About Nike, Inc.
Nike, Inc. (NKE) is a Basic Materials company in the Rubber & Plastics Footwear industry with a market capitalisation of $51.8B. The stock trades at 16.71x trailing earnings and yields 4.7%.
- Sector
- Basic Materials
- Industry
- Rubber & Plastics Footwear
- Market cap
- $51.8B
- P/E ratio
- 16.71
- EPS (TTM)
- $2.10
- Revenue (TTM)
- $46.4B
- Free cash flow
- $2.2B
- Profit margin
- 6.7%
- Dividend yield
- 4.7%
- Shares outstanding
- 855.4M
Financial health: Fair7/10
5 strengths, 1 concern. Weakest points: earnings 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: 20.9% (Strong, benchmark > 15%) — Earns 20.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 42.9% (Strong, benchmark > 40%) — Keeps 42.9% 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: 0.2% (Watch, benchmark > 10%) — Revenue changed 0.2% year on year, short of the > 10% mark.
- Earnings growth: -3.5% (Concern, benchmark > 10%) — Earnings changed -3.5% year on year, well short of the > 10% mark.
- Payout ratio: 77.4% (Watch, benchmark < 60%) — Pays out 77.4% of earnings as dividends — above the level usually considered sustainable.