Nike Inc.
Find Ratings ReportsNIKE INC's gross profit margin for the second quarter of its fiscal year 2023 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 strong liquidity. Currently, the Quick Ratio is 1.63 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.
During the same period, stockholders' equity ("net worth") has decreased by 7.37% 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 | Q2 FY23 | Q2 FY22 |
---|---|---|
Net Sales ($mil) | 13388.0 | 13315.0 |
EBITDA ($mil) | 2016.0 | 1760.0 |
EBIT ($mil) | 1825.0 | 1587.0 |
Net Income ($mil) | 1578.0 | 1331.0 |
Balance Sheet | Q2 FY23 | Q2 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 9927.0 | 10621.0 |
Total Assets ($mil) | 37203.0 | 39647.0 |
Total Debt ($mil) | 12177.0 | 12525.0 |
Equity ($mil) | 14146.0 | 15272.0 |
Profitability | Q2 FY23 | Q2 FY22 |
---|---|---|
Gross Profit Margin | 46.03 | 44.19 |
EBITDA Margin | 15.05 | 13.21 |
Operating Margin | 13.63 | 11.92 |
Sales Turnover | 1.39 | 1.24 |
Return on Assets | 14.24 | 14.21 |
Return on Equity | 37.46 | 36.89 |
Debt | Q2 FY23 | Q2 FY22 |
---|---|---|
Current Ratio | 2.74 | 2.69 |
Debt/Capital | 0.46 | 0.45 |
Interest Expense | 70.0 | 65.0 |
Interest Coverage | 26.07 | 24.42 |
Share Data | Q2 FY23 | Q2 FY22 |
---|---|---|
Shares outstanding (mil) | 1517.0 | 1550.0 |
Div / share | 0.34 | 0.31 |
EPS | 1.03 | 0.85 |
Book value / share | 9.33 | 9.85 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 9333471.0 | 8671566.0 |
HOLD. NIKE INC's P/E ratio indicates a discount compared to an average of 31.14 for the Leather and Allied Product Manufacturing subsector and a value on par with the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 10.75 indicates a significant premium versus the S&P 500 average of 4.68 and a premium versus the subsector average of 9.26. The current price-to-sales ratio is above the S&P 500 average, but below the subsector average. The valuation analysis reveals that, NIKE INC seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NKE 29.32 | Peers 31.14 | NKE 21.11 | Peers 19.85 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NKE 23.79 | Peers 23.39 | NKE 2.67 | Peers 2.17 | |||||||||||||||||||||
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. |
Premium. 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 premium to its peers. |
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Price/Book |
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Earnings Growth |
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NKE 10.75 | Peers 9.26 | NKE -3.67 | Peers 13.36 | |||||||||||||||||||||
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 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. |
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Price/Sales |
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Sales Growth |
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NKE 2.95 | Peers 3.18 | NKE 4.95 | Peers 8.95 | |||||||||||||||||||||
Average. 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 valuation on par with 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. |
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