Nike (NKE) AI Stock Analysis

• Market Cap: $111.34B
• Dividend Yield: 2.57%
• Average Volume (3M): 18.60M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.87
• Revenue Growth: -9.70%
• EPS Growth: -42.38%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.14
• Shares Outstanding: 1,188,015,700
• 10 Day Avg. Volume: 11,828,461
• 30 Day Avg. Volume: 18,599,019
• PEG Ratio: -1.22
• Price to Book (P/B): 8.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.07
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $77.30
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 30

• Rating: 77 Outperform
• Price Target: $83.00 ▲(8.14%Upside)

Nike's strong technical indicators and strategic management initiatives are key positives, offsetting some financial challenges like declining revenue and equity. The company's ability to innovate and adapt to market conditions supports a robust outlook.

Positive Factors

Competitive Advantage

NKE's size and budget should prove a key long-term competitive advantage.

Market Position

Nike is expected to maintain its dominance in the athletic apparel and footwear markets, especially in high-end footwear.

Strategic Partnerships

Nike's latest partnership with Kim Kardashian for 'NikeSKIMS' targets women's fitness and activewear, with the first collection to debut in Spring 2025 and global expansion to follow in 2026.

Negative Factors

Inventory Management

Nike has been struggling with inventory management challenges.

Market Challenges

Nike's revenue in Greater China fell significantly, impacting overall performance.

Market Preferences

Over-reliance on core franchises like AF1, AJ1, and Dunk has contributed to Nike's struggles as consumer preferences shifted toward running and lower-profile silhouettes.

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 primarily generates revenue through the sale of its athletic footwear, apparel, and equipment, which are distributed through a combination of wholesale customers, direct-to-consumer sales, and digital platforms. Wholesale distribution involves selling products to retail partners such as sporting goods stores and department stores, which then sell to consumers. The direct-to-consumer segment includes sales through Nike's own retail stores and e-commerce platforms, which have become increasingly significant. Key revenue streams for Nike also include the Nike Brand, which encompasses its flagship products, and the Converse brand, known for its iconic sneakers. Nike's earnings are further supported by strategic partnerships and endorsements with high-profile athletes and sports teams, which enhance brand visibility and consumer engagement.

Nike Financial Statement Overview

Summary

Nike exhibits strong profitability with solid gross and net profit margins and good cash generation capabilities. However, revenue and stockholders' equity have declined, highlighting potential challenges that need addressing.

Income Statement

Nike's income statement shows strong profitability with a gross profit margin of approximately 42.7% and a net profit margin of 7.0% in TTM (Trailing-Twelve-Months). However, there is a noticeable decline in total revenue year-over-year by around 9.8%, affecting the overall revenue growth negatively. The EBIT and EBITDA margins have also decreased, indicating some operational challenges. Despite these, the company's margins remain strong, suggesting efficient cost management.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio of 0.83, suggesting a balanced financial leverage. The return on equity (ROE) is 24.4%, which shows good profitability relative to shareholder equity. However, there's a slight decrease in stockholders' equity compared to the previous year, which could be a concern if it continues. The equity ratio stands at 36.1%, indicating a solid position but room for improvement in equity compared to total assets.

Cash Flow

The cash flow statement reflects a robust free cash flow of $3.27 billion in TTM with a free cash flow to net income ratio of 1.01, indicating a healthy conversion of profits into cash. However, the free cash flow has decreased compared to the previous year, suggesting potential pressure on cash generation. Operating cash flow to net income ratio is 1.15, underscoring strong cash generation capabilities.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	46.31B	51.36B	51.22B	46.71B	44.54B
Gross Profit	19.79B	22.89B	22.29B	21.48B	19.96B
EBITDA	3.88B	7.16B	6.77B	7.51B	7.73B
Net Income	3.22B	5.70B	5.07B	6.05B	5.73B
Balance Sheet
Total Assets	36.58B	38.11B	37.53B	40.32B	37.74B
Cash, Cash Equivalents and Short-Term Investments	9.15B	11.58B	10.68B	13.00B	13.48B
Total Debt	11.02B	11.95B	12.14B	12.63B	12.81B
Total Liabilities	23.37B	23.68B	23.53B	25.04B	24.97B
Stockholders Equity	13.21B	14.43B	14.00B	15.28B	12.77B
Cash Flow
Free Cash Flow	3.27B	6.62B	4.87B	4.43B	5.96B
Operating Cash Flow	3.70B	7.43B	5.84B	5.19B	6.66B
Investing Cash Flow	-275.00M	894.00M	564.00M	-1.52B	-3.80B
Financing Cash Flow	-5.82B	-5.89B	-7.45B	-4.84B	-1.46B

Nike Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 76.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Positive. The current price of 76.75 is above the 20-day moving average (MA) of 72.59, above the 50-day MA of 65.97, and above the 200-day MA of 70.23, indicating a bullish trend. The MACD of 2.73 indicates Positive momentum. The RSI at 69.42 is Neutral, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NKE.

Nike Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHOO	79 Outperform	$1.97B	11.70	19.51%	3.10%	10.17%	-4.71%
NKE	77 Outperform	$111.34B	34.84	23.29%	2.57%	-9.70%	-42.38%
DECK	76 Outperform	$15.79B	16.68	41.82%	―	16.22%	29.52%
CROX	74 Outperform	$5.96B	6.52	53.70%	―	2.09%	26.18%
BIRK	73 Outperform	$9.34B	34.59	9.35%	―	18.55%	147.70%
SKX	72 Outperform	$9.46B	15.21	14.67%	―	10.66%	9.44%
Sector *	63 Neutral	$17.14B	11.11	-7.24%	3.14%	1.68%	-25.43%

Nike Corporate Events

Nike Nominates Jørgen Vig Knudstorp to Board

On June 24, 2025, NIKE, Inc. announced the nomination of Jørgen Vig Knudstorp for election to its Board of Directors at the upcoming annual meeting on September 9, 2025. Knudstorp, with extensive experience in brand and digital marketing, strategy, and consumer products from his tenure at LEGO, is expected to contribute significantly to NIKE’s growth and brand storytelling initiatives.

The most recent analyst rating on (NKE) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.

Nike Board Member Cathleen Benko Announces Retirement

On June 13, 2025, Cathleen Benko announced her retirement from Nike‘s Board of Directors, effective at the company’s 2025 annual shareholder meeting. Her departure is amicable, with no disagreements with the company, and she is commended for her contributions over the past seven years.

The most recent analyst rating on (NKE) stock is a Hold with a $71.00 price target. To see the full list of analyst forecasts on Nike stock, see the NKE Stock Forecast page.

Nike Announces Major Leadership Restructuring for Growth

On May 5, 2025, Nike, Inc. announced significant changes to its Senior Leadership Team to support its ‘Win Now’ action plan and future growth. The company eliminated the President, Consumer, Product & Brand role, leading to Heidi O’Neill’s retirement after 26 years. The leadership restructuring includes Amy Montagne as President, Phil McCartney as EVP, Chief Innovation, Design & Product Officer, Nicole Graham as EVP, Chief Marketing Officer, and Tom Clarke as Chief Growth Initiatives Officer. These changes aim to enhance Nike’s focus on consumer engagement, innovation, and brand distinction, positioning the company for continued success.