Where Does NIKE Inc. (NKE) Rank When It Comes To Price-To-Earnings Ratio?

NIKE Inc. (NYSE:NKE) trading with an addition of $0.53 to $156.83 on Thursday, an upside of 0.34 percent. An average of 5,783,521 shares of common stock have been traded in the last five days. There was a gain of $5.48 in the past week, and it reached a new high 31 times over the past 12 months. The last 20 days have seen an average of 8,905,980 shares traded, while the 50-day average volume stands at 6,421,622.

NKE stock has decreased by -1.55% in the last month. The company shares reached their 1-month lowest point of $144.37 on 10/01/21. With the stock rallying to its 52-week high on 08/06/21, shares of the company touched a low of $118.80 and a high of $174.38 in 52 weeks. It has reached a new high 24 times so far this year and achieved 10.48% or $15.86 in price. In spite of this, the price is down -10.06% from the 52-week high.


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Insider Transactions

70 days have passed since NIKE Inc. (NKE) last reported insider trading activity. Campion Andrew, who is CHIEF OPERATING OFFICER, most recently acquired $7,125 shares at $171.50 per share on Aug 05. In this transaction, the insider spent $1,221,938. EVP: CFO, Friend Matthew, disposed of 3,546 shares at a price of $171.50 on Aug 05. The insider now owns more than $608,139 worth of shares. Prior to that, EVP: CFO Friend Matthew went on to Sale 43,000 shares at $170.00 each on Aug 03. An amount of $7,310,000 was transacted.

Valuation Metrics

NIKE Inc. (NKE) has a trailing price-to-earnings (P/E) ratio of 41.52, which compares with the 15.40 for the broader industry and 31.25 for the sector. In the last five years, NIKE Inc.’s PE ratio has ranged between 84.03 and 20.38. The stock’s beta is 0.90. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.33, the price-to-book (PB) ratio at 17.23, and the price-to-cash flow ratio at 54.82.

NIKE Inc. pays a $1.10 dividend per share annually. It offers a dividend yield of 0.70%. The company has a payout ratio of 27.80%. The company’s most recent quarterly dividend payment took place on Oct. 1, and it was $0.2750 a share, without any change from last year. Its dividend has been increased for the last 5 consecutive years with the latest increase dividend $0.03 reported on Friday November 20 2020. Dividends have grown by 36.49% each year over the last three years.

NIKE Inc. will next go ex-dividend on 3-Dec. The next dividend payment NIKE Inc. will make is expected to be $0.275.

The quick ratio of NIKE Inc. for the three months ended August 30 was 2.40, and the current ratio was 3.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.66 and a total debt to equity ratio of 0.66 for the quarter ending August 30. On the profitability front, the trailing 12-month gross margin is 45.40% against a 5-year average of 44.3%. NIKE Inc.’s EBITDA margin for the year ending August 30 is 17.70%, while its operating margin for the same period stands at 15.70%. Its gross profit as reported stood at $19.96 billion compared to revenue of $44.54 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, NIKE Inc.’s return on assets was 16.60%, compared to 14.1% over the last five years. In the past year, the return on investment has been 26.80%, and the 5-year average is 23.5%. Meanwhile, the return on equity (ROE) for the past 12 months has been 49.00% and the 5-year average holds at 35.8%. For the broader industry, ROE averaged 9.42 over the past year.

Earnings Surprise

For the three-month period that ended August 30, NIKE Inc. had $2.98 billion in cash and short-term investments compared to $9.41 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.87 billion in the quarter, while revenues of $1.51 billion were grew 19.0%. The analyst consensus anticipated NIKE Inc.’s latest quarter earnings to come in at $1.11 per share, but it turned out to be $1.16, a 4.50% surprise. For the quarter, EBITDA amounted to $2.29 billion. Shareholders own equity worth $1.58 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at NIKE Inc. (NKE) price momentum. RSI 9-day as of the close on 13 October was 64.12%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.38%.

As of today, NKE’s price is $153.95 +3.61% or $5.48 from its 5-day moving average. NKE is currently trading -0.17% lower than its 20-day SMA and +17.36% higher than its 100-day SMA. However, the stock’s current price level is -8.48% below the SMA50 and +11.13% above the SMA200.

The stochastic %K and %D were 81.79% and 64.49%, respectively, and the average true range (ATR) was 3.23. With the 14-day stochastic at 91.98% and the average true range at 3.23, the RSI (14) stands at 56.10%. The stock has reached 3.77 on the 9-day MACD Oscillator while the 14-day reading was at 5.76.

Analyst Ratings

Goldman launched coverage on NIKE Inc. (NYSE: NKE) in its analyst report released on October 12, 2021. The firm assigned the stock a a Buy rating.The consensus rating for NIKE Inc. (NKE) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell NKE, while 5 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 22 others rate it as a “buy”.

What is NKE’s price target for the next 12 months?

Analysts predict a range of price targets between $154.00 and $214.00, with a median target of $181.00. Taking a look at these predictions, the average price target given by analysts for NIKE Inc. (NKE) stock is $183.59.

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