NIKE INC -CL B (NKE)
US6541061031 - Common Stock
Overall NKE gets a fundamental rating of 6 out of 10. We evaluated NKE against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. NKE gets an excellent profitability rating and is at the same time showing great financial health properties. NKE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
NKE had positive earnings in the past year.
In the past year NKE had a positive cash flow from operations.
In the past 5 years NKE has always been profitable.
Each year in the past 5 years NKE had a positive operating cash flow.
1.2 Ratios
NKE's Return On Assets of 14.00% is amongst the best of the industry. NKE outperforms 90.00% of its industry peers.
Looking at the Return On Equity, with a value of 38.02%, NKE belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.27%, NKE belongs to the top 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 11.70%.
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
With an excellent Profit Margin value of 10.60%, NKE belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
NKE's Profit Margin has improved in the last couple of years.
NKE has a better Operating Margin (12.59%) than 84.00% of its industry peers.
In the last couple of years the Operating Margin of NKE has remained more or less at the same level.
The Gross Margin of NKE (44.84%) 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NKE is creating 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.
2.2 Solvency
An Altman-Z score of 5.22 indicates that NKE is not in any danger for bankruptcy at the moment.
NKE has a better Altman-Z score (5.22) than 86.00% 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.
With an excellent Debt to FCF ratio value of 1.25, NKE belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that NKE is somewhat dependend on debt financing.
The Debt to Equity ratio of NKE (0.57) is worse 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 | 5.22 |
ROIC/WACC2.19
WACC8.8%
2.3 Liquidity
NKE has a Current Ratio of 2.36. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
NKE has a Current ratio (2.36) which 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.
Looking at the Quick ratio, with a value of 1.58, NKE is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for NKE have decreased by -4.68% in the last 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.
The Revenue has been growing slightly by 0.28% in the past year.
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)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
Revenue 1Y (TTM)0.28%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
3.2 Future
NKE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.85% yearly.
Based on estimates for the next years, NKE will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y-26.53%
EPS Next 2Y-7.9%
EPS Next 3Y-0.96%
EPS Next 5Y4.85%
Revenue Next Year-8.26%
Revenue Next 2Y-2.25%
Revenue Next 3Y0.51%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.60, NKE is valued on the expensive side.
NKE's Price/Earnings is on the same level as the industry average.
NKE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
NKE is valuated rather expensively with a Price/Forward Earnings ratio of 24.19.
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 22.83, NKE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 24.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NKE.
NKE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 15.65 |
4.3 Compensation for Growth
The excellent profitability rating of NKE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.77
EPS Next 2Y-7.9%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
NKE has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
NKE's Dividend Yield is a higher than the industry average which is at 2.86.
Compared to an average S&P500 Dividend Yield of 2.34, NKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of NKE is nicely growing with an annual growth rate of 11.20%!
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)11.2%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
NKE pays out 41.56% of its income as dividend. 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-7.9%
EPS Next 3Y-0.96%
NIKE INC -CL B
NYSE:NKE (12/20/2024, 8:04:00 PM)
After market: 76.754 -0.19 (-0.24%)76.94
-0.16 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners83.67%
Inst Owner Change-2.52%
Ins Owners0.67%
Ins Owner Change18.2%
Market Cap114.53B
Analysts73.91
Price Target93.11 (21.02%)
Short Float %2.16%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Dividend Growth(5Y)11.2%
DP41.56%
Div Incr Years23
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.63%
Min EPS beat(2)19.98%
Max EPS beat(2)33.27%
EPS beat(4)4
Avg EPS beat(4)19.36%
Min EPS beat(4)3.59%
Max EPS beat(4)33.27%
EPS beat(8)7
Avg EPS beat(8)21.67%
EPS beat(12)11
Avg EPS beat(12)19.64%
EPS beat(16)15
Avg EPS beat(16)22.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)-1.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)0.2%
Revenue beat(8)4
Avg Revenue beat(8)0.76%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)1.06%
PT rev (1m)-0.68%
PT rev (3m)-0.53%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-36.46%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-10.31%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 24.19 | ||
| P/S | 2.29 | ||
| P/FCF | 15.88 | ||
| P/OCF | 14.52 | ||
| P/B | 8.21 | ||
| P/tB | 8.52 | ||
| EV/EBITDA | 15.65 |
EPS(TTM)3.26
EY4.24%
EPS(NY)3.18
Fwd EY4.13%
FCF(TTM)4.84
FCFY6.3%
OCF(TTM)5.3
OCFY6.89%
SpS33.6
BVpS9.37
TBVpS9.03
PEG (NY)N/A
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14% | ||
| ROE | 38.02% | ||
| ROCE | 23.11% | ||
| ROIC | 19.27% | ||
| ROICexc | 30.97% | ||
| ROICexgc | 31.91% | ||
| OM | 12.59% | ||
| PM (TTM) | 10.6% | ||
| GM | 44.84% | ||
| FCFM | 14.42% |
ROA(3y)14.49%
ROA(5y)13.35%
ROE(3y)38.42%
ROE(5y)38.33%
ROIC(3y)18.84%
ROIC(5y)17.81%
ROICexc(3y)32.19%
ROICexc(5y)31.11%
ROICexgc(3y)33.27%
ROICexgc(5y)32.18%
ROCE(3y)22.6%
ROCE(5y)21.38%
ROICexcg growth 3Y-5.31%
ROICexcg growth 5Y-0.47%
ROICexc growth 3Y-5.19%
ROICexc growth 5Y-0.31%
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%
F-Score7
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 80.74% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.55% | ||
| Profit Quality | 136.01% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 5.22 |
F-Score7
WACC8.8%
ROIC/WACC2.19
Cap/Depr(3y)99.75%
Cap/Depr(5y)107.42%
Cap/Sales(3y)1.7%
Cap/Sales(5y)1.91%
Profit Quality(3y)95.15%
Profit Quality(5y)88.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.68%
EPS 3Y1.75%
EPS 5Y8.53%
EPS Q2Q%-24.27%
EPS Next Y-26.53%
EPS Next 2Y-7.9%
EPS Next 3Y-0.96%
EPS Next 5Y4.85%
Revenue 1Y (TTM)0.28%
Revenue growth 3Y4.87%
Revenue growth 5Y5.6%
Sales Q2Q%-7.72%
Revenue Next Year-8.26%
Revenue Next 2Y-2.25%
Revenue Next 3Y0.51%
Revenue Next 5Y2.67%
EBIT growth 1Y8.09%
EBIT growth 3Y-2.36%
EBIT growth 5Y6.99%
EBIT Next Year-14.9%
EBIT Next 3Y2.6%
EBIT Next 5Y5.81%
FCF growth 1Y100.5%
FCF growth 3Y3.54%
FCF growth 5Y6.7%
OCF growth 1Y77.92%
OCF growth 3Y3.73%
OCF growth 5Y4.71%