Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin8.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin6.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt3.5 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$6.1B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$12.1B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$2.2B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income22.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$4.6B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit42.9%
Operating Margin8.2%
Net Margin6.7%
Company Info
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
2022
Gross Profit %
42.9%▲
42.7%▼
44.6%▲
43.5%•
N/A
Operating Margin %
8.2%▲
8.0%▼
12.3%▲
11.5%•
N/A
Net Income %
6.7%▼
7.0%▼
11.1%▲
9.9%•
N/A
Diluted EPS
2.10▼
2.16▼
3.73▲
3.23•
N/A
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$38.4B
$36.6B
$38.1B
$37.5B
N/A
Total Debt
$11.0B▲
$11.0B▼
$12.0B▼
$12.1B•
N/A
Working Capital
$12.1B▼
$12.8B▼
$14.8B▼
$15.9B•
N/A
Years to Pay Debt
3.55
3.42
2.10
2.40
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$2.2B▼
$3.3B▼
$6.6B▲
$4.9B•
N/A
Owner Earnings
$4.6B
$4.5B
$7.4B
$6.9B
N/A
CapEx % of Net Income
22.0%
13.4%
14.2%
19.1%
N/A
Income Statement
2026
2025
2024
2023
2022
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
4,594,000
4,510,000
7,155,000
6,774,000
Net Income From Continuing Operation Net Minority Interest
3,108,000
3,219,000
5,700,000
5,070,000
Reconciled Depreciation
797,000
808,000
844,000
859,000
Reconciled Cost Of Revenue
26,487,000
26,519,000
28,475,000
28,925,000
EBITDA
4,594,000
4,510,000
7,155,000
6,774,000
EBIT
3,797,000
3,702,000
6,311,000
5,915,000
Net Interest Income
50,000
107,000
161,000
6,000
Normalized Income
3,108,000
3,219,000
5,700,000
5,070,000
Net Income From Continuing And Discontinued Operation
3,108,000
3,219,000
5,700,000
5,070,000
Total Expenses
42,601,000
42,607,000
45,051,000
45,302,000
Diluted Average Shares
1,481,000
1,487,600
1,529,700
1,569,800
Basic Average Shares
1,479,800
1,484,900
1,517,600
1,551,600
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
3,108,000
3,219,000
5,700,000
5,070,000
Net Income Common Stockholders
3,108,000
3,219,000
5,700,000
5,070,000
Net Income
3,108,000
3,219,000
5,700,000
5,070,000
Net Income Including Noncontrolling Interests
3,108,000
3,219,000
5,700,000
5,070,000
Net Income Continuous Operations
3,108,000
3,219,000
5,700,000
5,070,000
Tax Provision
792,000
666,000
1,000,000
1,131,000
Pretax Income
3,900,000
3,885,000
6,700,000
6,201,000
Other Income Expense
53,000
76,000
228,000
280,000
Other Non Operating Income Expenses
53,000
76,000
228,000
280,000
Net Non Operating Interest Income Expense
50,000
107,000
161,000
6,000
Total Other Finance Cost
-50,000
-107,000
-161,000
-6,000
Operating Income
3,797,000
3,702,000
6,311,000
5,915,000
Operating Expense
16,114,000
16,088,000
16,576,000
16,377,000
Other Operating Expenses
12,317,000
10,954,000
Selling General And Administration
16,114,000
16,088,000
16,576,000
16,377,000
Selling And Marketing Expense
4,754,000
4,689,000
4,285,000
4,060,000
General And Administrative Expense
11,360,000
11,399,000
12,291,000
12,317,000
Other Gand A
11,360,000
11,399,000
12,291,000
12,317,000
Gross Profit
19,911,000
19,790,000
22,887,000
22,292,000
Cost Of Revenue
26,487,000
26,519,000
28,475,000
28,925,000
Total Revenue
46,398,000
46,309,000
51,362,000
51,217,000
Operating Revenue
46,398,000
46,309,000
51,362,000
51,217,000
Balance Sheet
2026
2025
2024
2023
2022
Ordinary Shares Number
1,483,499
1,476,000
1,503,000
1,532,000
Share Issued
1,483,499
1,476,000
1,503,000
1,532,000
Net Debt
379,000
497,000
1,492,000
856,000
Total Debt
11,033,000
11,013,000
11,952,000
12,144,000
Tangible Book Value
14,366,000
12,714,000
13,931,000
13,449,000
Invested Capital
22,807,000
21,174,000
23,339,000
22,937,000
Working Capital
12,056,000
12,796,000
14,789,000
15,946,000
Net Tangible Assets
14,366,000
12,714,000
13,931,000
13,449,000
Capital Lease Obligations
3,091,000
3,052,000
3,043,000
3,211,000
Common Stock Equity
14,865,000
13,213,000
14,430,000
14,004,000
Total Capitalization
20,807,000
21,174,000
22,333,000
22,931,000
Total Equity Gross Minority Interest
14,865,000
13,213,000
14,430,000
14,004,000
Stockholders Equity
14,865,000
13,213,000
14,430,000
14,004,000
Gains Losses Not Affecting Retained Earnings
-141,000
-258,000
53,000
231,000
Other Equity Adjustments
-141,000
-258,000
53,000
231,000
Retained Earnings
-155,000
-727,000
965,000
1,358,000
Additional Paid In Capital
15,158,000
14,195,000
13,409,000
12,412,000
Capital Stock
3,000
3,000
3,000
3,000
Common Stock
3,000
3,000
3,000
3,000
Total Liabilities Net Minority Interest
23,545,000
23,366,000
23,680,000
23,527,000
Total Non Current Liabilities Net Minority Interest
10,998,000
12,800,000
13,087,000
14,271,000
Other Non Current Liabilities
2,443,000
2,289,000
2,618,000
2,558,000
Non Current Deferred Liabilities
2,613,000
Non Current Deferred Taxes Liabilities
2,613,000
Long Term Debt And Capital Lease Obligation
8,555,000
10,511,000
10,469,000
11,713,000
Long Term Capital Lease Obligation
2,613,000
2,550,000
2,566,000
2,786,000
Long Term Debt
5,942,000
7,961,000
7,903,000
8,927,000
Current Liabilities
12,547,000
10,566,000
10,593,000
9,256,000
Current Debt And Capital Lease Obligation
2,478,000
502,000
1,483,000
431,000
Current Capital Lease Obligation
478,000
502,000
477,000
425,000
Current Debt
2,000,000
5,000
1,006,000
6,000
Other Current Borrowings
2,000,000
1,000,000
500,000
Current Notes Payable
5,000
6,000
6,000
10,000
Pensionand Other Post Retirement Benefit Plans Current
1,569,000
1,245,000
1,869,000
2,289,000
Current Provisions
1,589,000
1,834,000
1,282,000
994,000
Payables And Accrued Expenses
6,911,000
6,985,000
5,959,000
5,542,000
Current Accrued Expenses
2,316,000
2,239,000
2,011,000
1,911,000
Payables
4,595,000
4,746,000
3,948,000
3,631,000
Dividends Payable
618,000
598,000
563,000
529,000
Total Tax Payable
377,000
669,000
534,000
240,000
Income Tax Payable
377,000
669,000
534,000
240,000
Accounts Payable
3,600,000
3,479,000
2,851,000
2,862,000
Total Assets
38,410,000
36,579,000
38,110,000
37,531,000
Total Non Current Assets
13,807,000
13,217,000
12,728,000
12,329,000
Other Non Current Assets
5,674,000
5,178,000
4,511,000
3,770,000
Non Current Deferred Assets
3,821,000
Non Current Deferred Taxes Assets
3,821,000
Goodwill And Other Intangible Assets
499,000
499,000
499,000
555,000
Other Intangible Assets
259,000
259,000
259,000
274,000
Goodwill
240,000
240,000
240,000
281,000
Net PPE
7,634,000
7,540,000
7,718,000
8,004,000
Accumulated Depreciation
-6,526,000
-6,104,000
-5,914,000
-5,634,000
Gross PPE
14,160,000
13,644,000
13,632,000
13,638,000
Leases
2,114,000
2,037,000
2,023,000
1,876,000
Construction In Progress
427,000
404,000
193,000
525,000
Other Properties
2,838,000
2,712,000
2,718,000
2,923,000
Machinery Furniture Equipment
4,859,000
4,647,000
4,930,000
4,695,000
Buildings And Improvements
3,589,000
3,510,000
3,439,000
3,293,000
Land And Improvements
333,000
334,000
329,000
326,000
Current Assets
24,603,000
23,362,000
25,382,000
25,202,000
Other Current Assets
2,144,000
2,005,000
1,854,000
1,942,000
Prepaid Assets
2,129,000
Inventory
7,501,000
7,489,000
7,519,000
8,454,000
Finished Goods
7,501,000
7,489,000
7,519,000
8,454,000
Receivables
5,931,000
4,717,000
4,427,000
4,131,000
Accounts Receivable
5,931,000
4,717,000
4,427,000
4,131,000
Allowance For Doubtful Accounts Receivable
-27,000
-35,000
-35,000
-34,000
Gross Accounts Receivable
4,744,000
4,462,000
4,166,000
4,701,000
Cash Cash Equivalents And Short Term Investments
9,027,000
9,151,000
11,582,000
10,675,000
Other Short Term Investments
1,464,000
1,687,000
1,722,000
3,234,000
Cash And Cash Equivalents
7,563,000
7,464,000
9,860,000
7,441,000
Cash Equivalents
5,844,000
6,243,000
8,638,000
5,674,000
Cash Financial
1,719,000
1,221,000
1,222,000
1,767,000
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
2,184,000
3,268,000
6,617,000
4,872,000
Repurchase Of Capital Stock
-146,000
-2,985,000
-4,250,000
-5,480,000
Repayment Of Debt
0
-1,000,000
0
-500,000
Capital Expenditure
-684,000
-430,000
-812,000
-969,000
Interest Paid Supplemental Data
323,000
389,000
381,000
347,000
Income Tax Paid Supplemental Data
0
1,226,000
1,299,000
1,517,000
End Cash Position
7,563,000
7,464,000
9,860,000
7,441,000
Beginning Cash Position
7,464,000
9,860,000
7,441,000
8,574,000
Effect Of Exchange Rate Changes
11,000
1,000
-16,000
-91,000
Changes In Cash
88,000
-2,397,000
2,435,000
-1,042,000
Financing Cash Flow
-2,292,000
-5,820,000
-5,888,000
-7,447,000
Cash Flow From Continuing Financing Activities
-2,292,000
-5,820,000
-5,888,000
-7,447,000
Net Other Financing Charges
-93,000
-86,000
-136,000
-102,000
Proceeds From Stock Option Exercised
354,000
551,000
667,000
651,000
Cash Dividends Paid
-2,407,000
-2,300,000
-2,169,000
-2,012,000
Common Stock Dividend Paid
-2,407,000
-2,300,000
-2,169,000
-2,012,000
Net Common Stock Issuance
-146,000
-2,985,000
-4,250,000
-5,480,000
Common Stock Payments
-146,000
-2,985,000
-4,250,000
-5,480,000
Net Issuance Payments Of Debt
0
-1,000,000
0
-504,000
Net Short Term Debt Issuance
-1,000
0
-4,000
15,000
Net Long Term Debt Issuance
0
-1,000,000
0
-500,000
Long Term Debt Payments
0
-1,000,000
0
-500,000
Investing Cash Flow
-488,000
-275,000
894,000
564,000
Cash Flow From Continuing Investing Activities
-488,000
-275,000
894,000
564,000
Net Other Investing Changes
-65,000
8,000
-15,000
52,000
Net Investment Purchase And Sale
261,000
147,000
1,721,000
1,481,000
Sale Of Investment
1,577,000
3,381,000
6,488,000
7,540,000
Purchase Of Investment
-1,316,000
-3,234,000
-4,767,000
-6,059,000
Net PPE Purchase And Sale
-684,000
-430,000
-812,000
-969,000
Purchase Of PPE
-684,000
-430,000
-812,000
-969,000
Operating Cash Flow
2,868,000
3,698,000
7,429,000
5,841,000
Cash Flow From Continuing Operating Activities
2,868,000
3,698,000
7,429,000
5,841,000
Change In Working Capital
-1,678,000
-787,000
716,000
-513,000
Change In Payables And Accrued Expense
-959,000
-426,000
397,000
-225,000
Change In Payable
-959,000
-426,000
397,000
-225,000
Change In Account Payable
-959,000
-426,000
397,000
-225,000
Change In Prepaid Assets
519,000
-224,000
-260,000
-644,000
Change In Inventory
-31,000
120,000
908,000
-133,000
Change In Receivables
-1,207,000
-257,000
-329,000
489,000
Changes In Account Receivables
-1,207,000
-257,000
-329,000
489,000
Stock Based Compensation
715,000
709,000
804,000
755,000
Deferred Tax
-96,000
-288,000
-497,000
-117,000
Deferred Income Tax
-96,000
-288,000
-497,000
-117,000
Depreciation Amortization Depletion
797,000
808,000
844,000
859,000
Depreciation And Amortization
797,000
808,000
844,000
859,000
Amortization Cash Flow
50,000
33,000
48,000
156,000
Amortization Of Intangibles
50,000
33,000
48,000
156,000
Depreciation
747,000
775,000
796,000
703,000
Operating Gains Losses
22,000
37,000
-138,000
-213,000
Net Foreign Currency Exchange Gain Loss
22,000
37,000
-138,000
-213,000
Net Income From Continuing Operations
3,108,000
3,219,000
5,700,000
5,070,000
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $14.9B
Warren's Owner Earnings
$4.6B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$46.4B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.96x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $3.23 to $2.10 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-35.0% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $46.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.96xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $3.23 to $2.10 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what NKE is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
11.6%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
22.0%
13.4%
14.2%
19.1%
N/A
Repurchase of Capital Stock
-$146M
-$3.0B
-$4.2B
-$5.5B
N/A
Free Cash Flow
$2.2B▼
$3.3B▼
$6.6B▲
$4.9B•
N/A•
Warren's Owner Earnings
$4.6B
$4.5B
$7.4B
$6.9B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare NKE against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
NKE (NKE) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 42.9%. Operating margin: 8.2%. Net margin: 6.7%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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