Nike Inc
🇺🇸 NKE · NYSE/NASDAQ · US6541061031
Consumer
USD 44.19 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
29.1
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: 44.19 ÷ 1.52 = 29.1
TTM period through: 2026-02-28
Forward P/E (estimated): 17.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 29.1
Yield (Fwd)
3.71%
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): 3.63%
Net Debt/EBITDA (TTM)
1.4x
Latest quarter: 9.0x
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): 9.0x
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): 106.2%
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
19.2x
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 highly 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 valuation that does not adequately price in ongoing turnaround risks. Not recommended for new positions, as better opportunities exist in stable, non-discretionary businesses with proven dividend sustainability.
Sector Context
Nike designs, markets, and distributes athletic footwear, apparel, equipment, and accessories worldwide. Within a dividend value framework, the consumer discretionary and fashion apparel sector is fundamentally incompatible, as it relies on fickle consumer trends and discretionary spending rather than the highly predictable, monopolistic cash flows seen in essential utilities or infrastructure.
📊 Strategy Analysis
- • Debt profile remains fundamentally sound, with a conservative Net Debt/EBITDA of 1.36x and Debt/Equity of 0.79x.
- • Maintains a perfect 10-year dividend consistency score without any cuts, supported by long-term brand equity.
⚠ What to Watch
- • Operates in the discretionary consumer fashion/apparel sector, explicitly violating the strategy's requirement for essential, non-discretionary services.
- • Experiencing a structural earnings contraction rather than a cyclical dip, evidenced by a 5-year EPS CAGR of -9.5% and persistent margin deterioration.
- • Valuation multiples remain severely elevated for a struggling business, trading at a TTM P/E of 29.06x despite declining fundamentals.
- • Dividend sustainability is heavily strained, evidenced by a Cash Flow Payout of 141.03% and Free Cash Flow Dividend Coverage of just 0.44x.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.