NKE : NYSE : Consumer Goods
$52.59 | %
Today's Range: 52.23 - 52.76
Avg. Daily Volume: 9527700.0
05/26/17 - 4:02 PM ET

Financial Analysis


NIKE INC's gross profit margin for the third quarter of its fiscal year 2016 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 1.88 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having 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 3.43% 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 FY16 Q3 FY15
Net Sales ($mil)8432.08032.0
EBITDA ($mil)1429.01290.0
EBIT ($mil)1254.01123.0
Net Income ($mil)1141.0950.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)6160.05106.0
Total Assets ($mil)23152.020987.0
Total Debt ($mil)3501.02055.0
Equity ($mil)12722.012300.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin46.5548.01
EBITDA Margin16.9416.06
Operating Margin14.8713.98
Sales Turnover1.461.52
Return on Assets17.6118.0
Return on Equity32.0530.72
Debt Q3 FY16 Q3 FY15
Current Ratio3.073.06
Debt/Capital0.220.14
Interest Expense27.09.0
Interest Coverage46.44124.78


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1652.01685.0
Div / share0.180.16
EPS0.680.55
Book value / share7.77.3
Institutional Own % n/a n/a
Avg Daily Volume9430950.09041388.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.48 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 6.71 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 4.93. The current price-to-sales ratio is 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 21.53 Peers 23.48   NKE 21.79 Peers 16.89

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 20.27 Peers 20.30   NKE 1.94 Peers 2.26

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 6.71 Peers 4.93   NKE 11.11 Peers 14.38

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.

 

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

However, NKE is expected to 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 2.52 Peers 2.13   NKE 6.28 Peers 14.54

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 significantly trails its peers on the basis of sales growth

 

 

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