NIKE, Inc. (NKE) stock analysis

P/E below its 5-year median

NIKE's P/E of 18.4 is below its own 5-year median of 30.0.

P/E below the industry

NIKE's P/E of 18.4 is below the Rubber and Miscellaneous Plastics Products median of 24.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

NIKE's price-to-book of 3.74 is below the Rubber and Miscellaneous Plastics Products median of 3.76.

Trading below fair value

The share price of $38.32 is below our fair value estimate of $47.58.

Margin of safety under 20%

The price is 19.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -13.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 6.8% over the last twelve months, against a 5-year average of -11.5% a year.

Growing slower than the industry

Revenue grew -1.2% over the last twelve months; the Rubber and Miscellaneous Plastics Products median is 7.8%.

Guidance issued

The latest outlook (fiscal 2027 Adjusted Diluted earnings per share, Oct 1, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 43.1% over the last twelve months, against 41.9% a year earlier.

Return on equity over 15%

Return on equity was 21.6% over the last twelve months and averaged 32.7% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

NIKE's return on equity of 21.6% is above the Rubber and Miscellaneous Plastics Products median of 9.7%.

Earnings shrank over 5 years

Net income shrank 11.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.7% over the last twelve months, against a 5-year average of 9.5%.

Net margin above the industry

NIKE's net margin of 6.7% is above the Rubber and Miscellaneous Plastics Products median of 6.7%.

High debt

Debt is 51.9% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 73.7% five years ago to 51.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 35.2% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.07 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.11; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

NIKE paid dividends worth 4.3% of the share price over the last twelve months.

Yield below Treasuries

The 4.3% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; NIKE yields 4.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 78.4% of net income.

Not covered by free cash flow

Dividends take 115% of free cash flow.