One-glance verdict
Undervalued
$82.92 our estimate vs market $37.13
Wall Street consensus: $36.51 (-56.0% lower than our fair-value estimate)
55% below our estimate, below the bear case
Fundamentals snapshot
NIKE, Inc.
NKE · NYQ · Consumer Cyclical · Footwear & Accessories
Current price
$37.13
52-week range
$31.97 - $70.44
Market cap
$55.15B
Balance sheet
Healthy
75.94x Strong cushion
Net debt $2.76B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 21.6% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Forward P/E (23.3x) is higher than trailing (17.9x) - earnings are expected to drop.
- Risk Net debt grew 36.6% over 3 years.
What this company does
NIKE, Inc.
Nike is a global giant famous for its athletic shoes, clothing, and gear, including the Jordan and Converse brands. The company makes money by selling to other stores and increasingly through its direct-to-consumer business (selling straight to customers from its own stores and website). This strategy is important because it gives Nike more control over its brand and can improve its profit margins (the percentage of each sale that is actual profit).
How the company got here
Originally named Blue Ribbon Sports, the company was founded in 1964 by Phil Knight and Bill Bowerman to distribute Japanese running shoes. It was rebranded as NIKE in 1971, named after the Greek goddess of victory. A major turning point was the 1984 signing of basketball player Michael Jordan, which led to the iconic Air Jordan line of sneakers and changed how companies use athlete endorsements (when a well-known person promotes a product). The launch of the "Just Do It" advertising campaign in 1988 further cemented its global brand identity. More recently, the company has focused on increasing its direct-to-consumer sales (selling directly to customers through its own stores and websites, rather than through other retailers).
What it actually does
NIKE is a global company that designs, markets, and sells athletic footwear, apparel, equipment, and accessories. You would recognize their products in stores as athletic shoes for various sports, sportswear like t-shirts and shorts, and sports gear such as basketballs and bags. The company sells these items for men, women, and children under several brand names, including NIKE, Jordan, and Converse. While they design and market their products, they outsource the actual manufacturing (the making of the products) to independent factories, mostly in Asia.
NIKE Brand
This is the company's main and largest business, which includes products sold under the NIKE and Jordan brands. It is broken down into three main product categories: footwear, apparel, and equipment. Footwear is the biggest part, making up more than half of the company's total revenue (the total amount of money a company brings in from sales). This segment sells products to wholesale customers (other stores that then sell to the public) and also directly to consumers through NIKE's own stores and online platforms.
Converse
Converse is a separate brand owned by NIKE that is known for its casual sneakers, including the iconic Chuck Taylor All-Stars. This segment also designs, markets, and sells apparel and accessories. While it's a well-known brand, it represents a much smaller portion of NIKE's overall business compared to the main NIKE and Jordan brands. Converse products are sold through both wholesale partners and the company's own retail and online stores.
What management is betting on now
Management is currently focused on a strategy they call "Pace," which aims to make the company more efficient and get products to consumers faster. A key part of this is modernizing their supply chain (the entire process of making and selling goods, from getting the raw materials to delivering the final product to the customer). They are also reorganizing the company into three main geographic areas to make decisions more quickly and be more responsive to local customer preferences. Another major focus is continuing to grow their direct-to-consumer business, which gives them more control over the customer experience and typically results in higher profit margins (the percentage of revenue a company keeps after accounting for the costs of producing the goods sold).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$920.00M
FY2025 Q3
$1.71B
FY2025 Q4
$363.00M
FY2026 Q1
$15.00M
FY2026 Q2
$386.00M
FY2026 Q3
$284.00M
FY2026 Q4
$1.50B
FY2027 Q1
$-64.00M
Revenue
$11.21B
Net income
$712.00M
Diluted EPS
0.48
Operating cash flow
$135.00M
Free cash flow
$-64.00M
Fetching…
Sources
Revenue
$10.97B
Net income
$1.07B
Diluted EPS
0.73
Operating cash flow
$1.64B
Free cash flow
$1.50B
Fetching…
Sources
Revenue
$11.28B
Net income
$520.00M
Diluted EPS
0.35
Operating cash flow
$430.00M
Free cash flow
$284.00M
Fetching…
Sources
Revenue
$12.43B
Net income
$792.00M
Diluted EPS
0.53
Operating cash flow
$579.00M
Free cash flow
$386.00M
Fetching…
Sources
Revenue
$11.72B
Net income
$727.00M
Diluted EPS
0.49
Operating cash flow
$222.00M
Free cash flow
$15.00M
Fetching…
Sources
Revenue
$11.10B
Net income
$211.00M
Diluted EPS
0.14
Operating cash flow
$463.00M
Free cash flow
$363.00M
Fetching…
Sources
Revenue
$11.27B
Net income
$794.00M
Diluted EPS
0.54
Operating cash flow
$1.79B
Free cash flow
$1.71B
Fetching…
Sources
Revenue
$12.35B
Net income
$1.16B
Diluted EPS
0.78
Operating cash flow
$1.05B
Free cash flow
$920.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $82.92 vs current price $37.13
Wall Street consensus is the average analyst price target: $36.51 (-56.0% lower than our fair-value estimate).
Our most-likely fair value is $82.92 a share — about 123.3% above today's price of $37.13, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $2.8B. Interest coverage 75.9x.
Net debt
$2.76B
Interest coverage
75.94x
NIKE, Inc.'s profit covers its interest bill about 75.9 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
NKE
BASELINE
NIKE, Inc.
Total debt $11.13B Interest coverage 75.94x This is the baseline the peer rows are being compared against.
Total debt $472.33M Interest coverage 499.17x +557% vs NKE Carries about 6.6x more debt cushion than NKE.
Total debt $682.97M Interest coverage 17.21x -77% vs NKE Carries about 4.4x less debt cushion than NKE.
Total debt $4.95B Interest coverage 3.64x -95% vs NKE Carries about 20.9x less debt cushion than NKE.
What you should know
The case for and against NKE
3 Rewards
3 Risks
Rewards
-
Returns 21.6% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 4.4% with 40-year payout history.
Risks
-
Forward P/E (23.3x) is higher than trailing (17.9x) - earnings are expected to drop.
-
Net debt grew 36.6% over 3 years.
-
Operating margin compressed from 11.5% to 7.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.85x
Forward P/E
23.26x
P/B
3.62x
P/S
1.20x
EV/EBITDA
11.84x
PEG ratio
1.58x
Profitability
How much profit each dollar creates
Gross margin
43.4%
Operating margin
7.9%
Net margin
6.7%
ROE
21.6%
ROA
6.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.73x
Current ratio
2.08x
Quick ratio
1.19x
Total debt
$11.13B
Total cash
$8.37B
Growth
How the business has been compounding
Revenue TTM
$45.89B
Revenue 5Y CAGR
-0.2%
EPS TTM
2.08
EPS 5Y CAGR
-13.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.78B
Free CF TTM
$2.18B
FCF margin
4.8%
Dividend
Shareholder payout
Yield
4.4%
Payout ratio
78.8%
Last ex-div date
2026-09-01