NKE : NYSE : Consumer Goods
$55.50 | %
Today's Range: 55.21 - 55.66
Avg. Daily Volume: 10,793,500
07/29/16 - 4:01 PM ET

Financial Analysis


NIKE INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NIKE INC has strong liquidity. Currently, the Quick Ratio is 1.62 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.53% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)8244.07779.0
EBITDA ($mil)0.01151.0
EBIT ($mil)1020.0998.0
Net Income ($mil)846.0865.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)5457.05924.0
Total Assets ($mil)21396.021600.0
Total Debt ($mil)2055.01265.0
Equity ($mil)12258.012707.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin45.9248.16
EBITDA Margin0.014.79
Operating Margin12.3712.83
Sales Turnover1.511.42
Return on Assets17.5715.15
Return on Equity30.6725.75
Debt Q4 FY15 Q4 FY14
Current Ratio2.82.52
Debt/Capital0.140.09
Interest Expense0.06.0
Interest Coverage0.0166.33


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)1685.01714.0
Div / share0.160.14
EPS0.490.49
Book value / share7.277.41
Institutional Own % n/a n/a
Avg Daily Volume1.0560006E71.0020125E7

Valuation


BUY. NIKE INC's P/E ratio indicates a discount compared to an average of 26.45 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 7.83 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 5.95. 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 26.38 Peers 26.45   NKE NA Peers 20.70

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 20.72 Peers 23.54   NKE 2.37 Peers 2.30

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.

 

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 7.83 Peers 5.95   NKE 16.75 Peers 8.68

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 2.97 Peers 2.37   NKE 5.80 Peers 8.47

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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