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Nike Inc
NKE : NYSE : Consumer Goods
$56.42 up0.42 | 0.75%
Today's Range: 55.50 - 57.45
Avg. Daily Volume: 10,537,400
02/12/16 - 4:00 PM ET

Financial Analysis


NIKE INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. NIKE INC has strong liquidity. Currently, the Quick Ratio is 1.76 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.57% 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 Q2 FY15 Q2 FY14
Net Sales ($mil)7686.07380.0
EBITDA ($mil)1101.01043.0
EBIT ($mil)941.0889.0
Net Income ($mil)785.0655.0


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)6116.04713.0
Total Assets ($mil)22583.019167.0
Total Debt ($mil)2171.01287.0
Equity ($mil)13405.011700.0


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin47.6347.17
EBITDA Margin14.3214.13
Operating Margin12.2412.05
Sales Turnover1.391.55
Return on Assets16.0215.63
Return on Equity27.025.61
Debt Q2 FY15 Q2 FY14
Current Ratio3.042.84
Debt/Capital0.140.1
Interest Expense7.011.0
Interest Coverage134.4380.82


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)1707.01728.0
Div / share0.140.0
EPS0.450.37
Book value / share7.856.77
Institutional Own % n/a n/a
Avg Daily Volume7289979.04421719.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.45 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 7.66 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 6.12. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NKE 29.28 Peers 29.45   NKE 22.94 Peers 27.64

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

NKE is trading at a valuation on par with 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 24.41 Peers 25.79   NKE NM Peers 1.71

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKE 7.66 Peers 6.12   NKE 22.32 Peers 14.62

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NKE is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

NKE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NKE 3.28 Peers 2.69   NKE 5.30 Peers 6.50

Premium. 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 premium to its industry on this measurement.

 

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

NKE trails its peers on the basis of sales growth

 

 

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