NIKE Inc.Find Ratings Reports
NIKE INC's gross profit margin for the first quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. NIKE INC has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.31% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY19||Q1 FY18|
|Net Sales ($mil)||10660.0||9948.0|
|Net Income ($mil)||1367.0||1092.0|
|Balance Sheet||Q1 FY19||Q1 FY18|
|Cash & Equiv. ($mil)||3644.0||4269.0|
|Total Assets ($mil)||26249.0||22483.0|
|Total Debt ($mil)||6821.0||3486.0|
|Profitability||Q1 FY19||Q1 FY18|
|Gross Profit Margin||47.28||45.99|
|Return on Assets||16.39||9.22|
|Return on Equity||46.78||23.07|
|Debt||Q1 FY19||Q1 FY18|
|Share Data||Q1 FY19||Q1 FY18|
|Shares outstanding (mil)||1560.0||1589.0|
|Div / share||0.22||0.4|
|Book value / share||5.9||5.66|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6379972.0||5933486.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 33.19 for the Leather and Allied Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 23.26. For additional comparison, its price-to-book ratio of 16.45 indicates a significant premium versus the S&P 500 average of 3.47 and a significant premium versus the subsector average of 11.75. The current price-to-sales ratio is well above the S&P 500 average and above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, NIKE INC proves to trade at a premium to investment alternatives.
|NKE 36.19||Peers 34.79||NKE 30.33||Peers 27.94|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation.
NKE is trading at a valuation on par with 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.
|NKE 28.24||Peers 28.23||NKE 1.84||Peers 2.03|
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.
Average. 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 valuation on par to its peers.
|NKE 16.45||Peers 11.75||NKE 114.40||Peers 250.21|
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 significantly trail its peers on the basis of its earnings growth rate.
|NKE 3.80||Peers 3.36||NKE 6.85||Peers 26.02|
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 subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
NKE significantly trails its peers on the basis of sales growth.