Nike (NKE) AI Stock Analysis

• Market Cap: $86.79B
• Dividend Yield: 2.74%
• Average Volume (3M): 13.52M
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.88
• Revenue Growth: -7.07%
• EPS Growth: -44.29%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.53
• Shares Outstanding: 1,189,313,600
• 10 Day Avg. Volume: 13,985,944
• 30 Day Avg. Volume: 13,519,235
• PEG Ratio: -0.66
• Price to Book (P/B): 6.81
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 27.53
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 6.07
• Enterprise Value/Ebitda: 27.56
• 1Y Price Target: $80.50
• Price Target Upside: 37.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 29
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $71.00 ▲(20.93% Upside)

Nike's overall stock score reflects a combination of strong operational capabilities and strategic growth initiatives, particularly in North America. However, challenges in maintaining revenue growth, declining profitability margins, and valuation concerns weigh on the score. The company's focus on innovation and strategic investments offers potential for future growth, but regional challenges and cost pressures remain significant risks.

Positive Factors

North America Growth

Strong growth in North America, particularly in wholesale, indicates robust market demand and effective sales strategies, supporting long-term revenue stability.

New Product Innovations

Innovations like NIKE Mind and Aerofit enhance product differentiation, potentially increasing market share and customer loyalty over time.

Leadership Changes

Leadership restructuring aims to improve operational efficiency and market strategy, potentially strengthening competitive positioning and future growth.

Negative Factors

Greater China Challenges

Continued revenue decline in Greater China presents a significant challenge, potentially impacting overall growth and profitability if not addressed.

Gross Margin Decline

A decline in gross margins due to higher costs can pressure profitability, necessitating cost management and pricing strategies to sustain margins.

NIKE Direct Decline

Declining NIKE Direct and Digital sales suggest challenges in the direct-to-consumer model, potentially affecting long-term revenue and brand engagement.

Nike Business Overview & Revenue Model

Company Description

Nike, Inc. is a global leader in the design, development, manufacturing, and marketing of athletic footwear, apparel, equipment, and accessories. Founded in 1964, the company operates in multiple sectors including sports, fitness, and lifestyle, catering to a diverse customer base ranging from professional athletes to casual consumers. Nike's core products include running shoes, basketball sneakers, sportswear, and equipment, all marketed under its iconic swoosh logo and various branding lines such as Jordan and Converse.

How the Company Makes Money

Nike generates revenue primarily through the sale of footwear, apparel, and equipment. The company operates a multi-channel distribution model, including direct-to-consumer (DTC) sales through its retail stores and e-commerce platforms, as well as wholesale partnerships with third-party retailers. Key revenue streams include athletic footwear, which accounts for a significant portion of sales, and sportswear, which includes apparel and accessories. Nike's partnerships with professional athletes and sports teams enhance brand visibility and drive consumer engagement. Additionally, the company's investment in digital platforms and technology has allowed it to enhance its DTC sales, expand its customer base, and increase overall profitability.

Nike Financial Statement Overview

Summary

Nike shows strong operational capabilities with a robust gross profit margin and effective cash management. However, recent declines in revenue growth and profitability margins highlight potential challenges in maintaining growth and controlling costs. The balance sheet remains stable with moderate leverage, but declining return on equity suggests reduced efficiency in generating returns for shareholders.

Income Statement

Nike's income statement shows a solid gross profit margin of 41.75% TTM, indicating efficient production and sales processes. However, the net profit margin has decreased to 6.23% TTM from 11.09% in the previous year, reflecting increased expenses or pricing pressures. Revenue growth has been volatile, with a recent decline of 23.7% TTM, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also decreased, indicating potential operational inefficiencies or increased costs.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.82 TTM, showing moderate leverage. Return on equity has decreased to 21.16% TTM from 39.57% in 2022, indicating reduced profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.93% TTM, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio is 0.34 TTM, suggesting that cash generation is not fully aligned with reported earnings. However, the free cash flow to net income ratio remains strong at 88.37%, indicating effective cash management relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.44B	46.31B	51.36B	51.22B	46.71B	44.54B
Gross Profit	19.48B	19.79B	22.89B	22.29B	21.48B	19.96B
EBITDA	4.29B	4.51B	7.16B	6.77B	7.51B	7.73B
Net Income	2.90B	3.22B	5.70B	5.07B	6.05B	5.73B
Balance Sheet
Total Assets	37.33B	36.58B	38.11B	37.53B	40.32B	37.74B
Cash, Cash Equivalents and Short-Term Investments	8.57B	9.15B	11.58B	10.68B	13.00B	13.48B
Total Debt	11.06B	11.02B	11.95B	12.14B	12.63B	12.81B
Total Liabilities	23.87B	23.37B	23.68B	23.53B	25.04B	24.97B
Stockholders Equity	13.47B	13.21B	14.43B	14.00B	15.28B	12.77B
Cash Flow
Free Cash Flow	3.01B	3.27B	6.62B	4.87B	4.43B	5.96B
Operating Cash Flow	3.53B	3.70B	7.43B	5.84B	5.19B	6.66B
Investing Cash Flow	-168.00M	-275.00M	894.00M	564.00M	-1.52B	-3.80B
Financing Cash Flow	-4.80B	-5.82B	-5.89B	-7.45B	-4.84B	-1.46B

Nike Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 58.71 is below the 20-day moving average (MA) of 64.78, below the 50-day MA of 64.75, and below the 200-day MA of 66.48, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.57 is Neutral, 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
DECK	79 Outperform	$14.50B	14.75	43.31%	―	12.38%	18.43%
ONON	79 Outperform	$16.04B	60.10	15.38%	―	38.94%	81.82%
BIRK	71 Outperform	$7.83B	20.41	12.67%	―	18.86%	88.29%
NKE	67 Neutral	$86.79B	34.52	17.95%	2.74%	-7.07%	-44.29%
CROX	63 Neutral	$4.64B	29.12	11.82%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nike Corporate Events

Nike Announces Leadership Changes for Operational Efficiency

On December 2, 2025, NIKE, Inc. announced significant organizational changes to its senior leadership team to enhance its operational efficiency and market strategy. Venkatesh Alagirisamy was appointed as the Executive Vice President, Chief Operating Officer, effective December 8, 2025, while the roles of Chief Commercial Officer and Chief Technology Officer were eliminated, resulting in the departure of Craig Williams and Dr. Muge Dogan, respectively. These changes aim to integrate technology more seamlessly into operations and strengthen the company’s connection with consumers, positioning NIKE for growth and enhancing its competitive edge in the marketplace.