Nike (NKE) AI Stock Analysis

• Market Cap: $101.86B
• Dividend Yield: 2.35%
• Average Volume (3M): 15.73M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.87
• Revenue Growth: -7.07%
• EPS Growth: -44.29%
• Country: US
• Employees: 79,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.49
• Shares Outstanding: 1,189,313,600
• 10 Day Avg. Volume: 23,518,025
• 30 Day Avg. Volume: 15,732,169
• PEG Ratio: -0.66
• Price to Book (P/B): 6.81
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 27.53
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: 27.61
• 1Y Price Target: $85.24
• Price Target Upside: 25.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28

• Rating: 66 Neutral
• Price Target: $77.00 ▲(13.14% Upside)

Nike's overall stock score reflects a combination of strong operational capabilities and challenges in maintaining growth and profitability. Financial performance is the most significant factor, with stable but pressured margins. Technical analysis and valuation suggest caution, while the earnings call highlights both opportunities and risks, particularly in regional performance and digital strategy.

Positive Factors

Running Business Growth

The significant growth in the running segment highlights the effectiveness of Nike's sport offense strategy, indicating strong consumer demand and potential for sustained revenue growth in this category.

North America Revenue Increase

The positive revenue growth in North America, especially in wholesale, underscores Nike's strong market position and effective sales strategies, suggesting continued regional strength and resilience.

Inventory Management Progress

Improved inventory management reflects Nike's strategic focus on maintaining a healthy marketplace, which can enhance operational efficiency and reduce excess costs over time.

Negative Factors

Greater China Revenue Decline

The revenue decline in Greater China indicates structural challenges in a key market, which could hinder Nike's growth prospects and require strategic adjustments to regain momentum.

NIKE Digital Traffic Decline

The decline in digital sales and traffic suggests challenges in Nike's digital transformation efforts, potentially impacting long-term growth in e-commerce and direct-to-consumer channels.

Gross Margin Decline

The decline in gross margins due to higher costs and tariffs could pressure Nike's profitability, necessitating cost management and pricing strategies to sustain margins.

Nike Business Overview & Revenue Model

Company Description

Nike, Inc. is a global leader in athletic footwear, apparel, equipment, and accessories, catering to a diverse range of sports and lifestyle activities. Founded in 1964 and headquartered in Beaverton, Oregon, Nike operates through several segments, including Footwear, Apparel, Equipment, and Direct-to-Consumer sales. The company is renowned for its innovative products and marketing strategies, featuring iconic brands such as Nike, Jordan, and Converse, and offers a wide range of products designed for athletes and consumers alike.

How the Company Makes Money

Nike generates revenue primarily through the sale of its footwear, apparel, and equipment. The company's revenue model is driven by a combination of wholesale distribution to retailers and direct-to-consumer sales through its own retail stores and e-commerce platforms. Key revenue streams include the sale of performance and lifestyle products, with particular strength in athletic footwear. Nike also benefits from significant partnerships, including collaborations with professional athletes and sports teams, which enhance brand visibility and drive sales. Additionally, the company has invested heavily in digital transformation, improving its online presence and customer engagement, contributing to a growing portion of its revenue from e-commerce. Lastly, licensing and royalties from the use of its brand and trademarks further bolster its earnings.

Nike Financial Statement Overview

Summary

Nike demonstrates strong operational capabilities with a robust gross profit margin and effective cash management. However, recent declines in revenue growth and profitability margins highlight potential challenges in maintaining growth and controlling costs. The balance sheet remains stable with moderate leverage, but declining return on equity suggests reduced efficiency in generating returns for shareholders.

Income Statement

Nike's income statement shows a solid gross profit margin of 41.75% TTM, indicating efficient production and sales processes. However, the net profit margin has decreased to 6.23% TTM from 11.09% in the previous year, reflecting increased expenses or pricing pressures. Revenue growth has been volatile, with a recent decline of 23.7% TTM, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also decreased, indicating potential operational inefficiencies or increased costs.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.82 TTM, showing moderate leverage. Return on equity has decreased to 21.16% TTM from 39.57% in 2022, indicating reduced profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.93% TTM, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio is 0.34 TTM, suggesting that cash generation is not fully aligned with reported earnings. However, the free cash flow to net income ratio remains strong at 88.37%, indicating effective cash management relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.44B	46.31B	51.36B	51.22B	46.71B	44.54B
Gross Profit	19.48B	19.79B	22.89B	22.29B	21.48B	19.96B
EBITDA	4.23B	4.51B	7.16B	6.77B	7.51B	7.73B
Net Income	2.90B	3.22B	5.70B	5.07B	6.05B	5.73B
Balance Sheet
Total Assets	37.33B	36.58B	38.11B	37.53B	40.32B	37.74B
Cash, Cash Equivalents and Short-Term Investments	8.57B	9.15B	11.58B	10.68B	13.00B	13.48B
Total Debt	11.06B	11.02B	11.95B	12.14B	12.63B	12.81B
Total Liabilities	23.87B	23.37B	23.68B	23.53B	25.04B	24.97B
Stockholders Equity	13.47B	13.21B	14.43B	14.00B	15.28B	12.77B
Cash Flow
Free Cash Flow	3.01B	3.27B	6.62B	4.87B	4.43B	5.96B
Operating Cash Flow	3.53B	3.70B	7.43B	5.84B	5.19B	6.66B
Investing Cash Flow	-168.00M	-275.00M	894.00M	564.00M	-1.52B	-3.80B
Financing Cash Flow	-4.80B	-5.82B	-5.89B	-7.45B	-4.84B	-1.46B

Nike Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKE, the sentiment is Negative. The current price of 68.06 is below the 20-day moving average (MA) of 70.77, below the 50-day MA of 73.57, and below the 200-day MA of 69.01, indicating a bearish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 29.36 is Positive, neither overbought nor oversold. The STOCH value of 5.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKE.

Nike Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIRK	78 Outperform	$8.13B	24.58	11.36%	―	18.66%	183.98%
SKX	77 Outperform	―	―	―	―	12.11%	17.08%
DECK	71 Outperform	$15.07B	15.18	43.58%	―	15.43%	24.20%
WWW	69 Neutral	$2.10B	24.92	27.52%	1.55%	-2.83%	―
CROX	68 Neutral	$4.43B	21.59	15.39%	―	2.04%	-71.52%
NKE	66 Neutral	$101.86B	35.32	21.12%	2.35%	-7.07%	-44.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Nike Corporate Events

Nike Adjusts Product Purchase Obligations in Annual Report

Nike, Inc. has corrected an error in its Annual Report regarding product purchase obligations as of May 31, 2025. The obligations were overstated and have been adjusted to approximately $5 billion, all payable within the next 12 months, impacting the company’s financial disclosures.

Nike Nominates Jørgen Vig Knudstorp to Board

On June 24, 2025, NIKE, Inc. announced the nomination of Jørgen Vig Knudstorp for election to its Board of Directors at the upcoming annual meeting on September 9, 2025. Knudstorp, with extensive experience in brand and digital marketing, strategy, and consumer products from his tenure at LEGO, is expected to contribute significantly to NIKE’s growth and brand storytelling initiatives.

Nike Board Member Cathleen Benko Announces Retirement

On June 13, 2025, Cathleen Benko announced her retirement from Nike‘s Board of Directors, effective at the company’s 2025 annual shareholder meeting. Her departure is amicable, with no disagreements with the company, and she is commended for her contributions over the past seven years.