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 AnalystHold
Overall Rating3.7/10
Generated at:2026-06-03 17:40:40
Analysis based on 5 financial reports covering periods: 2026-02-28, 2025-11-30, 2025-08-31, 2025-05-31, and 2025-02-28. Market price data as of 2026-06-04. 60-day trading range data provided. All financial metrics calculated from reported company data.
Overview

Nike, Inc. is a global leader in athletic footwear and apparel with strong brand recognition and market position. However, the company is currently facing significant fundamental headwinds including stagnating revenue growth and sharply declining profitability, which makes its current high valuation multiples difficult to justify. The company maintains good financial liquidity but carries moderate leverage.

Valuation
3/10
Profitability
2/10
Financial health
6/10
Operation Advice
  • Hold existing positions, monitor upcoming quarterly results for signs of margin stabilization or strategic success, and wait for a more compelling valuation (target price range $38.00 - $45.00) before considering adding to positions.
  • The current price of $43.81 sits at the top of the reasonable valuation range.

Valuation

P/E TTM
28.78
P/E LYR
28.79
P/B MRQ
4.60
P/S TTM
--
AI Analysis
  • Nike appears overvalued based on current earnings, with a high P/E ratio of 28.78 and P/B ratio of 4.60. The stock has experienced a significant price decline from highs near $57.60 to current levels around $43.81. A more reasonable fundamental value based on earnings contraction would be in the $33.44-$38.00 range, though the brand strength may support a premium.
  • Current market price is $43.81 as of 2026-06-04
  • Trailing Twelve Months P/E ratio is 28.78, which is high for a company experiencing profit contraction
  • Price-to-Book ratio is 4.60, indicating the stock trades at a substantial premium to book value
  • Price-to-Sales ratio is 1.39, which is moderate compared to P/E and P/B ratios
  • The 60-day trading range shows a low near $41.35 and a high near $57.60, with a significant decline around April 1, 2026
  • The stock appears overvalued on an earnings basis given the high P/E multiple in face of declining profits
  • A more reasonable P/E for a company with negative earnings growth could be in the low 20s
  • Using TTM EPS of approximately $1.52, a P/E of 22 suggests fundamental value around $33.44
  • A P/E of 25 suggests value around $38.00
  • Considering Nike's brand and market position, a price range of $38.00 - $45.00 represents a more balanced valuation scenario
Valuation trend

Profitability

ROE TTM
17.07%
Net margin
5.76%
Gross margin
40.98%
Total revenue
35.43B
AI Analysis
  • Profitability trends are concerning with clear signs of pressure. Revenue growth has stagnated with very low single-digit growth or declines, while both gross and net profit margins are under significant pressure with severe double-digit declines in net income.
  • Revenue growth has stagnated, with the last five reported periods showing very low single-digit growth or declines
  • Q3 2026 revenue showed +0.61% year-over-year growth
  • Annual 2025 revenue declined -9.84% year-over-year
  • Gross profit has declined year-over-year in the last five consecutive reports
  • Q3 2026 gross profit declined -5.24% year-over-year
  • Net Income has experienced severe double-digit declines
  • Q3 2026 Net Income declined -32.21% year-over-year
  • Annual 2025 Net Income declined -43.53% year-over-year
  • Return on Equity (ROE-TTM) is 17.07% and Return on Assets (ROA-TTM) is 6.23%, which remain respectable
  • Sharp quarterly declines in ROE (from 21.16% in Q3 2025 to 14.94% in Q3 2026) signal deteriorating efficiency in generating profits from shareholder equity
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--23.29%5.45%11.13%17.07%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue35.21B46.31B11.72B24.15B35.43B

Financial health

Debt/Asset
61.98%
Current ratio
2.14
Quick ratio
1.45
Cash ratio
1.45
AI Analysis
  • Nike shows strong liquidity with a current ratio of 2.14 and quick ratio of 1.45, indicating good short-term financial flexibility. However, the company has moderate leverage with a debt-to-asset ratio of 61.98%, which introduces financial risk.
  • Current ratio is 2.14, indicating Nike has ample short-term assets to cover short-term liabilities
  • Quick ratio is 1.45, suggesting good operational liquidity and financial flexibility
  • Debt-to-asset ratio is 61.98%, which is moderately high
  • This level of leverage is not uncommon for large, stable corporations but does introduce financial risk
  • The leverage risk is particularly relevant in a rising interest rate environment or during economic downturns
  • The ratio indicates that a significant portion of the company's assets are financed by debt
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset62.94%63.88%63.93%62.73%61.98%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.192.212.192.062.14