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Nike Inc.
NKE : NYSE : Consumer Goods

$73.10 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 4,198,600
04/16/14 - 4:01 PM ET

Financial Analysis


NIKE INC's gross profit margin for the third quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NIKE INC is extremely liquid. Currently, the Quick Ratio is 2.12 which clearly shows the ability to cover any short-term cash needs. NKE managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY13 Q3 FY12
Net Sales ($mil)6972.06187.0
EBITDA ($mil)1072.0987.0
EBIT ($mil)937.0873.0
Net Income ($mil)685.0866.0


Balance Sheet Q3 FY13 Q3 FY12
Cash & Equiv. ($mil)5029.04042.0
Total Assets ($mil)17803.015615.0
Total Debt ($mil)1327.0321.0
Equity ($mil)11133.010667.0


Profitability Q3 FY13 Q3 FY12
Gross Profit Margin46.446.02
EBITDA Margin15.3715.95
Operating Margin13.4414.11
Sales Turnover1.521.59
Return on Assets14.9915.15
Return on Equity24.2321.81
Debt Q3 FY13 Q3 FY12
Current Ratio3.393.37
Debt/Capital0.110.03
Interest Expense12.04.0
Interest Coverage78.08218.25


Share Data Q3 FY13 Q3 FY12
Shares outstanding (mil)881.0893.62
Div / share0.480.42
EPS0.760.73
Book value / share12.6411.94
Institutional Own % n/a n/a
Avg Daily Volume4129385.03286830.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.91 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 18.29. Conducting a second comparison, its price-to-book ratio of 5.73 indicates a significant premium versus the S&P 500 average of 2.52 and a premium versus the industry average of 5.55. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NKE 24.39 Peers 29.91   NKE 21.12 Peers 22.96

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.

 

Average. 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 valuation on par 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 21.56 Peers 26.13   NKE 2.43 Peers 1.68

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKE 5.73 Peers 5.55   NKE 17.15 Peers 14.43

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.

 

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NKE 2.36 Peers 2.71   NKE 8.92 Peers 13.78

Discount. 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 discount to 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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