NKE : NYSE : Consumer Goods
$50.46 | %
Today's Range: 50.105 - 50.68
Avg. Daily Volume: 9351300.0
12/02/16 - 4:00 PM ET

Financial Analysis


NIKE INC's gross profit margin for the first quarter of its fiscal year 2016 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 1.55 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 decreased by 5.65% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)9061.08414.0
EBITDA ($mil)1399.01572.0
EBIT ($mil)1226.01418.0
Net Income ($mil)1249.01179.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)4787.05408.0
Total Assets ($mil)21156.020766.0
Total Debt ($mil)2059.01208.0
Equity ($mil)12165.012894.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin47.4149.31
EBITDA Margin15.4318.68
Operating Margin13.5316.85
Sales Turnover1.561.49
Return on Assets18.116.8
Return on Equity31.4827.06
Debt Q1 FY16 Q1 FY15
Current Ratio2.722.89
Debt/Capital0.140.09
Interest Expense11.06.0
Interest Coverage111.45236.33


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1668.01707.0
Div / share0.160.0
EPS0.730.67
Book value / share7.297.55
Institutional Own % n/a n/a
Avg Daily Volume9666685.01.0416567E7

Valuation


BUY. NIKE INC's P/E ratio indicates a discount compared to an average of 24.75 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 7.07 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 5.34. The current price-to-sales ratio is well above the S&P 500 average and above 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 23.24 Peers 24.75   NKE 25.99 Peers 20.01

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 significant premium 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 19.11 Peers 20.83   NKE 2.28 Peers 2.75

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKE 7.07 Peers 5.34   NKE 12.40 Peers 5.25

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 2.61 Peers 2.24   NKE 6.41 Peers 6.70

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.

 

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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