ScoreWhy is NIKE, Inc. ?
1
High Management Efficiency with a high ROE of 37.06%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate 4.78% of over the last 5 years
4
Negative results in May 25
- OPERATING CASH FLOW(Y) Lowest at USD 3,698 MM
- ROCE(HY) Lowest at 23.29%
- INTEREST COVERAGE RATIO(Q) Lowest at 657.58
5
With ROE of 31.97%, it has a very expensive valuation with a 6.62 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -14.09%, its profits have fallen by -14.8%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.09% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to NIKE, Inc. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NIKE, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIKE, Inc.
-43.91%
-0.73
40.25%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.02%
EBIT Growth (5y)
-3.07%
EBIT to Interest (avg)
20.97
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
2.13
Tax Ratio
17.14%
Dividend Payout Ratio
72.55%
Pledged Shares
0
Institutional Holding
90.84%
ROCE (avg)
50.17%
ROE (avg)
37.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
5.40
EV to EBIT
26.58
EV to EBITDA
20.98
EV to Capital Employed
5.34
EV to Sales
1.64
PEG Ratio
NA
Dividend Yield
0.08%
ROCE (Latest)
20.10%
ROE (Latest)
17.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 8.71
INTEREST COVERAGE RATIO(Q)
Highest at 2,720.34
RAW MATERIAL COST(Y)
Fallen by -28.32% (YoY
OPERATING PROFIT(Q)
Highest at USD 1,605 MM
OPERATING PROFIT MARGIN(Q)
Highest at 14.63 %
PRE-TAX PROFIT(Q)
Highest at USD 1,404 MM
NET PROFIT(Q)
Highest at USD 1,129.33 MM
EPS(Q)
Highest at USD 0.72
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 2,868 MM
INTEREST(Q)
At USD 59 MM has Grown at 22.92%
CASH AND EQV(HY)
Lowest at USD 17,084 MM
NET SALES(Q)
Lowest at USD 10,971 MM
Here's what is working for NIKE, Inc.
Interest Coverage Ratio
Highest at 2,720.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At USD 1,129.33 MM has Grown at 82.76%
over average net sales of the previous four periods of USD 617.92 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 8.71 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 1,605 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 14.63 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 1,404 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 1,404 MM has Grown at 77.33%
over average net sales of the previous four periods of USD 791.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,129.33 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.72
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -28.32% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for NIKE, Inc.
Operating Cash Flow
Lowest at USD 2,868 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 59 MM has Grown at 22.92%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Net Sales
Lowest at USD 10,971 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Cash and Eqv
Lowest at USD 17,084 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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