Nike (NKE) AI Stock Analysis

• Market Cap: $87.56B
• Dividend Yield: 2.6%
• Average Volume (3M): 22.51M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.82
• Revenue Growth: -7.11%
• EPS Growth: -12.12%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 3.00
• Shares Outstanding: 1,178,102,800
• 10 Day Avg. Volume: 33,777,217
• 30 Day Avg. Volume: 22,505,470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.05
• Price to Cash Flow (P/CF): 24.00
• P/FCF Ratio: 27.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $84.23
• Price Target Upside: 54.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 30

Nike's overall stock score reflects strong financial performance with robust profitability and balance sheet stability. However, recent revenue declines and a bearish technical outlook temper the score. Strategic efforts to reignite growth and a reasonable valuation offset some risks, but significant challenges remain, particularly in Greater China and maintaining gross margins.

Positive Factors

Brand Position

Nike remains the #1 brand in a growing category, with valuation at decade-old levels.

Demand Creation

Demand creation was up big, and is important as Nike needs to reassert itself in the market.

Leadership and Strategy

There is optimism about Nike's turnaround efforts, with the belief that the right leadership can elevate the business.

Negative Factors

Inventory Challenges

Elevated North America inventory delays the full-price representation of the brand.

Revenue Guidance

4Q25 revenues are expected to decline at the low-end of Mid-Teens Y/Y, including negative impacts from FX and unfavorable shipment timing.

Sales and Margins

Recent missteps have led to Nike's sales turning negative and expected to decline.

Nike Business Overview & Revenue Model

Company Description

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.

How the Company Makes Money

Nike makes money primarily through the sale of its athletic footwear, apparel, and equipment. The company's revenue model is centered around a combination of direct-to-consumer sales via its online platforms and physical retail stores, as well as wholesale distribution to third-party retailers. Key revenue streams include sales from its flagship Nike brand, as well as subsidiary brands like Converse and Jordan. Additionally, Nike benefits from strategic partnerships and endorsements with high-profile athletes and sports teams, which enhance its brand visibility and drive consumer demand. The company's earnings are further supported by its investments in marketing and product innovation, which help maintain its competitive edge in the global sportswear market.

Nike Financial Statement Overview

Summary

Nike demonstrates strong financial health across key metrics, with solid profitability, efficient cost management, and balanced leverage. While revenue growth is a concern, margins and cash flow metrics indicate resilience and effective financial management.

Income Statement

Nike's income statement shows robust performance with a gross profit margin of 44.6% TTM and net profit margin of 10% TTM. Despite a slight reduction in revenue from the previous year, margins remain strong, indicating efficient cost management. The EBIT margin of 11.3% TTM and EBITDA margin of 12.1% TTM further confirm this efficiency.

Balance Sheet

Nike maintains a solid balance sheet with a debt-to-equity ratio of 0.86 TTM, reflecting a balanced approach to leverage. The equity ratio stands at 36.9% TTM, indicating a healthy level of equity financing. The return on equity at 34.8% TTM is impressive, showcasing strong profitability relative to shareholder investments.

Cash Flow

Cash flow analysis reveals positive trends, with an operating cash flow to net income ratio of 1.04 TTM, suggesting that net income is well-supported by cash flows. Free cash flow growth is robust, although the free cash flow to net income ratio of 0.94 TTM suggests a slight drop from past performance.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
47.82B	51.36B	51.22B	46.71B	44.54B	37.40B
	Gross Profit
20.95B	22.89B	22.29B	21.48B	19.96B	16.24B
	EBIT
4.97B	6.69B	5.06B	5.83B	6.14B	2.00B
	EBITDA
4.77B	7.16B	6.77B	7.51B	7.73B	4.23B
	Net Income Common Stockholders
4.51B	5.70B	5.07B	6.05B	5.73B	2.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.39B	11.58B	10.68B	13.00B	13.48B	8.79B
	Total Assets
37.79B	38.11B	37.53B	40.32B	37.74B	31.34B
	Total Debt
11.91B	11.95B	12.14B	12.63B	12.81B	13.02B
	Net Debt
3.31B	2.09B	4.70B	4.05B	2.92B	4.67B
	Total Liabilities
23.79B	23.68B	23.53B	25.04B	24.97B	23.29B
	Stockholders Equity
37.79B	14.43B	14.00B	15.28B	12.77B	8.05B
Cash Flow		Free Cash Flow
5.31B	6.62B	4.87B	4.43B	5.96B	1.40B
	Operating Cash Flow
5.85B	7.43B	5.84B	5.19B	6.66B	2.48B
	Investing Cash Flow
-579.00M	894.00M	564.00M	-1.52B	-3.80B	-1.03B
	Financing Cash Flow
-5.60B	-5.89B	-7.45B	-4.84B	-1.46B	2.49B

Nike Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Negative. The current price of 54.39 is below the 20-day moving average (MA) of 63.58, below the 50-day MA of 70.78, and below the 200-day MA of 75.60, indicating a bearish trend. The MACD of -3.06 indicates Positive momentum. The RSI at 30.24 is Neutral, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKE.

Nike Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	76 Outperform	$5.58B	5.98	57.76%	―	3.53%	24.55%
DECK	76 Outperform	$17.61B	17.79	39.80%	―	19.40%	32.70%
BIRK	75 Outperform	$9.03B	37.41	8.52%	―	20.40%	134.09%
SHOO	74 Outperform	$1.61B	9.41	20.20%	3.79%	15.03%	1.51%
SKX	70 Outperform	$7.55B	11.89	15.42%	―	12.11%	19.16%
NKE	66 Neutral	$87.56B	19.74	31.93%	2.60%	-7.11%	-12.12%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%

Nike Corporate Events

Nike Secures New Credit Agreements with Bank of America

On March 7, 2025, Nike, Inc. entered into two significant credit agreements with Bank of America and other financial institutions. The first is a 364-Day Credit Agreement providing up to $1 billion for working capital and general corporate purposes, with the option to increase the facility to $1.5 billion. The second is a Five Year Credit Agreement offering up to $2 billion, extendable to $3 billion, also for general corporate purposes. Both agreements allow for borrowings in multiple currencies and include covenants limiting certain corporate activities. Concurrently, Nike terminated prior credit agreements of similar nature, with no outstanding amounts as of the termination date.