NIKE INC -CL B (NKE)
US6541061031 - Common Stock
NKE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes NKE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year NKE was profitable.
In the past year NKE had a positive cash flow from operations.
NKE had positive earnings in each of the past 5 years.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
NKE has a better Return On Assets (14.00%) than 90.00% of its industry peers.
The Return On Equity of NKE (38.02%) is better than 92.00% of its industry peers.
With an excellent Return On Invested Capital value of 19.27%, NKE belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NKE is significantly above the industry average of 11.54%.
The 3 year average ROIC (18.84%) for NKE is below the current ROIC(19.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14% | ||
| ROE | 38.02% | ||
| ROIC | 19.27% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
1.3 Margins
NKE has a better Profit Margin (10.60%) than 90.00% of its industry peers.
In the last couple of years the Profit Margin of NKE has grown nicely.
NKE has a better Operating Margin (12.59%) than 84.00% of its industry peers.
NKE's Operating Margin has been stable in the last couple of years.
NKE has a Gross Margin (44.84%) which is comparable to the rest of the industry.
NKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 10.6% | ||
| GM | 44.84% |
OM growth 3Y-6.89%
OM growth 5Y1.32%
PM growth 3Y-4.79%
PM growth 5Y1.5%
GM growth 3Y-0.25%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
NKE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NKE has less shares outstanding
The number of shares outstanding for NKE has been reduced compared to 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 5.08. This indicates that NKE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NKE (5.08) is better than 84.00% of its industry peers.
NKE has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
NKE has a better Debt to FCF ratio (1.25) than 76.00% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
NKE has a worse Debt to Equity ratio (0.57) than 60.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for NKE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.08 |
ROIC/WACC2.24
WACC8.62%
2.3 Liquidity
A Current Ratio of 2.36 indicates that NKE has no problem at all paying its short term obligations.
The Current ratio of NKE (2.36) is comparable to the rest of the industry.
NKE has a Quick Ratio of 1.58. This is a normal value and indicates that NKE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NKE (1.58) is better than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
NKE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.53% yearly.
NKE shows a decrease in Revenue. In the last year, the revenue decreased by -2.83%.
Measured over the past years, NKE shows a small growth in Revenue. The Revenue has been growing by 5.60% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-25.53%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-10.43%
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 11.15% yearly.
NKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y-25.11%
EPS Next 2Y-6.65%
EPS Next 3Y-0.12%
EPS Next 5Y11.15%
Revenue Next Year-7.84%
Revenue Next 2Y-1.98%
Revenue Next 3Y0.73%
Revenue Next 5Y5.06%
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.
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 21.28 indicates a rather expensive valuation of NKE.
Compared to the rest of the industry, the Price/Earnings ratio of NKE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.65, NKE is valued a bit cheaper.
The Price/Forward Earnings ratio is 22.86, which indicates a rather expensive current valuation of NKE.
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 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, NKE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 22.86 |
4.2 Price Multiples
NKE's Enterprise Value to EBITDA is on the same level as the industry average.
NKE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
NKE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.49
EPS Next 2Y-6.65%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.92, NKE pays a bit more dividend than its industry peers.
NKE's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.20%!
NKE has paid a dividend for at least 10 years, which is 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)11.2%
Div Incr Years22
Div Non Decr Years33
5.3 Sustainability
41.56% of the earnings are spent on dividend by NKE. This is a bit on the high side, but may be sustainable.
NKE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.56%
EPS Next 2Y-6.65%
EPS Next 3Y-0.12%
NIKE INC -CL B
NYSE:NKE (11/21/2024, 12:02:10 PM)
74.71
+1.35 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap111.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.28 | ||
| Fwd PE | 22.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14% | ||
| ROE | 38.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.59% | ||
| PM (TTM) | 10.6% | ||
| GM | 44.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y1.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-25.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y4.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y