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 Rating3.3/10
Generated at:2026-06-11 17:41:27
Analysis based on real financial data from 5 quarterly reports: 2026-02-28, 2025-11-30, 2025-08-31, 2025-05-31, and 2025-02-28. Stock price data as of 2026-06-12 with 60-day trading range analysis. Data includes comprehensive financial metrics for fundamental analysis.
Overview

Nike, Inc. (NKE) is a global leader in athletic footwear and apparel with strong brand recognition. However, fundamental analysis reveals concerning trends including stagnant revenue growth, significant profit margin compression, and declining net income. While the company maintains strong liquidity, its elevated debt levels and premium valuation create an unfavorable risk/reward profile at the current stock price.

Valuation
2/10
Profitability
2/10
Financial health
6/10
Operation Advice
  • Based on fundamental analysis, Nike appears overvalued at the current price of $45.96.
  • The analysis suggests a reasonable valuation range of $38.00 - $42.00.
  • Investors should consider selling or avoiding new positions until there is clear evidence of a turnaround in profitability and resumption of healthy revenue growth.
  • The stock's premium P/E multiple of ~29x is difficult to justify given the current fundamental challenges.

Valuation

P/E TTM
28.93
P/E LYR
28.79
P/B MRQ
4.62
P/S TTM
--
AI Analysis
  • Valuation analysis indicates Nike is overvalued with a premium P/E multiple of 28.93 that is difficult to justify given stagnant revenue growth and declining earnings. The current price of $45.96 is above the reasonable valuation range of $38.00 - $42.00, suggesting the stock is priced on brand strength rather than current earnings power.
  • The current stock price is $45.96, trading in the upper half of the recent 60-day range of approximately $41.35 to $47.65
  • The Trailing P/E (PE-TTM) is 28.93, representing a premium valuation multiple
  • The Price-to-Book (PB) ratio is 4.62, significantly above 1, reflecting strong brand intangible assets
  • The Price-to-Sales (PS-TTM) ratio is 1.46
  • The premium P/E multiple of ~29x is difficult to justify given the current fundamental backdrop of stagnant revenue growth and sharply declining earnings
  • Historically, such a multiple would imply expectations of strong future growth, which the recent financial data does not support
  • The stock appears to be valued on its brand strength and market position rather than its current earnings power
  • A reasonable valuation range, considering a normalization of the P/E multiple to reflect growth challenges, could be $38.00 - $42.00
  • The current price of $45.96 is overvalued from a fundamental perspective
Valuation trend

Profitability

ROE TTM
17.07%
Net margin
5.76%
Gross margin
40.98%
Total revenue
35.43B
AI Analysis
  • Profitability analysis shows concerning trends with revenue growth nearly stalled at 0.61% year-over-year, net income declining by -32.21%, and significant margin compression. Gross margin fell from 43.51% to 40.98% while net margin declined from 8.54% to 5.76%, indicating cost pressures and competitive challenges.
  • The most recent quarterly report (2026-02-28, Q3) shows revenue growth of only 0.61% year-over-year
  • Net Income declined by -32.21% year-over-year
  • Gross Profit fell by -5.24% year-over-year
  • This pattern of declining profits on nearly flat sales is consistent across the last several reported periods
  • The Q3 Gross Margin of 40.98% has compressed compared to 43.51% from the same period a year prior
  • The Q3 Net Margin of 5.76% has compressed compared to 8.54% from the same period a year prior
  • Margin compression points to cost pressures (e.g., input costs, freight) and potentially competitive or discounting pressures
  • The Return on Equity (ROE-TTM) of 17.07% remains respectable, reflecting efficient use of shareholder capital despite earnings decline
  • The Return on Assets (ROA-TTM) of 6.23% is adequate
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
  • Financial condition assessment shows strong liquidity with a current ratio of 2.14 and quick ratio of 1.45, but elevated leverage with a debt-to-asset ratio of 61.98% that introduces financial risk, especially in higher interest rate environments or economic downturns.
  • The current ratio of 2.14 is strong, indicating Nike has more than sufficient short-term assets to cover short-term liabilities
  • The quick ratio of 1.45 is strong, suggesting robust liquidity position
  • The debt-to-asset ratio of 61.98% is elevated
  • This level of leverage is common for large, cash-generative companies but does introduce financial risk
  • The elevated leverage warrants monitoring, especially in a higher interest rate environment or during an economic downturn
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset62.94%63.88%63.93%62.73%61.98%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.192.212.192.062.14