Nike (NKE) AI Stock Analysis

• Market Cap: $105.27B
• Dividend Yield: 2.25%
• Average Volume (3M): 11.01M
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.86
• Revenue Growth: -9.70%
• EPS Growth: -42.38%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.14
• Shares Outstanding: 1,188,015,700
• 10 Day Avg. Volume: 13,431,736
• 30 Day Avg. Volume: 11,012,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: 19.51
• 1Y Price Target: $81.24
• Price Target Upside: 14.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28

• Rating: 66 Neutral
• Price Target: $78.00 ▲(9.52% Upside)

Nike's overall stock score reflects a mix of strong financial management and strategic initiatives against a backdrop of current challenges. The company's profitability and cash flow are robust, but technical indicators and valuation suggest caution. Earnings call insights provide a balanced view of near-term pressures and long-term growth potential.

Positive Factors

Strategic Realignment

Nike's strategic realignment focuses on innovation and growth, aiming to enhance brand positioning and drive long-term success across its key brands.

Partnership with Amazon

The partnership with Amazon expands Nike's distribution network, increasing brand visibility and potentially boosting sales through a major e-commerce platform.

Innovative Product Launches

Successful product launches like the Vomero 18 highlight Nike's innovation capabilities, driving consumer interest and supporting long-term revenue growth.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in sales performance, potentially impacting the company's ability to sustain growth in the near term.

Gross Margin Pressure

Decreasing gross margins suggest cost pressures and pricing challenges, which could affect profitability if not managed effectively.

Impact of New Tariffs

New tariffs add significant cost pressures, potentially squeezing margins and affecting competitive pricing, impacting long-term financial performance.

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 generates revenue primarily through the sale of its footwear, apparel, and equipment. The company's revenue model is driven by a combination of wholesale distribution to retailers and direct-to-consumer sales through its own retail stores and e-commerce platforms. Key revenue streams include the sale of performance and lifestyle products, with particular strength in athletic footwear. Nike also benefits from significant partnerships, including collaborations with professional athletes and sports teams, which enhance brand visibility and drive sales. Additionally, the company has invested heavily in digital transformation, improving its online presence and customer engagement, contributing to a growing portion of its revenue from e-commerce. Lastly, licensing and royalties from the use of its brand and trademarks further bolster its earnings.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.38B	46.31B	51.39B	51.19B	46.79B	44.49B
Gross Profit	19.67B	19.79B	22.62B	21.68B	21.58B	19.91B
EBITDA	4.68B	3.88B	7.76B	7.19B	7.66B	7.69B
Net Income	3.22B	3.22B	5.70B	5.07B	6.05B	5.73B
Balance Sheet
Total Assets	36.58B	36.58B	38.11B	37.53B	40.32B	37.74B
Cash, Cash Equivalents and Short-Term Investments	9.15B	9.15B	11.58B	10.68B	13.00B	13.48B
Total Debt	11.02B	11.02B	11.95B	12.14B	12.63B	12.81B
Total Liabilities	23.37B	23.37B	23.68B	23.53B	25.04B	24.97B
Stockholders Equity	13.21B	13.21B	14.43B	14.00B	15.28B	12.77B
Cash Flow
Free Cash Flow	3.27B	3.27B	6.62B	4.87B	4.43B	5.96B
Operating Cash Flow	3.70B	3.70B	7.43B	5.84B	5.19B	6.66B
Investing Cash Flow	-275.00M	-275.00M	894.00M	564.00M	-1.52B	-3.80B
Financing Cash Flow	-5.82B	-5.82B	-5.89B	-7.45B	-4.84B	-1.46B

Nike Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 71.22 is below the 20-day moving average (MA) of 73.71, below the 50-day MA of 74.74, and above the 200-day MA of 69.39, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 15.75 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
BIRK	78 Outperform	8.34B	25.24	11.66%	―	18.66%	183.98%
DECK	71 Outperform	16.50B	17.08	40.11%	―	15.43%	24.20%
WWW	69 Neutral	2.30B	28.04	17.84%	1.41%	-2.83%	―
CROX	68 Neutral	4.23B	20.81	16.64%	―	2.04%	-71.52%
NKE	66 Neutral	$105.27B	32.94	23.29%	2.25%	-9.70%	-42.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nike Corporate Events

Nike Adjusts Product Purchase Obligations in Annual Report

Nike, Inc. has corrected an error in its Annual Report regarding product purchase obligations as of May 31, 2025. The obligations were overstated and have been adjusted to approximately $5 billion, all payable within the next 12 months, impacting the company’s financial disclosures.

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.

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.