Nike Inc
🇺🇸 NKE · NYSE/NASDAQ · US6541061031
Consumer
USD 41.88 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
27.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 41.88 ÷ 1.52 = 27.5
TTM period through: 2026-02-28
Forward P/E (estimated): 22.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 27.6
Yield (Fwd)
3.92%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.83%
Div. Growth (5Y CAGR)
11.1%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
1.4x
Latest quarter: 6.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-02-28
Latest quarter (2026-02-28): 6.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
107.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 71.5%
Cash Flow Payout (TTM): 141.0%
FCF Coverage (TTM): 0.44x
ROE
16.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Nike is a globally recognized athletic brand, but its discretionary nature fundamentally misaligns with our focus on essential services. The company faces a prolonged earnings contraction, deteriorating dividend cash flow coverage, and trades at an elevated 27.5x P/E, making it unsuitable for conservative dividend strategies. Not recommended for new positions given the significant risks to the dividend and lack of valuation support.
Sector Context
Nike is a global leader in the design, marketing, and distribution of athletic footwear, apparel, equipment, and accessories. For dividend value investing, this consumer discretionary sector is highly cyclical, prone to shifting fashion trends, and lacks the predictable, recession-resistant cash flows found in essential service monopolies.
📊 Strategy Analysis
- • Operates in the discretionary fashion and apparel sector, which explicitly violates the strategy's requirement for essential, non-discretionary services.
- • The current dividend is completely uncovered by cash flows, with a Free Cash Flow coverage ratio of just 0.44x (consuming 141% of FCF).
- • Structural earnings contraction is evident with a 5-year EPS CAGR of -9.5%, confirming this is not a temporary cyclical dip.
⚠ What to Watch
- • Valuation multiples remain severely elevated (TTM P/E of 27.54x) despite declining earnings and deteriorating fundamentals.
- • Dividend faces high cut risk given TTM payout ratios of 107.95% on earnings and 141.03% on free cash flow.
- • Recent news highlights operational headwinds, including mass layoffs, sales declines in key markets like China, and multiple class-action lawsuits regarding data breaches and tariffs.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.