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 Analysis

Outstanding track record with reasonable growth potential.


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

Stable Share Price: NKE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.4%

NKE

-6.5%

US Luxury

-4.2%

US Market


1 Year Return

12.6%

NKE

4.0%

US Luxury

14.0%

US Market

Return vs Industry: NKE exceeded the US Luxury industry which returned 4% over the past year.

Return vs Market: NKE underperformed the US Market which returned 14% over the past year.


Shareholder returns

NKEIndustryMarket
7 Day-7.4%-6.5%-4.2%
30 Day-6.0%-6.3%-1.8%
90 Day2.8%-1.3%2.6%
1 Year13.8%12.6%6.1%4.0%16.3%14.0%
3 Year72.2%66.3%57.8%50.7%43.2%34.0%
5 Year105.1%94.2%40.3%30.9%65.9%47.6%

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?

4.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NKE ($95.91) is trading below our estimate of fair value ($100.62)

Significantly Below Fair Value: NKE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NKE is poor value based on its PE Ratio (32.9x) compared to the Luxury industry average (16.2x).

PE vs Market: NKE is poor value based on its PE Ratio (32.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: NKE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NKE is overvalued based on its PB Ratio (16x) compared to the US Luxury industry average (1.1x).


Next Steps

Future Growth

How is NIKE forecast to perform in the next 1 to 3 years based on estimates from 31 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 (1.7%).

Earnings vs Market: NKE's earnings (13.1% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: NKE's revenue (7.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NKE's revenue (7.9% 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 (59.6%).


Next Steps

Past Performance

How has NIKE performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NKE has high quality earnings.

Growing Profit Margin: NKE's current net profit margins (11.2%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: NKE's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: NKE's earnings growth over the past year (112.2%) exceeds its 5-year average (1% per year).

Earnings vs Industry: NKE earnings growth over the past year (112.2%) exceeded the Luxury industry 3.5%.


Return on Equity

High ROE: NKE's Return on Equity (48.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NIKE's financial position?


Financial Position Analysis

Short Term Liabilities: NKE's short term assets ($16.4B) exceed its short term liabilities ($8.3B).

Long Term Liabilities: NKE's short term assets ($16.4B) exceed its long term liabilities ($9.0B).


Debt to Equity History and Analysis

Debt Level: NKE's debt to equity ratio (40.3%) is considered high.

Reducing Debt: NKE's debt to equity ratio has increased from 10.4% to 40.3% over the past 5 years.

Debt Coverage: NKE's debt is well covered by operating cash flow (116.3%).

Interest Coverage: NKE's interest payments on its debt are well covered by EBIT (102.7x 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 4.3x debt).


Next Steps

Dividend

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

1.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase NIKE before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: NKE's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: NKE's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

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 (31%), 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 (29.9% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

John Donahoe (58yo)

0.08yrs

Tenure

US$280,009

Compensation

Mr. John J. Donahoe, II, had been the Chief Executive Officer and President of ServiceNow, Inc. since April 3, 2017 until November 2019. He has been a Director of ServiceNow, Inc. since April 3, 2017. Mr.  ...


Leadership Team

NamePositionTenureCompensationOwnership
Mark Parker
Executive Chairman3.7yrsUS$13.97m0.10% $154.6m
John Donahoe
President0.08yrsUS$280.01k0.0014% $2.0m
Andrew Campion
Executive VP & CFO4.5yrsUS$4.88m0.00047% $702.0k
Eric Sprunk
Chief Operating Officer6.6yrsUS$5.39m0.0014% $2.1m
Hilary Krane
Executive VP7.1yrsUS$4.86m0.0033% $4.9m
Elliott Hill
President of Consumer & Marketplace1.9yrsUS$5.38m0.0061% $9.1m
Philip Knight
Co-Founder & Chairman Emeritus3.7yrsUS$3.46m17.79% $26.6b
Nitesh Sharan
VP of Corporate Finance & Treasurer0.4yrsno datano data
Matthew Friend
CFO of Nike Operating Segments & VP of Investor Relations0.4yrsno datano data
Ann Miller
VP, Corporate Secretary and Chief Ethics & Compliance Officer0yrsno datano data

1.2yrs

Average Tenure

55yo

Average Age

Experienced Management: NKE's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Parker
Executive Chairman3.7yrsUS$13.97m0.10% $154.6m
John Donahoe
President0.08yrsUS$280.01k0.0014% $2.0m
Philip Knight
Co-Founder & Chairman Emeritus3.7yrsUS$3.46m17.79% $26.6b
Timothy Cook
Lead Independent Director3.7yrsUS$345.01k0.0019% $2.9m
Alan Graf
Independent Director17.3yrsUS$305.01k0.012% $18.3m
Michelle Peluso
Independent Director5.8yrsUS$295.01k0.0014% $2.0m
John Thompson
Director29.1yrsUS$279.28k0.0031% $4.7m
John Connors
Independent Director14.8yrsUS$300.01k0.0029% $4.3m
Elizabeth Comstock
Independent Director8.8yrsUS$295.01k0.0011% $1.6m
Travis Knight
Director4.7yrsUS$275.01k2.62% $3.9b

5.8yrs

Average Tenure

59yo

Average Age

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 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$149.368b
  • 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
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
NKESNSE (Santiago Stock Exchange)YesClass B Common StockCLUSDDec 1980
NKESWX (SIX Swiss Exchange)YesClass B Common StockCHCHFDec 1980
NKE *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNDec 1980
0QZ6LSE (London Stock Exchange)YesClass B Common StockGBUSDDec 1980
NKEWBAG (Wiener Boerse AG)YesClass B Common StockATEURDec 1980
NKEETLX (Eurotlx)YesClass B Common StockITEURDec 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'NPVARARSJul 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, 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. In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and various plastic products to other manufacturers. Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark. Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:47
End of Day Share Price2020/02/24 00:00
Earnings2019/11/30
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.