NYSE:NKE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with limited growth.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.6%

NKE

-0.5%

US Luxury

-1.3%

US Market


1 Year Return

39.2%

NKE

18.6%

US Luxury

18.5%

US Market

Return vs Industry: NKE exceeded the US Luxury industry which returned 18.6% over the past year.

Return vs Market: NKE exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

NKEIndustryMarket
7 Day0.6%-0.5%-1.3%
30 Day13.3%12.0%5.3%
90 Day30.7%23.2%7.5%
1 Year40.6%39.2%20.0%18.6%21.3%18.5%
3 Year141.6%133.9%78.3%70.0%42.4%32.9%
5 Year107.2%95.7%61.5%50.9%84.2%63.5%

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?

74.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NKE ($128.49) is trading above our estimate of fair value ($76.28)

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 (74.5x) compared to the US Luxury industry average (32.2x).

PE vs Market: NKE is poor value based on its PE Ratio (74.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: NKE is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: NKE is overvalued based on its PB Ratio (21.8x) 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 30 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NKE's forecast earnings growth (16.8% per year) is above the savings rate (2.2%).

Earnings vs Market: NKE's earnings (16.8% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: NKE's revenue (9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: NKE's revenue (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 (61%).


Next Steps

Past Performance

How has NIKE performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NKE has high quality earnings.

Growing Profit Margin: NKE's current net profit margins (7.2%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: NKE's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: NKE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NKE had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Luxury industry average (-47.1%).


Return on Equity

High ROE: Whilst NKE's Return on Equity (29.16%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is NIKE's financial position?


Financial Position Analysis

Short Term Liabilities: NKE's short term assets ($21.9B) exceed its short term liabilities ($8.6B).

Long Term Liabilities: NKE's short term assets ($21.9B) exceed its long term liabilities ($15.4B).


Debt to Equity History and Analysis

Debt Level: NKE's debt to equity ratio (103.5%) is considered high.

Reducing Debt: NKE's debt to equity ratio has increased from 8.9% to 103.5% over the past 5 years.

Debt Coverage: NKE's debt is well covered by operating cash flow (31.1%).

Interest Coverage: NKE's interest payments on its debt are well covered by EBIT (25x coverage).


Balance Sheet


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NKE's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: NKE's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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?

1.1yrs

Average management tenure


CEO

John Donahoe (59 yo)

0.75

Tenure

US$54,377,451

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 ($USD54.38M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Parker
Executive Chairman4.33yrsUS$18.20m0.090%
$ 180.7m
John Donahoe
President0.75yrUS$54.38m0.0013%
$ 2.7m
Matthew Friend
Executive VP & CFO0.50yrUS$3.31m0.0015%
$ 3.0m
Andrew Campion
Chief Operating Officer0.50yrUS$5.94m0.00011%
$ 221.9k
Hilary Krane
Executive VP7.75yrsUS$5.94m0.0057%
$ 11.5m
Monique Matheson
Executive VP & Chief Human Resources Officer3.25yrsUS$5.92m0.0022%
$ 4.5m
Philip Knight
Co-Founder & Chairman Emeritus4.33yrsUS$3.46m17.12%
$ 34.5b
Nitesh Sharan
VP of Corporate Finance & Treasurer1.08yrsno datano data
Andy Muir
Vice President of Investor Relationsno datano datano data
Ann Miller
VP, Corporate Secretary and Chief Ethics & Compliance Officerno datano datano data
Kellie Leonard
Vice President of Global Corporate Communications8.08yrsno datano data
Dirk-Jan van Hameren
VP & Chief Marketing Officer2.75yrsno datano data

1.1yrs

Average Tenure

56yo

Average Age

Experienced Management: NKE's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Parker
Executive Chairman4.33yrsUS$18.20m0.090%
$ 180.7m
John Donahoe
President0.75yrUS$54.38m0.0013%
$ 2.7m
Philip Knight
Co-Founder & Chairman Emeritus4.33yrsUS$3.46m17.12%
$ 34.5b
Timothy Cook
Lead Independent Director4.33yrsUS$345.05k0.0020%
$ 4.0m
Alan Graf
Independent Director17.92yrsUS$305.05k0.012%
$ 24.7m
Michelle Peluso
Independent Director6.5yrsUS$314.02k0.0014%
$ 2.9m
John Rogers
Independent Director1.92yrsUS$295.05k0.00092%
$ 1.9m
John Connors
Independent Director15.5yrsUS$300.05k0.0030%
$ 6.0m
Elizabeth Comstock
Independent Director9.5yrsUS$295.05k0.0012%
$ 2.4m
Travis Knight
Director5.33yrsUS$275.05k2.61%
$ 5.3b
Cathleen Benko
Independent Director2.25yrsUS$295.05k0.00051%
$ 1.0m
Peter Henry
Independent Director2.67yrsUS$283.17k0.00036%
$ 726.1k

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: NKE's board of directors are considered experienced (4.8 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$201.707b
  • Shares outstanding: 1.57b
  • 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
NKEDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/3 ORD CLS'B'NPVARUSDJul 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 Analysis2020/10/21 00:47
End of Day Share Price2020/10/20 00:00
Earnings2020/08/31
Annual Earnings2020/05/31


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.