NIKE INC -CL B (NKE) Fundamental Analysis & Valuation

NYSE:NKE • US6541061031

Current stock price

46.39 USD
-0.09 (-0.19%)
At close:
46.35 USD
-0.04 (-0.09%)
After Hours:

This NKE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NKE Profitability Analysis

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.
  • NKE had a positive operating cash flow in each of the past 5 years.
NKE Yearly Net Income VS EBIT VS OCF VS FCFNKE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.07%, NKE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • NKE has a Return On Equity of 15.97%. This is in the better half of the industry: NKE outperforms 80.00% of its industry peers.
  • With a decent Return On Invested Capital value of 8.99%, NKE is doing good in the industry, outperforming 75.56% of the companies in the same industry.
  • NKE had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 9.53%.
  • The 3 year average ROIC (16.64%) for NKE is well above the current ROIC(8.99%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 6.07%
ROE 15.97%
ROIC 8.99%
ROA(3y)12.42%
ROA(5y)13.49%
ROE(3y)33.36%
ROE(5y)36.9%
ROIC(3y)16.64%
ROIC(5y)18.07%
NKE Yearly ROA, ROE, ROICNKE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • NKE's Profit Margin of 4.84% is fine compared to the rest of the industry. NKE outperforms 66.67% of its industry peers.
  • In the last couple of years the Profit Margin of NKE has remained more or less at the same level.
  • NKE's Operating Margin of 6.03% is in line compared to the rest of the industry. NKE outperforms 55.56% of its industry peers.
  • NKE's Operating Margin has been stable in the last couple of years.
  • NKE's Gross Margin of 40.81% is on the low side compared to the rest of the industry. NKE is outperformed by 68.89% of its industry peers.
  • NKE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.03%
PM (TTM) 4.84%
GM 40.81%
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%
NKE Yearly Profit, Operating, Gross MarginsNKE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. NKE Health Analysis

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.
  • Compared to 5 years ago, NKE has less shares outstanding
  • The debt/assets ratio for NKE has been reduced compared to a year ago.
NKE Yearly Shares OutstandingNKE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
NKE Yearly Total Debt VS Total AssetsNKE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 3.68 indicates that NKE is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.68, NKE is doing good in the industry, outperforming 71.11% of the companies in the same industry.
  • The Debt to FCF ratio of NKE is 7.66, which is on the high side as it means it would take NKE, 7.66 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of NKE (7.66) is comparable to the rest of the industry.
  • NKE has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
  • NKE has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: NKE underperforms 62.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 7.66
Altman-Z 3.68
ROIC/WACC0.83
WACC10.88%
NKE Yearly LT Debt VS Equity VS FCFNKE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • NKE has a Current Ratio of 2.14. This indicates that NKE is financially healthy and has no problem in meeting its short term obligations.
  • NKE's Current ratio of 2.14 is fine compared to the rest of the industry. NKE outperforms 62.22% of its industry peers.
  • NKE has a Quick Ratio of 1.45. 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 1.45, NKE is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.14
Quick Ratio 1.45
NKE Yearly Current Assets VS Current LiabilitesNKE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NKE Growth Analysis

3.1 Past

  • The earnings per share for NKE have decreased strongly by -50.17% in the last year.
  • Measured over the past 5 years, NKE shows a small growth in Earnings Per Share. The EPS has been growing by 3.37% on average per year.
  • The Revenue has decreased by -2.71% in the past year.
  • The Revenue has been growing slightly by 4.36% on average over the past years.
EPS 1Y (TTM)-50.17%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-35.19%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.09%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.37% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.12% on average over the next years.
EPS Next Y-29.84%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
EPS Next 5Y18.37%
Revenue Next Year0.77%
Revenue Next 2Y0.67%
Revenue Next 3Y1.97%
Revenue Next 5Y4.12%

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.
NKE Yearly Revenue VS EstimatesNKE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
NKE Yearly EPS VS EstimatesNKE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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1

4. NKE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.72, which means the current valuation is very expensive for NKE.
  • 64.44% of the companies in the same industry are cheaper than NKE, based on the Price/Earnings ratio.
  • NKE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • NKE is valuated quite expensively with a Price/Forward Earnings ratio of 25.03.
  • Based on the Price/Forward Earnings ratio, NKE is valued a bit more expensive than 60.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.68. NKE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 30.72
Fwd PE 25.03
NKE Price Earnings VS Forward Price EarningsNKE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NKE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NKE indicates a slightly more expensive valuation: NKE is more expensive than 62.22% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 65.55
EV/EBITDA 19.12
NKE Per share dataNKE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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)9.11
EPS Next 2Y-7.37%
EPS Next 3Y3.61%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. NKE Dividend Analysis

5.1 Amount

  • NKE has a Yearly Dividend Yield of 3.59%.
  • In the last 3 months the price of NKE has falen by -28.54%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • NKE's Dividend Yield is rather good when compared to the industry average which is at 1.41. NKE pays more dividend than 88.89% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, NKE pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.59%

5.2 History

  • On average, the dividend of NKE grows each year by 10.70%, which is quite nice.
  • 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 Years24
Div Non Decr Years34
NKE Yearly Dividends per shareNKE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • NKE pays out 106.18% of its income as dividend. This is not a sustainable payout ratio.
  • NKE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.18%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
NKE Yearly Income VS Free CF VS DividendNKE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
NKE Dividend Payout.NKE Dividend Payout, showing the Payout Ratio.NKE Dividend Payout.PayoutRetained Earnings

More info and screens

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NKE Fundamentals: All Metrics, Ratios and Statistics

NIKE INC -CL B

NYSE:NKE (4/21/2026, 4:06:21 PM)

After market: 46.35 -0.04 (-0.09%)

46.39

-0.09 (-0.19%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)03-31
Earnings (Next)06-24
Inst Owners82.83%
Inst Owner Change-0.1%
Ins Owners0.68%
Ins Owner Change3.46%
Market Cap68.70B
Revenue(TTM)46.52B
Net Income(TTM)2.25B
Analysts76.74
Price Target65.84 (41.93%)
Short Float %3.87%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 3.59%
Yearly Dividend1.54
Dividend Growth(5Y)10.7%
DP106.18%
Div Incr Years24
Div Non Decr Years34
Ex-Date03-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.05%
Min EPS beat(2)22.88%
Max EPS beat(2)39.21%
EPS beat(4)4
Avg EPS beat(4)36.9%
Min EPS beat(4)7.49%
Max EPS beat(4)78.04%
EPS beat(8)8
Avg EPS beat(8)38.29%
EPS beat(12)11
Avg EPS beat(12)29.41%
EPS beat(16)15
Avg EPS beat(16)27.32%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)0.69%
Revenue beat(4)3
Avg Revenue beat(4)2.01%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)11
Avg Revenue beat(16)1.19%
PT rev (1m)-15.15%
PT rev (3m)-15.75%
EPS NQ rev (1m)-44.01%
EPS NQ rev (3m)-44.01%
EPS NY rev (1m)-4.74%
EPS NY rev (3m)-6.55%
Revenue NQ rev (1m)-3.99%
Revenue NQ rev (3m)-3.96%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.85%
Valuation
Industry RankSector Rank
PE 30.72
Fwd PE 25.03
P/S 1.48
P/FCF 65.55
P/OCF 40.55
P/B 4.88
P/tB 5.05
EV/EBITDA 19.12
EPS(TTM)1.51
EY3.26%
EPS(NY)1.85
Fwd EY4%
FCF(TTM)0.71
FCFY1.53%
OCF(TTM)1.14
OCFY2.47%
SpS31.42
BVpS9.51
TBVpS9.18
PEG (NY)N/A
PEG (5Y)9.11
Graham Number17.9793 (-61.24%)
Profitability
Industry RankSector Rank
ROA 6.07%
ROE 15.97%
ROCE 10.7%
ROIC 8.99%
ROICexc 12.97%
ROICexgc 13.34%
OM 6.03%
PM (TTM) 4.84%
GM 40.81%
FCFM 2.25%
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-Score3
Asset Turnover1.26
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 7.66
Debt/EBITDA 1.99
Cap/Depr 89.97%
Cap/Sales 1.39%
Interest Coverage 250
Cash Conversion 48.06%
Profit Quality 46.58%
Current Ratio 2.14
Quick Ratio 1.45
Altman-Z 3.68
F-Score3
WACC10.88%
ROIC/WACC0.83
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)-50.17%
EPS 3Y-16.87%
EPS 5Y3.37%
EPS Q2Q%-35.19%
EPS Next Y-29.84%
EPS Next 2Y-7.37%
EPS Next 3Y3.61%
EPS Next 5Y18.37%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y-0.29%
Revenue growth 5Y4.36%
Sales Q2Q%0.09%
Revenue Next Year0.77%
Revenue Next 2Y0.67%
Revenue Next 3Y1.97%
Revenue Next 5Y4.12%
EBIT growth 1Y-47.1%
EBIT growth 3Y-17.84%
EBIT growth 5Y3.51%
EBIT Next Year-2.98%
EBIT Next 3Y10.9%
EBIT Next 5Y16.88%
FCF growth 1Y-83.08%
FCF growth 3Y-9.64%
FCF growth 5Y18.49%
OCF growth 1Y-76.02%
OCF growth 3Y-10.67%
OCF growth 5Y8.27%

NIKE INC -CL B / NKE Fundamental Analysis FAQ

What is the fundamental rating for NKE stock?

ChartMill assigns a fundamental rating of 5 / 10 to NKE.


What is the valuation status of NIKE INC -CL B (NKE) stock?

ChartMill assigns a valuation rating of 1 / 10 to NIKE INC -CL B (NKE). This can be considered as Overvalued.


Can you provide the profitability details for NIKE INC -CL B?

NIKE INC -CL B (NKE) has a profitability rating of 7 / 10.


Can you provide the financial health for NKE stock?

The financial health rating of NIKE INC -CL B (NKE) is 6 / 10.


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 106.18%.