NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$159.58|
|52 Week High||US$118.80|
|52 Week Low||US$174.38|
|1 Month Change||-6.12%|
|3 Month Change||3.39%|
|1 Year Change||27.92%|
|3 Year Change||88.76%|
|5 Year Change||205.94%|
|Change since IPO||18,056.66%|
Recent News & Updates
Nike: Holidays Are Toast
Nike reported strong results for FQ1'22, but the company guided to a dismal holiday season. The athletic apparel company cut the FY22 growth rates in half to only mid-single digits. Factories closed in Vietnam can't reopen in time to manufacture footwear or apparel capable of reaching North American markets prior to the holidays. The stock faces multiple compression along with flat EPS growth to where a 30x multiple (still aggressive) leads to a price target of only $107.
Is Nike Stock A Buy Or Sell Before Upcoming Earnings? Consider Supply Chain Issues And DTC Sales
Nike's stock price performance has been inferior to the major stock indices in 2021 year-to-date, due to concerns over the China boycott, e-commerce sales growth sustainability, and supply chain issues. NKE's upcoming Q1 FY 2022 earnings are unlikely to excite the market, as production disruptions in Vietnam could have been a drag on its financial performance in the quarter. Nike stock is a Hold before upcoming earnings. I like the medium-term growth potential of its DTC strategy, but its Q1 financial results could disappoint and its valuations are rich.
Supply Chain Woes Should Not Impact NIKE's (NYSE:NKE) Dividend
NIKE, Inc.'s (NYSE:NKE) investors are likely not happy with stock's performance in 2021, as it has been lagging the broad market by a fair bit. However, since stock positively surprised on the latest earnings report. As we are waiting for the next earnings report that lands in two weeks, in this article we will take a look at the latest news and examine 3 factors that make the dividend: growth, volatility, and the payout ratio.
Is NIKE (NYSE:NKE) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Nike: Buy The Stock - Just Do It
With a market capitalization of $269.1B, Nike is the largest sportswear brand in the world. As of Aug. 24th, Nike's stock price is $170/share. The company's enormous size, intertwined with its state-of-the-art brand recognition and customer loyalty, has led to a strong economic moat. General consensus deems Nike as overvalued; however, I do not necessarily agree with that notion when looking at Nike's individual history. Nike has traded at a premium in past years, which I believe is warranted given the company's business model and strong financial performance. Nike is a rare case of a very mature company that still has plenty of room for future growth. The company's success will only accelerate moving forward.
|NKE||US Luxury||US Market|
Return vs Industry: NKE underperformed the US Luxury industry which returned 34% over the past year.
Return vs Market: NKE underperformed the US Market which returned 36.2% over the past year.
Stable Share Price: NKE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NKE's weekly volatility (5%) has been stable over the past year.
About the Company
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team, and league logos, as well as sells sports apparel.
NIKE Fundamentals Summary
|NKE fundamental statistics|
Is NKE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NKE income statement (TTM)|
|Cost of Revenue||US$24.54b|
Last Reported Earnings
May 31, 2021
Next Earnings Date
Sep 23, 2021
|Earnings per share (EPS)||3.64|
|Net Profit Margin||12.86%|
How did NKE perform over the long term?See historical performance and comparison
0.7%Current Dividend Yield
Is NIKE undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NKE ($159.58) is trading above our estimate of fair value ($120.95)
Significantly Below Fair Value: NKE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NKE is poor value based on its PE Ratio (44.1x) compared to the US Luxury industry average (19.6x).
PE vs Market: NKE is poor value based on its PE Ratio (44.1x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: NKE is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: NKE is overvalued based on its PB Ratio (19.8x) compared to the US Luxury industry average (1.9x).
How is NIKE forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NKE's forecast earnings growth (13.1% per year) is above the savings rate (2%).
Earnings vs Market: NKE's earnings (13.1% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: NKE's earnings are forecast to grow, but not significantly.
Revenue vs Market: NKE's revenue (8.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: NKE's revenue (8.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NKE's Return on Equity is forecast to be very high in 3 years time (44.2%).
How has NIKE performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NKE has high quality earnings.
Growing Profit Margin: NKE's current net profit margins (12.9%) are higher than last year (6.8%).
Past Earnings Growth Analysis
Earnings Trend: NKE's earnings have grown by 0.9% per year over the past 5 years.
Accelerating Growth: NKE's earnings growth over the past year (125.6%) exceeds its 5-year average (0.9% per year).
Earnings vs Industry: NKE earnings growth over the past year (125.6%) exceeded the Luxury industry 79.5%.
Return on Equity
High ROE: NKE's Return on Equity (44.9%) is considered outstanding.
How is NIKE's financial position?
Financial Position Analysis
Short Term Liabilities: NKE's short term assets ($26.3B) exceed its short term liabilities ($9.7B).
Long Term Liabilities: NKE's short term assets ($26.3B) exceed its long term liabilities ($15.3B).
Debt to Equity History and Analysis
Debt Level: NKE's debt to equity ratio (73.7%) is considered high.
Reducing Debt: NKE's debt to equity ratio has increased from 17% to 73.7% over the past 5 years.
Debt Coverage: NKE's debt is well covered by operating cash flow (70.7%).
Interest Coverage: NKE's interest payments on its debt are well covered by EBIT (27.6x coverage).
What is NIKE current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NKE's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: NKE's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: NKE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: NKE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: NKE is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NKE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Donahoe (60 yo)
Mr. John J. Donahoe, II, has been Non-Executive Chairman and Director of PayPal Holdings, Inc. since July 17, 2015. He serves as Vice Chairman of the Advisory Council at Stanford Graduate School of Busines...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD32.92M) is above average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: NKE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: NKE's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
NIKE, Inc.'s employee growth, exchange listings and data sources
- Name: NIKE, Inc.
- Ticker: NKE
- Exchange: NYSE
- Founded: 1964
- Industry: Footwear
- Sector: Consumer Durables
- Market Cap: US$249.243b
- Shares outstanding: 1.58b
- Website: https://www.nike.com
Number of Employees
- NIKE, Inc.
- One Bowerman Drive
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/23 22:56|
|End of Day Share Price||2021/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.