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NKE

NIKENYSE:NKE Stock Report

Market Cap

US$249.2b

7D

1.3%

1Y

27.9%

Updated

23 Sep, 2021

Data

Company Financials +
NKE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance6/6
Financial Health4/6
Dividends0/6

NKE Overview

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide.

NIKE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NIKE
Historical stock prices
Current Share PriceUS$159.58
52 Week HighUS$118.80
52 Week LowUS$174.38
Beta0.87
1 Month Change-6.12%
3 Month Change3.39%
1 Year Change27.92%
3 Year Change88.76%
5 Year Change205.94%
Change since IPO18,056.66%

Recent News & Updates

Sep 24

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.

Sep 14

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.

Sep 09
Supply Chain Woes Should Not Impact NIKE's (NYSE:NKE) Dividend

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.

Sep 08
Is NIKE (NYSE:NKE) Using Too Much Debt?

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...

Aug 25

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.

Shareholder Returns

NKEUS LuxuryUS Market
7D1.3%0.8%-0.5%
1Y27.9%37.6%37.5%

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.

Price Volatility

Is NKE's price volatile compared to industry and market?
NKE volatility
NKE Beta0.87
Industry Beta1.13
Market Beta1

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

FoundedEmployeesCEOWebsite
196473,300John Donahoehttps://www.nike.com

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

How do NIKE's earnings and revenue compare to its market cap?
NKE fundamental statistics
Market CapUS$249.24b
Earnings (TTM)US$5.73b
Revenue (TTM)US$44.54b

44.1x

P/E Ratio

5.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NKE income statement (TTM)
RevenueUS$44.54b
Cost of RevenueUS$24.54b
Gross ProfitUS$20.00b
ExpensesUS$14.27b
EarningsUS$5.73b

Last Reported Earnings

May 31, 2021

Next Earnings Date

Sep 23, 2021

Earnings per share (EPS)3.64
Gross Margin44.91%
Net Profit Margin12.86%
Debt/Equity Ratio73.7%

How did NKE perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

29%

Payout Ratio

Valuation

Is NIKE undervalued compared to its fair value and its price relative to the market?

44.11x

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).


Future Growth

How is NIKE forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

13.1%

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%).


Past Performance

How has NIKE performed over the past 5 years?

0.9%

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.


Financial Health

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).


Balance Sheet


Dividend

What is NIKE current dividend yield, its reliability and sustainability?

0.69%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

John Donahoe (60 yo)

1.67yrs

Tenure

US$32,920,708

Compensation

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.


Leadership Team

Experienced Management: NKE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NKE's board of directors are considered experienced (5.8 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NIKE, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • NIKE, Inc.
  • One Bowerman Drive
  • Beaverton
  • Oregon
  • 97005-6453
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:56
End of Day Share Price2021/09/23 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.