About Nike, Inc.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America. The company offers its products under the NIKE, Jordan, Converse, Jumpman, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also provides a line of performance equipment and accessories, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and sports apparel, as well as sells products to wholesale customers and directly to consumers through NIKE Direct operations; distributes and licenses casual sneakers, apparel, and accessories; and markets apparel with licensed college and professional team and league logos. In addition, the company offers consumer services and experiences, including sport focused events and activations; fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other wholesale accounts through NIKE-owned retail stores, independent distributors, licensees, sales representatives, and digital platforms. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in May 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
Nike, Inc. (NKE) is a Consumer Cyclical company in the Footwear & Accessories industry with a market capitalisation of $54.6B. The stock trades at 17.52x trailing earnings and yields 4.46%.
- Sector
- Consumer Cyclical
- Industry
- Footwear & Accessories
- Market cap
- $54.6B
- P/E ratio
- 17.52
- Forward P/E
- 16.06
- EPS (TTM)
- $2.10
- Revenue (TTM)
- $46.4B
- Free cash flow
- $1.9B
- Profit margin
- 6.7%
- Dividend yield
- 4.46%
- Beta
- 1.11
- Shares outstanding
- 1.2B
Financial health: Fair7.3/10
6 strengths, 1 concern. Weakest points: revenue growth.
- Debt to equity: 0.53 (Watch, benchmark < 0.5) — Debt of 0.53x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.2y (Strong, benchmark < 4 years) — Net debt of $379.0M is 0.2x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 1.96 (Strong, benchmark > 1.5) — Short-term assets cover 1.96x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 22.1% (Strong, benchmark > 15%) — Earns 22.1% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 43.2% (Strong, benchmark > 40%) — Keeps 43.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 6.7% (Watch, benchmark > 10%) — Turns 6.7% of revenue into profit, short of the > 10% mark.
- Free cash flow: $2.2B (Strong, benchmark positive) — Generated $2.2B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: -1.1% (Concern, benchmark > 10%) — Revenue changed -1.1% year on year, well short of the > 10% mark.
- Earnings growth: 428.0% (Strong, benchmark > 10%) — Earnings changed 428.0% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.43 (Watch, benchmark < 1) — At 1.43, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 77.6% (Watch, benchmark < 60%) — Pays out 77.6% of earnings as dividends — above the level usually considered sustainable.