Nike Inc - Class B
Exchange: NYSESector: Consumer CyclicalIndustry: Footwear & Accessories
NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer), Men's Training, Women's Training, NIKE Sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. In February 2013, it sold its Cole Haan affiliate brand to APAX Partners LLP.
Did you know?
Profit margin stands at 4.8%.
Current Price
$44.20
+3.01%GoodMoat Value
$51.59
16.7% undervaluedProfile
Valuation (TTM)
Market Cap$65.43B
P/E29.08
EV$80.85B
P/B4.95
Shares Out1.48B
P/Sales1.41
Revenue$46.52B
EV/EBITDA19.35
Nike Inc - Class B (NKE) Stock Analysis
GoodMoat Analysis
Nike possesses a strong brand moat and high-quality financials, but its current valuation appears full and growth has stalled. For a value investor, this presents a 'with caution' scenario requiring a deeper look at its ability to reignite profitable growth.
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Nike is a global leader in athletic footwear, apparel, and equipment. Applying the GoodMoat framework, it demonstrates a durable competitive advantage primarily through its powerful brand and culture (Moat Criterion #6), supported by significant scale and pricing power. Its financial quality is strong, with a high Return on Equity of 19.1% and a robust free cash flow yield of 4.2%, indicating efficient capital use and cash generation. However, the business faces a significant challenge with near-zero revenue growth of 0.6% YoY, which is a critical factor for a consumer cyclical stock. The stock's P/E of 31x is elevated, especially relative to this minimal growth, and the current price is only slightly above the neutral GoodMoat Target of $51.59, suggesting a limited margin of safety. Following the Decision Framework, Nike likely passes the Moat & Quality Gate but enters the Valuation & Risk Gate 'with caution.' The combination of a full valuation, stalled growth (a Medium Confidence Red Flag), and a marginal price-to-target spread means it does not present a clearly favourable opportunity without a high-conviction view on a growth turnaround. Further investigation should focus on the sustainability of its margins and catalysts for re-accelerating top-line expansion. Analysis based on data as of 2024-05-15.
Market Cap$65.43B
Current Price$44.20
P/E Ratio29.08
Forward P/E—
PEG Ratio-0.83
EPS$2.16
Book Value$8.93
P/B Ratio4.95
NKE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -6.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.6B
Revenue
39.1B
FY19
37.4B
FY20
44.5B
FY21
46.7B
FY22
51.2B
FY23
51.4B
FY24
46.3B
FY25
Net Income
4.0B
FY19
2.5B
FY20
5.7B
FY21
6.0B
FY22
5.1B
FY23
5.7B
FY24
3.2B
FY25
NKE 52-Week Range
$42.62
$77.80
50-Day MA: $55.90200-Day MA: $65.16
Did you know?
Currently near its 52-week low — in the bottom 4% of its range.
Nike Inc - Class B (NKE) Financial Summary
Nike Inc - Class B (NKE) is a Consumer Cyclical company in the Footwear & Accessories industry, listed on NYSE. The stock currently trades at $44.20 with a market capitalization of $65.43B.
Key valuation metrics include a P/E ratio of 29.08, price-to-book ratio of 4.95, and EPS of $2.16. The company reports a profit margin of 4.8% and return on equity of 17.0%.
NKE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $65.43B |
| P/E Ratio | 29.08 |
| EPS | $2.16 |
| P/B Ratio | 4.95 |
| P/S Ratio | 1.41 |
| EV/EBITDA | 19.35 |
| Dividend Yield | 3.52% |
| Profit Margin | 4.8% |
| Return on Equity | 17.0% |
| Debt/Equity | 0.83 |
NKE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $39.12B | $4.03B |
| FY20 | $37.40B | $2.54B |
| FY21 | $44.54B | $5.73B |
| FY22 | $46.71B | $6.05B |
| FY23 | $51.22B | $5.07B |
| FY24 | $51.36B | $5.70B |
| FY25 | $46.31B | $3.22B |
Nike Inc - Class B (NKE) Valuation
Based on GoodMoat's DCF model, Nike Inc - Class B has a fair value estimate of $51.59. At the current price of $44.20, the stock appears 14.3% undervalued relative to our intrinsic value estimate.
NKE Quality Indicators
Nike Inc - Class B maintains a profit margin of 4.8% and an operating margin of 8.0%. Return on equity stands at 17.0%. The current ratio is 2.21. Debt-to-equity ratio is 0.83.
About Nike Inc - Class B
NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer), Men's Training, Women's Training, NIKE Sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. In February 2013, it sold its Cole Haan affiliate brand to APAX Partners LLP.
NKE Free Cash Flow
Nike Inc - Class B generated $3.27B in trailing twelve-month free cash flow, representing an FCF yield of 4.99%. This moderate FCF yield indicates reasonable cash generation.
NKE Shares Outstanding
Nike Inc - Class B has 1.48 billion shares outstanding at a share price of $44.20, giving it a market capitalization of $65.43B.
NKE Recent Insider Trades
Recent insider transactions at Nike Inc - Class B include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hill Elliott (PRESIDENT & CEO) | BUY | 23,660.24 | $999999.83 |
| COOK TIMOTHY D | BUY | 25,000 | $1.06M |
| ROGERS JOHN W JR | BUY | 4,000 | $173360.00 |