Nike (NKE) AI Stock Analysis

• Market Cap: $108.35B
• Dividend Yield: 2.09%
• Average Volume (3M): 18.33M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.87
• Revenue Growth: -9.74%
• EPS Growth: -42.38%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.14
• Shares Outstanding: 1,178,102,800
• 10 Day Avg. Volume: 29,629,671
• 30 Day Avg. Volume: 18,332,650
• PEG Ratio: -3.35
• Price to Book (P/B): 7.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.02
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 4.46
• 1Y Price Target: $76.70
• Price Target Upside: 0.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 30

• Rating: 69 Neutral
• Price Target: $84.00 ▲(9.96%Upside)

Nike's strong financial health and strategic initiatives are offset by current revenue challenges and valuation concerns. The technical analysis suggests potential short-term volatility, but long-term prospects remain promising due to strategic investments and leadership changes.

Positive Factors

E-commerce and Pricing Strategies

Nike is leveraging its e-commerce channel to enhance pricing strategies.

Financial Performance

The price target for Nike Inc has been raised, indicating confidence in the company's future performance.

Market Position

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

Negative Factors

Profitability

The company is still facing significant earnings pressure and profit guidance for F1Q was lower than consensus.

Revenue and Sales

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

Tariffs and Costs

Tariffs are expected to drive an 'incremental cost increase' of ~$1B.

Nike Business Overview & Revenue Model

Company Description

Nike, Inc. is a leading global designer, marketer, and distributor of athletic footwear, apparel, equipment, and accessories. Headquartered in Beaverton, Oregon, Nike operates in the sportswear and equipment sector, catering to a wide range of sports and fitness activities. With a strong brand presence worldwide, Nike's core products include running shoes, sportswear, and lifestyle apparel, all aimed at enhancing athletic performance and promoting an active lifestyle.

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 demonstrates strong financial health with robust profitability and efficient cash flow management, though recent revenue contraction warrants attention. The balance sheet stability is a significant strength, with no leverage concerns. Continued focus on revenue growth will be critical to maintaining its financial momentum.

Income Statement

Nike's income statement shows a strong gross profit margin of 43.8% for TTM, indicating robust cost management and pricing power. However, a decrease in revenue from the previous fiscal year by 6.9% raises concerns. The net profit margin stands at 9.4%, reflecting solid profitability despite the revenue drop. The EBIT margin of 10.4% further corroborates Nike's operational efficiency.

Balance Sheet

The balance sheet reveals a healthy equity ratio of 100%, indicating strong financial stability and no leverage, as liabilities and equity are balanced. The debt-to-equity ratio is not applicable due to the equity matching assets, highlighting no financial leverage concerns. Return on equity stands at 11.9%, showing efficient use of shareholder funds.

Cash Flow

Nike's cash flow statement indicates a free cash flow growth of 9% from the previous fiscal year, showcasing effective cash management. The operating cash flow to net income ratio is 1.3, suggesting good cash conversion. However, the free cash flow to net income ratio of 1.18 points to some discrepancies between accounting profit and cash generation.

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
EBITDA	4.77B	7.16B	6.77B	7.51B	7.73B	4.23B
Net Income	4.51B	5.70B	5.07B	6.05B	5.73B	2.54B
Balance Sheet
Total Assets	37.79B	38.11B	37.53B	40.32B	37.74B	31.34B
Cash, Cash Equivalents and Short-Term Investments	10.39B	11.58B	10.68B	13.00B	13.48B	8.79B
Total Debt	11.91B	11.95B	12.14B	12.63B	12.81B	13.02B
Total Liabilities	23.79B	23.68B	23.53B	25.04B	24.97B	23.29B
Stockholders Equity	14.01B	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: Positive
• Last Price: 76.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 76.39 is above the 20-day moving average (MA) of 64.01, above the 50-day MA of 61.30, and above the 200-day MA of 70.90, indicating a bullish trend. The MACD of 2.85 indicates Negative momentum. The RSI at 76.58 is Negative, neither overbought nor oversold. The STOCH value of 90.42 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
DECK	79 Outperform	$15.75B	16.77	41.82%	―	16.22%	29.52%
CROX	77 Outperform	$6.01B	6.54	53.70%	―	2.09%	26.18%
BIRK	77 Outperform	$9.21B	34.11	9.35%	―	18.55%	147.70%
SHOO	74 Outperform	$1.83B	10.86	19.51%	3.33%	10.17%	-4.71%
SKX	72 Outperform	$9.44B	15.22	14.67%	―	10.66%	9.44%
NKE	69 Neutral	$108.35B	33.99	23.29%	2.09%	-9.74%	-42.38%
Sector *	65 Neutral	€21.06B	12.80	7.21%	3.45%	0.31%	-40.22%

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.