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NikeNKE -1.75%63 Return-on-Tangible-Asset is 11.48% as of May. 2026, which is 19% below its 10-year median of 14.25. GuruFocus rates NKE with a GF Score™ of 63/100 and a GF Value™ of $73.18 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,067 Manufacturing - Apparel & Accessories companies, Nike ranks better than 86.22% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Nike's annualizedNet Income for the quarter that ended in May. 2026 was $4,276 Mil. Nike's average total tangible assets for the quarter that ended in May. 2026 was $37,238 Mil. Therefore, Nike's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 11.48%.
The historical rank and industry rank for Nike's Return-on-Tangible-Asset or its related term are showing as below:
NKE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.4 Med: 14.25 Max: 19.36
Current: 8.41
During the past 13 years, Nike's highest Return-on-Tangible-Asset was 19.36%. The lowest was 8.40%. And the median was 14.25%.
NKE's Return-on-Tangible-Asset is ranked better than 86.22% of 1067
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.99
vs NKE: 8.41
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Nike Return-on-Tangible-Asset Related Terms
Nike Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Nike's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NKE vs DECK, ONON, BIRK: Return-on-Tangible-Asset Comparison
For the Footwear & Accessories subindustry, Nike's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Nike Return-on-Tangible-Asset vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Nike's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.48% mean?
Nike (NKE) has a Return-on-Tangible-Asset of 11.48% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nike and its competitors. This is 19% below median its historical median of 14.25. Over the past decade, Nike's Return-on-Tangible-Asset has ranged from 8.40 to 19.36. According to the industry distribution chart, Nike ranks #147 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 13.8%.
Is Nike's Return-on-Tangible-Asset too high?
Nike's current Return-on-Tangible-Asset of 11.48% is 19% below median its 10-year median of 14.25. Over the past 10 years, this metric has ranged from a low of 8.40 to a high of 19.36. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Asset is 1.99. Nike's value of 11.48% is 476.9% above this industry median. Based on the distribution chart, Nike ranks #147 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Nike has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nike's Return-on-Tangible-Asset compare to DECK and ONON?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Nike ranks #147 out of 1067 companies for Return-on-Tangible-Asset. This places Nike in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.99. Nike's value of 11.48% is 476.9% above this benchmark. Historically, Nike's own Return-on-Tangible-Asset has ranged from 8.40 to 19.36 over the past decade. While the company's 10-year median is 14.25 vs. the industry median of 1.99, Nike has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Asset among Manufacturing - Apparel & Accessories companies is 1.99, based on 1,067 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nike's current Return-on-Tangible-Asset of 11.48% is 476.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Nike and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Asset is 1.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nike's current Return-on-Tangible-Asset is 11.48%, which is 19% below median its own 10-year median of 14.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nike stock overvalued right now?
Based on GuruFocus' analysis, Nike (NKE) is currently considered Significantly Undervalued. The stock's GF Value™ is $73.18, compared to a current price of $42.21 — trading 42.3% below its estimated fair value. The current Return-on-Tangible-Asset is 11.48%, which is 19% below median its 10-year median of 14.25 and 476.9% above the Manufacturing - Apparel & Accessories industry median of 1.99. Nike's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Nike (NKE), the current Return-on-Tangible-Asset is 11.48% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nike (NKE) Overvalued in 2026?
Based on GuruFocus' analysis, Nike stock appears to be undervalued.
The current stock price of $42.21 is trading 42.3% below its estimated GF Value™ of $73.18.
GuruFocus considers Nike to be Significantly Undervalued.
Key valuation signals for NKE:
Return-on-Tangible-Asset: 11.48% (19% below median its 10-year median of 14.25)
GF Value™: $73.18 vs. price of $42.21 (42.3% below fair value)
Industry Position: 476.9% above the Manufacturing - Apparel & Accessories median (#147 of 1067)
No single metric tells the full story. See the NKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nike is the largest athletic footwear and apparel brand in the world. Footwear generates about two-thirds of its sales. Key performance footwear categories include basketball, running, and football (soccer). Its brands include Nike, Jordan (premium athletic footwear and clothing), NikeSkims (women's athleisure), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores (including about 5,500 in China), and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
63GF Score
Get the complete analysis for NKE
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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