NYSE:NKE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has NIKE's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

NKE

1.8%

US Luxury

0.5%

US Market


1 Year Return

28.5%

NKE

15.3%

US Luxury

6.8%

US Market

Return vs Industry: NKE exceeded the US Luxury industry which returned 15.3% over the past year.

Return vs Market: NKE exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

NKEIndustryMarket
7 Day1.4%1.8%0.5%
30 Day11.0%8.0%-0.8%
90 Day11.0%5.0%-0.9%
1 Year29.9%28.5%17.6%15.3%9.2%6.8%
3 Year92.3%85.5%56.6%49.6%45.6%36.2%
5 Year122.5%110.0%53.3%43.3%63.2%45.4%

Price Volatility Vs. Market

How volatile is NIKE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

35.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NKE ($96.22) is trading above our estimate of fair value ($79.38)

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 (35.1x) compared to the Luxury industry average (16.7x).

PE vs Market: NKE is poor value based on its PE Ratio (35.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NKE is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: NKE is overvalued based on its PB Ratio (16.3x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

How is NIKE forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NKE's forecast earnings growth (13% per year) is above the savings rate (2.7%).

Earnings vs Market: NKE's earnings (13% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: NKE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NKE's revenue (7.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: NKE's revenue (7.5% 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 (58.6%).


Next Steps

Past Performance

How has NIKE performed over the past 5 years?

0.06%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NKE's earnings have grown by 0.06% per year over the past 5 years.

Accelerating Growth: NKE's earnings growth over the past year (107.4%) exceeds its 5-year average (0.06% per year).

Earnings vs Industry: NKE earnings growth over the past year (107.4%) exceeded the Luxury industry 23.9%.


Return on Equity

High ROE: NKE's Return on Equity (46.8%) is considered outstanding.


Return on Assets

ROA vs Industry: NKE has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: NKE has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is NIKE's financial position?


Financial Position Analysis

Short Term Liabilities: NKE's short term assets ($16.2B) exceeds its short term liabilities ($8.1B)

Long Term Liabilities: NKE's short term assets (16.2B) exceeds its long term liabilities (9.0B)


Debt to Equity History and Analysis

Debt Level: NKE's debt to equity ratio (40.4%) is considered high

Reducing Debt: NKE's debt to equity ratio has increased from 10.3% to 40.4% over the past 5 years.

Debt Coverage: NKE's debt is well covered by operating cash flow (134.3%).

Interest Coverage: NKE's interest payments on its debt are well covered by EBIT (94x coverage).


Balance Sheet

Inventory Level: NKE has a high level of physical assets or inventory.

Debt Coverage by Assets: NKE's debt is covered by short term assets (assets are 4.363530x debt).


Next Steps

Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NKE's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NKE's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: NKE's dividend payments have been volatile in the past 10 years.

Growing Dividend: NKE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), NKE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NKE's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

What is the CEO of NIKE's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Mark Parker (63yo)

13.8yrs

Tenure

US$13,968,022

Compensation

Mr. Mark G. Parker has been Chief Executive Officer and President at Nike, Inc. since January 2006 and has been its Chairman since June 30, 2016. Mr. Parker is responsible for the growth of Nike Inc.'s glo ...


CEO Compensation Analysis

Compensation vs. Market: Mark's total compensation ($USD13.97M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.2yrs

Average Tenure

55yo

Average Age

Experienced Management: NKE's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

59yo

Average Age

Experienced Board: NKE's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Phil Knight (81yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 3.3yrs
    • Compensation: US$3.46m
  • Mark Parker (63yo)

    Chairman

    • Tenure: 13.8yrs
    • Compensation: US$13.97m
  • Eric Sprunk (55yo)

    Chief Operating Officer

    • Tenure: 6.3yrs
    • Compensation: US$5.39m
  • Elliott Hill (55yo)

    President of Consumer & Marketplace

    • Tenure: 1.6yrs
    • Compensation: US$5.38m
  • Hilary Krane (55yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$4.86m
  • Andy Campion (47yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$4.88m
  • Kellie Leonard

    Vice President of Global Corporate Communications

    • Tenure: 7.1yrs
  • Ann Miller

    VP, Corporate Secretary and Chief Ethics & Compliance Officer

    • Tenure: 0yrs
  • Nitesh Sharan

    VP of Corporate Finance & Treasurer

    • Tenure: 0.08yrs
  • Matthew Friend

    CFO of Nike Operating Segments & VP of Investor Relations

    • Tenure: 0.08yrs

Board Members

  • Tim Cook (58yo)

    Lead Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$345.01k
  • Alan Graf (65yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$305.01k
  • Phil Knight (81yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 3.3yrs
    • Compensation: US$3.46m
  • Mark Parker (63yo)

    Chairman

    • Tenure: 13.8yrs
    • Compensation: US$13.97m
  • Michelle Peluso (47yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$295.01k
  • John Thompson (78yo)

    Director

    • Tenure: 28.8yrs
    • Compensation: US$279.28k
  • John Connors (60yo)

    Independent Director

    • Tenure: 14.5yrs
    • Compensation: US$300.01k
  • John Donahoe (58yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$280.01k
  • Elizabeth Comstock (58yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$295.01k
  • Travis Knight (45yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$275.01k

Company Information

NIKE, Inc.'s company bio, 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$150.204b
  • Shares outstanding: 1.56b
  • Website: https://www.nike.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKESNSE (Santiago Stock Exchange)YesClass B Common StockCLUSDDec 1980
NKENYSE (New York Stock Exchange)YesClass B Common StockUSUSDDec 1980
NKEDB (Deutsche Boerse AG)YesClass B Common StockDEEURDec 1980
NKEXTRA (XETRA Trading Platform)YesClass B Common StockDEEURDec 1980
NKEWBAG (Wiener Boerse AG)YesClass B Common StockATEURDec 1980
0QZ6LSE (London Stock Exchange)YesClass B Common StockGBUSDDec 1980
NKESWX (SIX Swiss Exchange)YesClass B Common StockCHCHFDec 1980
NKE *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNDec 1980
US_NKE_KAS (Kazakhstan Stock Exchange)YesClass B Common StockKZKZTDec 1980
NKEBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/3 ORD CLS'B'NPV(USD)ARARSJul 2001
NIKE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM CL 'B' NPVBRBRLDec 2011

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:40
End of Day Share Price2019/10/21 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


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.