US · NYSE · NKE
Nike (NKE) stock analysis: valuation and financials
Consumer Discretionary · Shoe Manufacturing
$35.46 +0.3% Price as of Oct 13, 2026
Narrow eroding moat: 3-year revenue CAGR -3.2%, 4.7% FCF margin, 6.7% net margin, but only $990M net debt; base case equity value $76.0B vs $52.7B market cap.
- Market cap
- $52.7B
- P/E
- 17.0x
- EV/Sales
- 1.2x
- FCF yield
- 4.0%
- 52-week range
- $33.87 – $71.17
Research as of Oct 13, 2026
Business quality scorecard
- Growth11
- Profitability42
- Cash flow70
- Balance sheet100
- Capital allocation99
- Valuation54
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Wholesale retailers, distributors and end consumers pay for NIKE, Jordan and Converse footwear, apparel and equipment; NIKE Brand is the profit engine at 97.5% of FY2026 revenue of $46.4B, while Converse (2.5%) contracts 30.6% yoy.
Financials by year
| FY2022Jun 2021–May 2022 | FY2023Jun 2022–May 2023 | FY2024Jun 2023–May 2024 | FY2025Jun 2024–May 2025 | FY2026Jun 2025–May 2026 | |
|---|---|---|---|---|---|
| Revenue | $46.7B | $51.2B | $51.4B | $46.3B | $46.4B |
| Revenue growth | +4.9% | +9.6% | +0.3% | -9.8% | +0.2% |
| Gross margin | 46.0% | 43.5% | 44.6% | 42.7% | 42.9% |
| Net income | $6.0B | $5.1B | $5.7B | $3.2B | $3.1B |
| Free cash flow | $4.4B | $4.9B | $6.6B | $3.3B | $2.2B |
| FCF margin | 9.5% | 9.5% | 12.9% | 7.1% | 4.7% |
Amounts in USD · What is free cash flow?
Margins FY2026 gross margin 42.9% vs 42.7% FY2025 (+20bp); EBIT margin ~8.3% vs 8.2% (EBIT $3,850M on $46.4B revenue). TTM gross margin 43.1%, net margin 6.7%. Q1 FY2027 gross margin 42.8%, up 60bp y/y. Warehousing, logistics and FX gains offset higher product costs and Converse weakness.
- Cash flow WatchOperating cash flow $2.87B in FY2026 versus net income $3.11B; TTM OCF $2.78B versus net income $3.09B. Cash conversion below 1.0 and deteriorating, versus $6.66B OCF on $5.73B net income in FY2021.
- Debt LowNet debt $990M against $52.7B market cap; TTM cash $6.9B versus total debt $7.9B. Debt/equity 0.52 and current ratio 2.07 leave no refinancing pressure.
Balance sheet
- Cash & short-term investments
- $6.9B
- Total debt
- $7.9B
- Net debt
- $990.0M
- Net debt / EBITDA
- —
- Current ratio
- 2.1x
As of Aug 31, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution has stalled: FY2026 revenue $46.4B, up 0.2% yoy, 3-year revenue CAGR -3.2%; net margin 6.7% versus 12.9% in FY2022; return on equity still 22.1%.
- Credibility LowInterim releases gave no numeric guidance and each quarter was framed as 'in line with our expectations' while fundamentals eroded: net income fell to $3.1B in FY2026 from $5.7B in FY2024.
Valuation range
Implied value per share · Price when researched: $35.46
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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