NKE : NYSE : Consumer Goods
$55.93 -0.43 | -0.76%
Today's Range: 55.54 - 56.249
Avg. Daily Volume: 9636400.0
03/27/17 - 3:59 PM ET

Financial Analysis


NIKE INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 industry this quarter as compared to the same quarter a year ago. 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)0.01290.0
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 Margin44.4748.01
EBITDA Margin0.016.06
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 Expense0.09.0
Interest Coverage0.0124.78


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1656.01685.0
Div / share0.180.16
EPS0.680.55
Book value / share7.687.3
Institutional Own % n/a n/a
Avg Daily Volume9624162.09901179.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.80 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 7.21 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 5.11. The price-to-sales ratio is well 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 23.07 Peers 23.80   NKE NA Peers 15.43

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NKE 21.46 Peers 20.73   NKE 2.08 Peers 2.02

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NKE 7.21 Peers 5.11   NKE 11.11 Peers 9.53

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NKE 2.70 Peers 2.19   NKE 6.28 Peers 5.97

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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