NIKE INC's gross profit margin for the third 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 1.73 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 remained unchanged 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 FY15||Q3 FY14|
|Net Sales ($mil)||8032.0||7460.0|
|Net Income ($mil)||950.0||791.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||5106.0||5361.0|
|Total Assets ($mil)||20987.0||20541.0|
|Total Debt ($mil)||2055.0||1251.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||48.01||47.96|
|Return on Assets||18.0||15.12|
|Return on Equity||30.72||25.11|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1685.0||1720.0|
|Div / share||0.16||0.28|
|Book value / share||7.3||7.19|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9839532.0||6888224.0|
BUY. The current P/E ratio indicates a discount compared to an average of 28.41 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 8.02 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 6.01. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|NKE 27.10||Peers 28.41||NKE 30.42||Peers 27.18|
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.
Premium. 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 premium to its peers.
|NKE 23.89||Peers 24.23||NKE NM||Peers 1.75|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
NKE is trading at a premium to 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.
|NKE 8.02||Peers 6.01||NKE 23.42||Peers 12.54|
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.
|NKE 3.09||Peers 2.44||NKE 5.50||Peers 8.38|
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 significant premium to its industry.
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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