capital (9.77%) 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 11.59%.
- 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.
- NKE has a Operating Margin (6.54%) which is in line with 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.
- 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.
- NKE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for NKE has been reduced compared to 5 years ago.
- The debt/assets ratio for NKE has been reduced compared to a year ago.
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.
- NKE has a Debt to FCF ratio of 3.24. This is in the better half of the industry: NKE outperforms 66.67% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that NKE is not too dependend on debt financing.
- The Debt to Equity ratio of NKE (0.50) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC11.26%
2.3 Liquidity
- A Current Ratio of 2.06 indicates that NKE has no problem at all paying its short term obligations.
- NKE has a Current ratio (2.06) which is comparable to the rest of the industry.
- A Quick Ratio of 1.40 indicates that NKE should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.40, NKE is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
| 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%.
- 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.
- 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
- 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
- A Price/Earnings ratio of 37.87 indicates a quite expensive valuation of NKE.
- NKE's Price/Earnings ratio is in line with the industry average.
- NKE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.47.
- The Price/Forward Earnings ratio is 26.40, 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 24.26. NKE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 26.4 |
4.2 Price Multiples
- NKE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NKE is more expensive than 73.33% of the companies in the same industry.
- NKE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.45 | ||
| EV/EBITDA | 24.63 |
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)11.23
EPS Next 2Y6.25%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
- NKE has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.46, 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 1.89, NKE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 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%
64.38
-0.21 (-0.33%)
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 Cap95.17B
Revenue(TTM)46.51B
Net Income(TTM)2.52B
Analysts76.28
Price Target80.28 (24.7%)
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 | 37.87 | ||
| Fwd PE | 26.4 | ||
| P/S | 2.05 | ||
| P/FCF | 38.45 | ||
| P/OCF | 31.14 | ||
| P/B | 6.76 | ||
| P/tB | 7 | ||
| EV/EBITDA | 24.63 |
EPS(TTM)1.7
EY2.64%
EPS(NY)2.44
Fwd EY3.79%
FCF(TTM)1.67
FCFY2.6%
OCF(TTM)2.07
OCFY3.21%
SpS31.47
BVpS9.53
TBVpS9.19
PEG (NY)N/A
PEG (5Y)11.23
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
WACC11.26%
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%.