Nike, Inc.(NKE) - Stock detail

Nike, Inc.

US
NKE
NIKE, Inc.(Listing date: 12/05/1980)

Nike, Inc. was incorporated in 1967 under the laws of the State of Oregon. The company's principal business activities are the design, development, and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories, and services. The company is the world's largest seller of athletic footwear and athletic apparel. The company sells its products to retail customers through Nike-owned retail stores and Internet websites, as well as through independent distributors and licensees worldwide. Virtually all of the company's products are manufactured by independent contractors. Almost all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.

AI Value AnalystSell
Overall Rating2.7/10
Generated at:2026-03-04 16:37:10
Analysis based on 5 financial reports from periods: 2025-11-30, 2025-08-31, 2025-05-31, 2025-02-28, 2024-11-30. Stock price data as of 2026-03-05. Data includes TTM metrics and quarterly comparisons.
Overview

Nike, Inc. demonstrates deteriorating fundamentals with declining profitability, compressed margins, and elevated valuation metrics relative to its current financial performance. The company faces structural challenges in maintaining historical profitability levels while trading at premium multiples.

Valuation
2/10
Profitability
2/10
Financial health
4/10
Operation Advice
  • Reduce exposure until fundamentals show sustained improvement or valuation becomes more attractive (P/E below 25x).
  • Consider selling at current price of $58.64 as it exceeds estimated fair value range of $50-$55.

Valuation

P/E TTM
34.83
P/E LYR
28.79
P/B MRQ
6.24
P/S TTM
--
AI Analysis
  • Nike's valuation metrics appear elevated relative to financial performance with P/E (TTM) of 34.83x, forward P/E of 28.79x, P/B of 6.24x, and P/S of 3.60x, suggesting overvaluation by 10-15% based on current fundamentals.
  • P/E (TTM): 34.83x – significantly above historical averages and industry peers, indicating overvaluation unless earnings rebound strongly
  • P/E (Forward): 28.79x – still high, reflecting market expectations of recovery
  • P/B: 6.24x – premium valuation relative to book value, justified only by brand intangible value but not supported by current ROE
  • P/S (TTM): 3.60x – above sector median, suggesting the market prices growth that fundamentals do not currently support
  • Current price of $58.64 exceeds estimated fair value range of $50-$55, suggesting 10-15% overvaluation
Valuation trend

Profitability

ROE TTM
11.13%
Net margin
6.29%
Gross margin
41.36%
Total revenue
24.15B
AI Analysis
  • Nike's profitability has deteriorated significantly with declining margins across key metrics, including net profit margin dropping to 6.29% from 9.25% YoY and gross margin contracting to 41.36% from 44.46% YoY, indicating reduced pricing power and structural challenges.
  • TTM net profit margin fell to 6.29% in Q2 2025, down from 9.25% a year earlier, reflecting cost inflation and potential pricing pressure
  • Gross margin contracted to 41.36% (from 44.46% YoY), indicating reduced pricing power or higher input costs
  • ROE-TTM stands at 11.13% and ROA-TTM at 4.09%, both showing declines from prior periods
  • ROE was 23.29% in annual 2025, showing significant deterioration
  • Q2 2025 net income dropped -31.39% YoY, continuing a trend of negative growth in recent quarters
  • Earnings contraction suggests Nike is facing structural challenges in maintaining historical profitability levels
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--21.16%23.29%5.45%11.13%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue23.94B35.21B46.31B11.72B24.15B

Financial health

Debt/Asset
62.73%
Current ratio
2.06
Quick ratio
1.40
Cash ratio
1.40
AI Analysis
  • Nike demonstrates moderate financial health with strong liquidity (current ratio 2.06, quick ratio 1.40) but elevated leverage (debt-to-equity 62.73%), with recent revenue volatility showing only 0.85% year-over-year growth in Q2 2025.
  • Current ratio of 2.06 and quick ratio of 1.40 indicate sufficient short-term asset coverage for liabilities
  • High debt-to-equity ratio of 62.73% reflects significant debt usage, which may constrain financial flexibility during economic downturns
  • Recent trends show revenue volatility, with Q2 2025 revenue growth of only 0.85% year-over-year, indicating market saturation or competitive pressures
  • Balance sheet remains robust overall, but investors should monitor debt levels and free cash flow sustainability
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset63.02%62.94%63.88%63.93%62.73%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.222.192.212.192.06