NIKE, Inc. (NKE) Stock Analysis

Analysis from 10-Q filed 2025-12-30. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 10.0%. FCF margin 2.3%. D/E 0.6x. Source: 10-Q filed 2025-12-30.

Metric	Value	Context
ROIC	10.0%	Near cost of capital
FCF Margin	2.3%	Cash flow pressure
Debt/Equity	0.6x	Moderate leverage

ROIC 10.0% — Top 50% of sector peers. FCF margin 2.3% — Bottom 50%.

Explore NIKE, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NKE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: NIKE, Inc. earns 10.0% ROIC, Top 50% in Industrials

ROIC TTM 10.0%, sector median 7.3%, Top 50%. DuPont: NOPAT margin 4.7% × asset turnover 1.2x. Gross margin 40.8%. Operating margin 6.0%. Source: 10-Q filed 2025-12-30.

Metric	NKE	Rating	Context
Return on Invested Capital (ROIC)	10.0%	Adequate	Above sector median of 7.3%
Return on Equity (ROE)	16.4%	Good	Efficient use of shareholder equity
Gross Margin	40.8%	Good	Strong pricing power
Operating Margin	6.0%	Adequate	Moderate operational efficiency

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Cash Flow: NIKE, Inc. generates $1.0B FCF at 2.3% margin, positive NaN/8 quarters

FCF TTM $1.0B. FCF margin 2.3%, Bottom 50%. OCF/Net income 0.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-30.

Metric	NKE	Rating	Context
Free Cash Flow Margin	2.3%	Warning	Thin cash margins
Free Cash Flow (TTM)	$1.0B	Good	Positive cash generation
OCF/Net Income	0.8x	Adequate	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: NIKE, Inc. at 0.6x leverage

Debt/Equity 0.6x. Total debt $8.0B, cash & investments $6.7B. Source: 10-Q filed 2025-12-30.

Metric	NKE	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-1.4B	Warning	Net debt position

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Valuation: NIKE, Inc. trades at 40.6x earnings

P/E 40.6x. EV/Sales 2.0x. FCF yield 1.1%. Dividend yield 2.6%. Source: 10-Q filed 2025-12-30.

Metric	NKE	Rating	Context
P/E Ratio	40.6x	Adequate	Premium valuation
EV/Sales	2.0x	Excellent	Attractive revenue multiple
FCF Yield	1.1%	Warning	Lower cash yield
Dividend Yield	2.6%	Adequate	Growth focus over income

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Capital Allocation: NIKE, Inc. returns 3.0% shareholder yield

Total shareholder yield 3.0% (div 2.6% + buyback 0.4%). Capital returned $2.7B TTM. Source: 10-Q filed 2025-12-30.

Metric	NKE	Rating	Context
Total Shareholder Yield	3.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	10.0%	Top 50%	1.4x above
Free Cash Flow Margin	2.3%	Bottom 50%	0.5x below
Gross Margin	40.8%	Top 50%	1.2x above
Operating Margin	6.0%	Bottom 50%	0.8x below
Return on Equity (ROE)	16.4%	Top 50%	1.9x above
P/E Ratio	40.6x	N/A	-

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Financial Scorecard

Metric	NKE	Rating	Sector Context
Return on Invested Capital (ROIC)	10.0%	Adequate	Top 50% of sector (median: 7.3%)
Free Cash Flow Margin	2.3%	Warning	Bottom 50% of sector (median: 4.7%)
Gross Margin	40.8%	Good	Top 50% of sector (median: 32.8%)
Debt to Equity Ratio	57.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	40.6x	Adequate	High expectations priced in
Free Cash Flow Yield	1.1%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is NIKE, Inc.'s Return on Invested Capital (ROIC)?

NIKE, Inc. (NKE) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.0%. Sector median 7.3%. Source: 10-Q filed 2025-12-30.

Q: What is NIKE, Inc.'s Free Cash Flow Margin?

NIKE, Inc. (NKE) has a free cash flow margin of 2.3%, generating $1.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-30.

Q: What is NIKE, Inc.'s P/E ratio and how does it compare to peers?

NIKE, Inc. (NKE) trades at a P/E ratio of 40.6x, which is above the sector median of N/A. EV/Sales 2.0x. FCF yield 1.1%. Source: 10-Q filed 2025-12-30.

Q: Does NIKE, Inc. pay a dividend?

NIKE, Inc. (NKE) currently pays a dividend yield of 2.6%. Total shareholder yield (dividend + buybacks) 3.0%. Source: 10-Q filed 2025-12-30.

Q: How much debt does NIKE, Inc. have?

NIKE, Inc. (NKE) has a debt-to-equity ratio of 0.6x with total debt of $8.0 billion. Net debt $1.4 billion. Source: 10-Q filed 2025-12-30.

Q: What is NIKE, Inc.'s revenue and earnings growth?

NIKE, Inc. (NKE) declined revenue by 2.7% year-over-year. EPS -49.8% YoY. Source: 10-Q filed 2025-12-30.

Q: Is NIKE, Inc. buying back stock?

NIKE, Inc. (NKE) repurchased $345.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Source: 10-Q filed 2025-12-30.

Q: How does NIKE, Inc. compare to competitors in Industrials?

Compared to other companies in Industrials, NIKE, Inc. (NKE) shows: ROIC 10.0%, sector median 7.3% (Top 50%). FCF margin 2.3%, sector median 4.7% (Bottom 50%). Gross margin 40.8%, 8.0pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with NIKE, Inc.?

Quantitative warning flags for NIKE, Inc. (NKE): 1) FCF margin 2.3% (below 5%); 2) ROIC declining -11.8% over 8 quarters. Source: 10-Q filed 2025-12-30.

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Data Source: Data sourced from 10-Q filed 2025-12-30. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.