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Nike Inc
🇺🇸 NKE · NYSE/NASDAQ · US6541061031
Consumer
USD 43.58 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
28.6
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: 43.58 ÷ 1.52 = 28.6
TTM period through: 2026-02-28
Forward P/E (estimated): 22.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 21.0
Net Debt/EBITDA (TTM)
0.8x
Latest quarter: 1.4x
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 (2026-05-31): 1.4x
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).
ROE
22.1%
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
17.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.76%
TTM: 3.79%
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.
Forward Yield (estimated): 3.76%
Trailing Yield (TTM, last 12 months): 3.79%
Payout Ratio (Fwd)
107.8%
TTM: 71.5%
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 (Fwd): 107.8%
Payout (TTM): 71.5%
Cash Flow Payout (TTM): 141.0%
FCF Coverage (TTM): 0.44x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
9.8%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 01 Jun 2027 | — | USD | 0.41 |
| Forecast* | Quarterly | — | 02 Mar 2027 | — | USD | 0.41 |
| Forecast* | Quarterly | — | 01 Dec 2026 | — | USD | 0.41 |
| Forecast* | Quarterly | — | 02 Sep 2026 | — | USD | 0.4 |
| Paid | Quarterly | 04 May 2026 | 01 Jun 2026 | 01 Jul 2026 | USD | 0.41 |
| Paid | Quarterly | 13 Feb 2026 | 02 Mar 2026 | 01 Apr 2026 | USD | 0.41 |
| Paid | Quarterly | 20 Nov 2025 | 01 Dec 2025 | 02 Jan 2026 | USD | 0.41 |
| Paid | Quarterly | 07 Aug 2025 | 02 Sep 2025 | 01 Oct 2025 | USD | 0.4 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Nike operates in the highly discretionary footwear and apparel sector, which fundamentally misaligns with our focus on stable, essential services. The stock trades at an elevated valuation (P/E of 28.65) despite a prolonged earnings contraction and a dividend that is currently uncovered by free cash flow. Not recommended for new positions given the combination of strategy mismatch, poor dividend sustainability, and ongoing legal liabilities.
Sector Context
Nike designs, manufactures, and sells athletic footwear, apparel, and equipment globally. As a consumer discretionary company driven by brand appeal and fashion trends, it operates outside the scope of essential services (like utilities or infrastructure), making its cash flows inherently more cyclical and less predictable for conservative dividend investing.
📊 Strategy Analysis
- • Maintains a globally dominant brand presence in the athletic footwear and apparel market
- • Overall balance sheet leverage remains relatively low with Net Debt/EBITDA at 0.85x
⚠ What to Watch
- • Operates in the highly discretionary consumer sector, which fundamentally conflicts with the strategy's requirement for stable, essential services
- • Severe dividend sustainability risks, with the dividend currently consuming 141.03% of Free Cash Flow and 103.82% of TTM earnings
- • Valuation remains significantly elevated at a TTM P/E of 28.65x, unjustifiable given the structural earnings contraction (5-year EPS CAGR of -11.0%)
- • Faces significant legal and regulatory overhangs, including a €1.5 billion Belgian tax dispute and multiple class-action lawsuits regarding tariff refunds and data breaches
📊 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: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.