NIKE INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NIKE INC has strong liquidity. Currently, the Quick Ratio is 1.59 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.09% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||7460.0||6972.0|
|Net Income ($mil)||791.0||682.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||5361.0||5029.0|
|Total Assets ($mil)||20541.0||17803.0|
|Total Debt ($mil)||1251.0||1327.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||47.96||46.4|
|Return on Assets||15.12||14.95|
|Return on Equity||25.11||24.17|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||860.0||881.0|
|Div / share||0.56||0.48|
|Book value / share||14.38||12.64|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3678966.0||3186916.0|
BUY. The current P/E ratio indicates a discount compared to an average of 32.78 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 20.57. Conducting a second comparison, its price-to-book ratio of 6.95 indicates a significant premium versus the S&P 500 average of 2.84 and a premium versus the industry average of 6.65. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, NIKE INC seems to be trading at a discount to investment alternatives within the industry.
|NKE 28.54||Peers 32.78||NKE 18.42||Peers 28.72|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
NKE is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
NKE is trading at a significant discount to its peers.
|NKE 25.36||Peers 28.69||NKE 1.46||Peers 1.76|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
NKE is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
NKE trades at a discount to its peers.
|NKE 6.95||Peers 6.65||NKE 18.24||Peers 20.51|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
NKE is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, NKE is expected to trail its peers on the basis of its earnings growth rate.
|NKE 2.84||Peers 2.91||NKE 11.73||Peers 10.90|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
NKE is trading at a valuation on par with its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
NKE is keeping pace with its peers on the basis of sales growth.
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