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 -16.75%, its profits have fallen by -14.8%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -16.75% 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 hold?
- 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIKE, Inc.
-16.18%
-0.79
39.95%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.40%
EBIT Growth (5y)
4.78%
EBIT to Interest (avg)
20.97
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
2.14
Tax Ratio
17.14%
Dividend Payout Ratio
72.55%
Pledged Shares
0
Institutional Holding
84.76%
ROCE (avg)
50.17%
ROE (avg)
37.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
6.62
EV to EBIT
19.29
EV to EBITDA
16.56
EV to Capital Employed
7.03
EV to Sales
1.91
PEG Ratio
NA
Dividend Yield
0.07%
ROCE (Latest)
36.44%
ROE (Latest)
31.97%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
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
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 10.15
DIVIDEND PAYOUT RATIO(Y)
Highest at 280.11%
-27What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 3,698 MM
ROCE(HY)
Lowest at 23.29%
INTEREST COVERAGE RATIO(Q)
Lowest at 657.58
RAW MATERIAL COST(Y)
Grown by 11.04% (YoY
NET SALES(Q)
Lowest at USD 11,120 MM
OPERATING PROFIT(Q)
Lowest at USD 434 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 3.9 %
PRE-TAX PROFIT(Q)
Lowest at USD 325 MM
NET PROFIT(Q)
Lowest at USD 215.64 MM
EPS(Q)
Lowest at USD 0.14
Here's what is working for NIKE, Inc.
Dividend per share
Highest at USD 10.15 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 280.11%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for NIKE, Inc.
Pre-Tax Profit
At USD 325 MM has Fallen at -75.28%
over average net sales of the previous four periods of USD 1,314.75 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 215.64 MM has Fallen at -80.74%
over average net sales of the previous four periods of USD 1,119.63 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 657.58
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 3,698 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Net Sales
Lowest at USD 11,120 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 434 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 3.9 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 325 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 215.64 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.14
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 11.04% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.49 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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