NKE Nike Inc

Nike is the world's largest athletic footwear and apparel company, designing and marketing shoes, clothing, and equipment under the Nike and Jordan brands. Sector: Consumer Discretionary.

Nike Inc (NKE) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Through the lens of capital efficiency, ROIC is 12.12%, WACC is 10.04%, and the economic spread is 2.08%. On balance, ROIC edges above WACC, suggesting the company are value-creative in aggregate, if not dramatically so. Supporting metrics show ROE at 16.18% and ROA at 5.62%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Assessed on a multiple basis, trailing P/E of 29.20, forward P/E of 23.18, PEG of 11.21. Forward P/E comes in somewhat below trailing — a gap that is supportive of the valuation case without implying a sharp near-term earnings inflection. At this PEG level, the valuation case rests more on quality, scarcity, or market leadership than on earnings growth alone. The company's weighted current ratio of 2.14 reflects adequate near-term financial stability. Overall, the valuation setup reads as a balance between expected growth and execution risk, with liquidity acting as an important stabilizer if macro conditions become less favorable.

The margin profile breaks down as follows: gross margin sits at 40.87%, operating margin at 6.36%, and free cash flow margin at 2.25%. Gross margins are in good shape, suggesting the the company maintain pricing discipline at the revenue-to-cost interface. Operating margins are modest, suggesting overhead costs are consuming a meaningful share of gross profit. The company's FCF margin is minimal, suggesting the company are heavily reinvesting or facing meaningful capex demands. This stack calls for monitoring: profitability is present, but conversion from revenue to operating income to free cash is not fully consistent.

The near-term directional case rests on two inputs: TTM revenue growth of 0.09% indicating muted but still positive top-line momentum across the company. In parallel, analyst consensus projects significant upside from current levels based on current consensus targets. The two figures measure different things — one reflects what businesses are actually delivering, the other what the market expects them to deliver. The extent to which these signals converge or diverge will likely be a primary driver of realized returns relative to current expectations. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The data points reviewed collectively point toward a positive outcome if execution holds — the setup is favorable even accounting for the inherent uncertainty in forward estimates.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.