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 Rating3.3/10
Generated at:2026-04-17 17:42:31
Analysis based on 5 financial reports from periods: 2026-02-28, 2025-11-30, 2025-08-31, 2025-05-31, and 2025-02-28. Price data as of 2026-04-17 close. Data includes trailing twelve months (TTM) metrics and quarterly comparisons. Analysis covers financial condition, profitability, and valuation metrics.
Overview

Nike, Inc. is a global leader in athletic footwear and apparel with strong brand equity and global scale, but is currently facing significant profitability pressure and stagnant revenue growth. The company maintains strong liquidity but has elevated financial leverage, and its current valuation appears high relative to deteriorating fundamentals.

Valuation
2/10
Profitability
3/10
Financial health
5/10
Operation Advice
  • Hold existing positions but do not initiate new buys at current price levels.
  • Monitor upcoming earnings reports for signs of margin stabilization and return to positive earnings growth.
  • Consider entry points closer to the fundamental price range of $33.66-$38.25 if fundamentals improve.

Valuation

P/E TTM
30.30
P/E LYR
28.79
P/B MRQ
4.84
P/S TTM
--
AI Analysis
  • Nike appears overvalued with a P/E ratio near 30 despite declining earnings, suggesting the market is pricing based on brand strength rather than current fundamentals. A more reasonable P/E range of 22-25 implies a fundamental price range of $33.66 to $38.25, significantly below the current price of $46.03.
  • Current price is $46.03 as of 2026-04-17 close
  • P/E (TTM) is 30.08, P/E (Forward/Dynamic) is 28.79
  • P/B ratio is 4.80, indicating significant premium to book value
  • P/S (TTM) ratio is 1.47, which appears more reasonable but must be viewed in context of falling margins
  • A P/E ratio near 30 is high for a company experiencing profit declines
  • The market may still be pricing Nike based on its brand strength and historical performance rather than current deteriorating fundamentals
  • Given high P/E multiple coupled with declining earnings, the stock appears overvalued based on current fundamentals
  • A more reasonable P/E multiple for a company in transitional phase with negative earnings growth would be lower (22-25 range)
  • Applying P/E range of 22-25 suggests fundamental price range of $33.66 to $38.25
  • 12-month fundamental target price would be approximately $36.00 at midpoint of this range
Valuation trend

Profitability

ROE TTM
17.07%
Net margin
5.76%
Gross margin
40.98%
Total revenue
35.43B
AI Analysis
  • Nike faces significant profitability headwinds with net margin contraction from 8.54% to 5.76%, stagnant revenue growth of only 0.61% year-over-year, and consistent double-digit declines in net profit across all comparative periods.
  • Trailing Twelve Months Return on Equity (ROE) of 17.07% remains respectable, reflecting efficient use of shareholder capital
  • TTM Return on Assets (ROA) of 6.23% is more modest, weighed down by large asset base and recent profit declines
  • Net margin has contracted from 8.54% in Q3 2025 to 5.76% in Q3 2026
  • Gross margins have remained relatively stable around 41-43%
  • Significant drop in net income and net margin points to rising operating expenses or other non-operating costs eroding profits
  • Revenue growth has stagnated, with latest quarter showing only 0.61% year-over-year growth
  • Consistent double-digit decline in net profit across all provided comparative periods
  • Current challenges are not merely top-line issues but are severely impacting the bottom line
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 current ratio of 2.14 and quick ratio of 1.45, but has elevated leverage with Debt-to-Assets ratio of 61.98% and faces profitability pressure with sharp year-over-year decline in net income of -32.21% in Q3 2026.
  • Current ratio of 2.14 and quick ratio of 1.45 indicate more than sufficient short-term assets to cover short-term liabilities
  • Strong liquidity provides good operational flexibility
  • Debt-to-Assets ratio of 61.98% signifies high degree of financial leverage
  • High leverage is common for large corporations but increases financial risk, especially in rising interest rate environment or during economic downturns
  • Most recent quarterly data (Q3 2026) shows sharp year-over-year decline in Net Income attributable to shareholders of -32.21%
  • Profitability pressure trend is consistent across recent quarters, indicating sustained pressure on bottom-line growth
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset62.94%63.88%63.93%62.73%61.98%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.192.212.192.062.14