📊 NKE Key Takeaways
Is NIKE, Inc. (NKE) a Good Investment?
Nike demonstrates exceptional profitability with 20.9% ROE and 42.9% gross margins, generating strong free cash flow of $2.2B annually while maintaining a healthy balance sheet. However, the concerning 0.2% revenue growth and -2.8% EPS decline signal stagnation that requires near-term reversal to sustain shareholder value creation.
NIKE remains profitable and financially sound, supported by strong liquidity, moderate leverage, and positive free cash flow. However, essentially flat revenue, declining diluted EPS, an 8.4% operating margin, and modest cash conversion indicate that growth quality and operating momentum remain weak.
NIKE, Inc. Key Strengths (NKE)
- Exceptional ROE of 20.9% demonstrating superior capital efficiency
- Strong free cash flow of $2.2B with robust 4.7% FCF margin
- Solid balance sheet with 1.96x current ratio and conservative 0.53x debt/equity leverage
- Strong liquidity with a 1.96x current ratio and $7.56B in cash
- Moderate leverage with long-term debt near cash levels and debt-to-equity of 0.53x
- Positive operating cash flow and $2.18B of free cash flow
NKE Stock Risks: NIKE, Inc. Investment Risks
- Negligible revenue growth of 0.2% YoY indicating market stagnation or lost competitive position
- Declining diluted EPS of -2.8% suggests profitability per share is contracting despite stable margins
- Flat growth trajectory may constrain long-term shareholder returns without operational improvements
- Revenue growth is nearly stagnant at 0.2% year over year
- Diluted EPS declined 2.8%, signaling earnings pressure despite stable revenue
- Operating margin of 8.4% and free-cash-flow margin of 4.7% reflect weak profitability and cash conversion
Key Metrics to Watch
- Revenue growth acceleration and market share trends
- Diluted EPS stabilization and margin expansion opportunities
- Free cash flow deployment strategy and capital allocation efficiency
- Revenue growth and operating margin
- Free cash flow margin
NIKE, Inc. (NKE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.7% FCF margin may limit capital allocation flexibility.
NKE Profit Margin, ROE & Profitability Analysis
NKE vs Materials Sector: How NIKE, Inc. Compares
How NIKE, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NIKE, Inc. Stock Overvalued? NKE Valuation Analysis 2026
Based on fundamental analysis, NIKE, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NIKE, Inc. Balance Sheet: NKE Debt, Cash & Liquidity
NKE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NIKE, Inc.'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $3.73 reflects profitable operations.
NKE Revenue Growth, EPS Growth & YoY Performance
NKE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $11.3B | $520.0M | $0.35 |
| Q2 2026 | $12.4B | $792.0M | $0.53 |
| Q1 2026 | $11.6B | $727.0M | $0.49 |
| Q3 2025 | $11.3B | $794.0M | $0.54 |
| Q2 2025 | $12.4B | $1.2B | $0.78 |
| Q1 2025 | $11.6B | $1.1B | $0.70 |
| Q3 2024 | $12.4B | $1.2B | $0.77 |
| Q2 2024 | $13.3B | $1.3B | $0.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NIKE, Inc. Dividends, Buybacks & Capital Allocation
NKE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NIKE, Inc. (CIK: 0000320187)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NKE
What is the AI rating for NKE?
NIKE, Inc. (NKE) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NKE's key strengths?
Claude: Exceptional ROE of 20.9% demonstrating superior capital efficiency. Strong free cash flow of $2.2B with robust 4.7% FCF margin. ChatGPT: Strong liquidity with a 1.96x current ratio and $7.56B in cash. Moderate leverage with long-term debt near cash levels and debt-to-equity of 0.53x.
What are the risks of investing in NKE?
Claude: Negligible revenue growth of 0.2% YoY indicating market stagnation or lost competitive position. Declining diluted EPS of -2.8% suggests profitability per share is contracting despite stable margins. ChatGPT: Revenue growth is nearly stagnant at 0.2% year over year. Diluted EPS declined 2.8%, signaling earnings pressure despite stable revenue.
What is NKE's revenue and growth?
NIKE, Inc. reported revenue of $46.4B.
Does NKE pay dividends?
NIKE, Inc. pays dividends, with $2,407.0M distributed to shareholders in the trailing twelve months.
Where can I find NKE SEC filings?
Official SEC filings for NIKE, Inc. (CIK: 0000320187) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NKE's EPS?
NIKE, Inc. has a diluted EPS of $2.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NKE's fundamental grade?
Based on our AI fundamental analysis in August 2026, NIKE, Inc. has a A grade with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NKE stock overvalued or undervalued?
Valuation metrics for NKE: ROE of 20.9% (sector avg: 14%), net margin of 6.7% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is NKE's AI grade for 2026?
Our dual AI analysis gives NIKE, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NKE's free cash flow?
NIKE, Inc.'s operating cash flow is $2.9B, with capital expenditures of $684.0M. FCF margin is 4.7%.
How does NKE compare to other Materials stocks?
Vs Materials sector averages: Net margin 6.7% (avg: 10%), ROE 20.9% (avg: 14%), current ratio 1.96 (avg: 1.6).