Nike (NKE)
Consumer Discretionary · $53.5B market cap · SEC CIK 0000320187
fundamentals score out of 100
Next reports on Mar 29, 2027, with analysts expecting $0.43 in earnings per share.
The case for NKE
- Reasonably priced at 17.2× earnings.
- Return on equity of 22%.
- Pays a modest 1.4% dividend.
The case against
- Down 49.1% over the past year.
- Revenue was flat on the year (+0.2%).
- Near the bottom of its 52-week range, 53% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 65 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 17 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 44 |
| Momentumhow the price has behaved lately | 8 |
| Stabilityhow violently it moves, what it owes and what it pays you | 50 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 17.2× |
|---|---|
| Price / book | 4.58× |
| Price / sales | 1.2× |
| Revenue growth (YoY) | +0.2% |
| EPS growth (YoY) | -2.8% |
| Gross margin | 43% |
| Operating margin | 8% |
| Net margin | 7% |
| Return on equity | 22% |
| Debt / equity | 0.53× |
| Current ratio | 1.96 |
| Dividend yield | 1.37% |
| Beta | 1.06 |
| 52-week range | $35.35 – $76.97 |
| Position in that range | 2% of the way up |
| 3-month return | -20.1% |
| 1-year return | -49.1% |
Five years of financials, as filed
Pulled from Nike's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $46.4B | $46.3B | $51.4B | $51.2B | $46.7B |
| Gross profit | $19.9B | $19.8B | $22.9B | $22.3B | $21.5B |
| Net income | $3.1B | $3.2B | $5.7B | $5.1B | $6.0B |
| Operating cash flow | $2.9B | $3.7B | $7.4B | $5.8B | $5.2B |
| Capital expenditure | $684M | $430M | $812M | $969M | $758M |
| Total assets | $37.8B | $38.0B | $37.2B | $39.6B | $38.9B |
| Shareholder equity | $14.1B | $14.0B | $14.1B | $15.3B | $14.9B |
| Cash | $7.0B | $8.0B | $7.9B | $6.5B | $10.8B |
| Long-term debt | $7.0B | $8.0B | $8.9B | $8.9B | $9.4B |
| Free cash flow | $2.2B | $3.3B | $6.6B | $4.9B | $4.4B |
| Gross margin | 42.9% | 42.7% | 44.6% | 43.5% | 46.0% |
| Net margin | 6.7% | 7.0% | 11.1% | 9.9% | 12.9% |
| Diluted shares | 1.5B | 1.5B | 1.5B | 1.6B | 1.6B |
Share count is down 8.1% over 4 years. Buybacks have been shrinking the pie.
What Nike says it does
, "Manufacturing" for additional information. Our ability to meet our customers' needs depends on our ability to maintain a steady supply of products from our contract manufacturers. If one or more of our significant suppliers were to sever or significantly alter the terms of their relationship with us, including due to changes in applicable trade policies, or be unable to perform, we may not be able to obtain replacement products in a timely manner, which could have a material adverse effect on our business operations, sales, financial condition or results of operations. Additionally, if any of our primary footwear contract manufacturers fail to make timely shipments, do not meet our quality standards or otherwise fail to deliver us product in accordance with our plans, there could be a material adverse effect on our results of operations. Certain contract manufacturers are highly specialized and only produce a specific type of…
Risk factors NKE lists in its 10-K
- Earnings Before Interest and Taxes ("EBIT") and EBIT margin
- Return on Invested Capital ("ROIC")
- Equals EBIT multiplied by the effective tax rate as of each of the respective quarter ends
- Total debt includes the following: 1) Current portion of long-term debt, 2) Current portion of operating lease liabilities, 3) Long-term debt and 4) Operating lease liabilities
- (Dollars in millions, except per share data)
- Supplemental NIKE Brand Revenues Details
- The percent change excluding currency changes represents a non-GAAP financial measure. For additional information, see "Use of Non-GAAP Financial Measures"
- Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment
- (1) The percent change excluding currency changes represents a non-GAAP financial measure. For additional information, see "Use of Non-GAAP Financial Measures"
- (2) Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment
- (1) Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin represent non-GAAP financial measures. See "Use of Non-GAAP Financial Measures" for additional information
- (1) Other revenues consist of territories serviced by third-party licensees who pay royalties to Converse for the use of its registered trademarks and other intellectual property rights
- Internal Control — Integrated Framework (2013)
- President and Chief Executive Officer