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Comparing Nike’s PE Ratio with Its Peers

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Jan. 16 2019, Updated 11:50 a.m. ET

Forward PE ratios

On January 14, Nike’s (NKE) 12-month forward PE ratio was 25.8x.

Under Armour (UAA), Skechers (SKX), Columbia Sportswear (COLM), and Lululemon Athletica (LULU) have forward PE ratios of 59.9x, 12.5x, 20.3x, and 32.3x, respectively.

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Nike’s EPS projections

For fiscal 2019, Wall Street analysts expect Nike’s adjusted EPS to increase 10.9% YoY to $2.65. For fiscal 2020, analysts expect the company’s adjusted EPS to rise 18.4% YoY to $3.14.

Nike’s bottom-line growth is expected to be cushioned by higher revenues despite the increased tax burden and escalating expenses. For fiscal 2019, Nike expects the SG&A expenses to grow at a low-double-digit percentage rate. Nike expects its tax rate to be 16%–18%. The company hasn’t provided the EPS outlook.

Peers’ EPS projections 

Analysts expect Under Armour’s adjusted EPS to rise 15.1% YoY to $0.22 in 2018. For 2019, Under Armour’s EPS is expected to increase 50.0% YoY to $0.33.

In fiscal 2018, analysts expect Columbia Sportswear’s adjusted EPS to increase 21.5% to $3.62. For fiscal 2019, Columbia Sportswear’s EPS could increase 12.4% to $4.07

For 2018, analysts expect that Skechers’ adjusted EPS could increase 3.4% to $1.84. For 2019, Skechers’ EPS is forecast to increase 8.2% to $1.99.

For Lululemon Athletica in fiscal 2018, analysts expect the EPS to increase 43.2% to $3.71. For fiscal 2019, the EPS is expected to increase 17.5% to $4.36.

Dividend yield

Nike remains committed to paying dividends to its stockholders. The company increased its dividend 10.0% to $0.22 in December. The annualized dividend is $0.88.

Nike’s dividend yield was 1.2% based on its closing price of $76.09 on January 14. Columbia Sportswear’s dividend yield was the same on January 14. Under Armour, Skechers, and Lululemon Athletica don’t pay dividends.

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