A Business at a Glance
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NIKE, Inc.
NKE
$62.1B
Mkt Cap
$41.70
+1.73%
NIKE, Inc. (NKE) has a current P/E ratio of 27.4, compared to its historical median P/E of 29.3. The stock is currently considered Fair based on its historical valuation range.
NIKE, Inc. (NKE) has a 5-year average return on invested capital (ROIC) of 40.5%. This indicates strong capital allocation and a potential competitive advantage.
NIKE, Inc. (NKE) has a market capitalization of $61.7B. It is classified as a large-cap stock.
Yes, NIKE, Inc. (NKE) pays a dividend with a trailing twelve-month yield of 3.87%. The company also returns capital through share buybacks, with a buyback yield of 0.56%.
Based on historical P/E analysis, NIKE, Inc. (NKE) appears fair. The current P/E of 27.4 is 6% below its historical median of 29.3. The estimated fair value CAGR (P/E method) is 3.9%.
NIKE, Inc. (NKE) operates in the Rubber & Plastics Footwear industry, within the Materials sector.
NIKE, Inc. (NKE) reported annual revenue of $46.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Nike, Inc. is the world's largest seller of athletic footwear and apparel, designing, developing, and marketing products under the NIKE, Jordan, and Converse brands for athletic and casual use. The company operates through a diversified distribution model combining NIKE Direct (owned retail stores and digital platforms in over 40 countries) and wholesale accounts with independent distributors, licensees, and sales representatives globally, with approximately 43% of revenues from the United States and 57% from international markets. Nearly all footwear and apparel products are manufactured by independent contract manufacturers outside the United States—primarily in Vietnam, Indonesia, and China for footwear, and Vietnam, China, and Cambodia for apparel—while equipment products are made both domestically and abroad, with the company supplied by 184 strategic Tier 2 material suppliers as of May 2025. Nike's competitive moat rests on continuous innovation in product design and manufacturing (including proprietary technologies such as Nike Air, Zoom, Dri-FIT, and Flyknit), deep athlete partnerships and research committees, and brand strength across multiple sports and consumer segments, complemented by interactive digital services and consumer experiences. The company serves diverse customer bases including athletic specialty retailers, department stores, and direct consumers, with no single customer representing 10% or more of consolidated revenues, and operates 376 retail stores in the United States and 658 outside the United States as of fiscal 2025.
【Marketplace stabilization and margin recovery】 Management expects to complete "Win Now" actions by the end of calendar 2026, with gross margin expansion beginning in Q1 of fiscal 2027 and continuing through fiscal 2028 as the company reduces promotional activity and improves full-price sell-through. The company anticipates revenue headwinds to persist in the near term due to intentional reductions in sell-in to align with full-price demand and marketplace cleanup, particularly in Greater China and Converse, though profitability is expected to bottom before sales recover. Operating leverage and cost discipline are expected to drive earnings recovery, with management targeting a return to double-digit margins over the medium term as tariff impacts moderate and the benefits of operational restructuring annualize. The company remains focused on scaling its Sport Offense across Running, Training, Basketball, and ACG, with Sportswear and Jordan streetwear expected to remain negative through the first half of fiscal 2027 before improving in the back half.
| Metric | Target | Period |
|---|---|---|
| Revenue | down low to mid single digits | Q1 FY2027 |
| Gross margin | slightly positive | Q1 FY2027 |
| Tax rate | low 20% range | FY2027 |
| Revenue | down low to mid single digits | Q4 FY2026 through Q2 FY2027 (three-quarter period) |
| Earnings per share | flattish | Q4 FY2026 through Q2 FY2027 (three-quarter period) |
Revenue (Q1 FY2027): “Specifically for the first quarter, we expect reported revenues to be down low to mid single digits”
Gross margin (Q1 FY2027): “We expect gross margin in Q1 to be slightly positive.”
Tax rate (FY2027): “We expect our full year tax rate to be in the low 20% range.”
Revenue (Q4 FY2026 through Q2 FY2027 (three-quarter period)): “We now expect revenue to be down low to mid single digits”
Earnings per share (Q4 FY2026 through Q2 FY2027 (three-quarter period)): “We reiterate our expectation for earnings to be flattish over that time period, excluding the benefit from tariff recovery.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 46.5B | 46.3B | 51.4B | 51.2B | 46.7B | 44.5B |
| Net Income | 2.3B | 3.2B | 5.7B | 5.1B | 6.0B | 5.7B |
| EPS | $1.52 | $2.16 | $3.73 | $3.23 | $3.75 | $3.56 |
| Free Cash Flow | 1.0B | 3.3B | 6.6B | 4.9B | 4.4B | 6.0B |
| ROIC | 0.0% | 27.0% | 41.6% | 34.4% | 44.4% | 55.2% |
| Gross Margin | 40.8% | 42.7% | 44.6% | 43.5% | 46.0% | 44.8% |
| Debt/Equity | 0.57 | 0.60 | 0.62 | 0.64 | 0.62 | 0.74 |
| Dividends/Share | $1.61 | $1.57 | $1.45 | $1.33 | $1.19 | $1.07 |
| Operating Income | 0 | 4.3B | 7.1B | 6.5B | 6.9B | 7.0B |
| Operating Margin | 0.0% | 9.2% | 13.8% | 12.8% | 14.9% | 15.6% |
| ROE | 16.0% | 23.3% | 40.1% | 34.6% | 43.1% | 55.0% |
| Shares Outstanding | 1,480M | 1,490M | 1,528M | 1,570M | 1,612M | 1,609M |
NIKE, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
NIKE, Inc. trades at 27.4x trailing earnings, compared to its 15-year median P/E of 29.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 58.9x vs a median of 28.8x. The company's 5-year average ROIC is 40.5% with a gross margin of 44.3%. Total shareholder yield (dividends + buybacks) is 4.4%. At current prices, the estimated annualized return to fair value is +4.4%.
NIKE, Inc. (NKE) has a net profit margin of 7.0%. This is a modest margin.
NIKE, Inc. (NKE) generated $3.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NIKE, Inc. (NKE) has a debt-to-equity ratio of 0.60. This indicates moderate leverage.
NIKE, Inc. (NKE) reported earnings per share (EPS) of $2.16 in its most recent fiscal year.
NIKE, Inc. (NKE) has a return on equity (ROE) of 23.3%. This indicates the company generates strong returns for shareholders.
NIKE, Inc. (NKE) has a 5-year average gross margin of 44.3%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for NIKE, Inc. (NKE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NIKE, Inc. (NKE) has a book value per share of $8.87, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to complete "Win Now" actions by the end of calendar 2026, with gross margin expansion beginning in Q1 of fiscal 2027 and continuing through fiscal 2028 as the company reduces promotional activity and improves full-price sell-through. The company anticipates revenue headwinds to persist in the near term due to intentional reductions in sell-in to align with full-price demand and marketplace cleanup, particularly in Greater China and Converse, though profitability is expected to bottom before sales recover. Operating leverage and cost discipline are expected to drive earnings recovery, with management targeting a return to double-digit margins over the medium term as tariff impacts moderate and the benefits of operational restructuring annualize. The company remains focused on scaling its Sport Offense across Running, Training, Basketball, and ACG, with Sportswear and Jordan streetwear expected to remain negative through the first half of fiscal 2027 before improving in the back half.
Based on recent SEC filings and earnings calls, NIKE, Inc. (NKE) has provided the following forward guidance: Revenue: down low to mid single digits (Q1 FY2027); Gross margin: slightly positive (Q1 FY2027); Tax rate: low 20% range (FY2027); Revenue: down low to mid single digits (Q4 FY2026 through Q2 FY2027 (three-quarter period)); Earnings per share: flattish (Q4 FY2026 through Q2 FY2027 (three-quarter period)).