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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nike Inc
NKE : NYSE : Consumer Goods
$78.55 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,244,600
08/29/14 - 4:04 PM ET

Financial Analysis


NIKE INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. NIKE INC has strong liquidity. Currently, the Quick Ratio is 1.71 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.97% 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 Q4 FY13 Q4 FY12
Net Sales ($mil)7425.06697.0
EBITDA ($mil)1077.01038.0
EBIT ($mil)937.0918.0
Net Income ($mil)698.0668.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)5142.05965.0
Total Assets ($mil)18594.017584.0
Total Debt ($mil)1447.01469.0
Equity ($mil)10824.011156.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin47.4745.63
EBITDA Margin14.515.49
Operating Margin12.6213.71
Sales Turnover1.51.44
Return on Assets14.4814.13
Return on Equity24.8722.08
Debt Q4 FY13 Q4 FY12
Current Ratio2.723.47
Debt/Capital0.120.12
Interest Expense4.09.0
Interest Coverage234.25102.0


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)870.0894.0
Div / share0.240.21
EPS0.780.76
Book value / share12.4412.48
Institutional Own % n/a n/a
Avg Daily Volume3215539.03618501.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.54 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 19.80. For additional comparison, its price-to-book ratio of 6.34 indicates a significant premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 6.63. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, NIKE INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NKE 26.45 Peers 29.54   NKE 22.84 Peers 27.99

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NKE 20.26 Peers 26.21   NKE 1.87 Peers 1.71

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

NKE is trading at a discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKE 6.34 Peers 6.63   NKE 10.57 Peers 31.69

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 significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NKE 2.47 Peers 2.64   NKE 9.82 Peers 13.22

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

NKE significantly trails its peers on the basis of sales growth

 

 

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