Switch to:
Nike Inc  (NYSE:NKE) Piotroski F-Score: 5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Nike Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NYSE:NKE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 5

3
9

During the past 13 years, the highest Piotroski F-Score of Nike Inc was 9. The lowest was 3. And the median was 6.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Nike Inc Annual Data

May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 8.00 5.00 6.00

Nike Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 4.00 6.00 6.00 5.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug17) TTM:Last Year (Aug16) TTM:
Net Income was 842 + 1141 + 1008 + 950 = $3,941 Mil.
Cash Flow from Operations was 896 + 1067 + 889 + 575 = $3,427 Mil.
Revenue was 8180 + 8432 + 8677 + 9070 = $34,359 Mil.
Gross Profit was 3616 + 3750 + 3823 + 3962 = $15,151 Mil.
Average Total Assets from the begining of this year (Aug16)
to the end of this year (Aug17) was
(21156 + 22652 + 23152 + 23259 + 23647) / 5 = $22773.2 Mil.
Total Assets at the begining of this year ({FiscalYear0}) was $21,156 Mil.
Long-Term Debt & Capital Lease Obligation was $3,472 Mil.
Total Current Assets was $16,192 Mil.
Total Current Liabilities was $6,056 Mil.
Total Assets was 785 + 950 + 846 + 1249 = $3,830 Mil.

Revenue was 7686 + 8032 + 8244 + 9061 = $33,023 Mil.
Gross Profit was 3501 + 3689 + 3786 + 4123 = $15,099 Mil.
Average Total Assets from the begining of last year (Aug15)
to the end of last year (Aug16) was
(20766 + 22583 + 20987 + 21379 + 21156) / 5 = $21374.2 Mil.
Total Assets at the begining of last year (Aug15) was $20,766 Mil.
Long-Term Debt & Capital Lease Obligation was $1,993 Mil.
Total Current Assets was $14,589 Mil.
Total Current Liabilities was $5,363 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Nike Inc's current Net Income (TTM) was {NetIncome0_f}. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Nike Inc's current Cash Flow from Operations (TTM) was 3,427. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(Aug16)
=3941/21156
=0.18628285

ROA (Last Year)=Net Income/Total Assets(Aug15)
=3830/20766
=0.1844361

Nike Inc's return on assets of this year was 0.18628285. Nike Inc's return on assets of last year was 0.1844361. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Nike Inc's current Net Income (TTM) was 3,941. Nike Inc's current Cash Flow from Operations (TTM) was 3,427. ==> 3,427 <= 3,941 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Aug17)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Aug16 to Aug17
=3472/22773.2
=0.15245991

Gearing (Last Year: Aug16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Aug15 to Aug16
=1993/21374.2
=0.09324326

Nike Inc's gearing of this year was 0.15245991. Nike Inc's gearing of last year was 0.09324326. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Aug17)=Total Current Assets/Total Current Liabilities
=16192/6056
=2.67371202

Current Ratio (Last Year: Aug16)=Total Current Assets/Total Current Liabilities
=14589/5363
=2.7203058

Nike Inc's current ratio of this year was 2.67371202. Nike Inc's current ratio of last year was 2.7203058. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Nike Inc's number of shares in issue this year was 1676.9. Nike Inc's number of shares in issue last year was 1708.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=15151/34359
=0.44096161

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=15099/33023
=0.45722678

Nike Inc's gross margin of this year was 0.44096161. Nike Inc's gross margin of last year was 0.45722678. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Aug16)
=34359/21156
=1.62407828

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Aug15)
=33023/20766
=1.59024367

Nike Inc's asset turnover of this year was 1.62407828. Nike Inc's asset turnover of last year was 1.59024367. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+1+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Nike Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms


Headlines

From the Internet

NKE
Hibbett Upside

- Seekingalpha 2017-11-21 15:45:13

NKE
The 30 Dow Jones Stocks

- Fool 2017-11-21 15:39:00

NKE
11 Dividend Increases November 13minus 17 2017

- Seekingalpha 2017-11-21 08:45:20

NKE
These 3 Stocks Just Raised Their Dividends

- Fool 2017-11-21 08:34:00

NKE
Editors Picks Daily Rebound Beaten Tech Stocks

- Seekingalpha 2017-11-20 17:54:23

NKE
Divgro Pulse November 2017

- Seekingalpha 2017-11-20 12:04:38

NKE
27 Stock Portfolio

- Seekingalpha 2017-11-20 11:42:14

NKE
Foot Locker Coming Back

- Seekingalpha 2017-11-20 10:03:44

NKE
Assessing Foot Locker

- Seekingalpha 2017-11-20 09:04:08

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK