Nike Inc. (NYSE:NKE)

The financial ratios for the company display notable trends over the analyzed periods from May 31, 2020 to May 31, 2025. The Price to Earnings (P/E) ratio begins at a high level of 60.47 in 2020 and generally declines to a low of 18.78 by 2024, indicating an improving earnings situation or more conservative valuation. However, in the final year, 2025, there is an extraordinary spike to 2227.69, which is an outlier and suggests either a significant drop in earnings, a dramatic price increase, or reporting anomaly.

The Price to Operating Profit (P/OP) ratio follows a similar downward trend initially, starting at 49.29 in 2020 and decreasing steadily to 16.97 in 2024. This suggests improving operating profit margins or a lower price relative to operating profit over these years. Like the P/E ratio, there is an extreme surge in 2025 to 1937.05, reflecting potential instability or extraordinary conditions affecting the operating profit or share price in that year.

The Price to Sales (P/S) ratio shows a more fluctuating pattern. It rises from 4.11 in 2020 to a peak of 5.67 in 2021, then declines over the subsequent years to 2.08 in 2024, suggesting a relative decrease in market valuation per unit of sales over time. As with the other ratios, there is a sharp increase to 154.85 in 2025, marking a significant deviation from prior trends which may indicate unusual market or financial circumstances.

The Price to Book Value (P/BV) ratio demonstrates a decreasing trend from 19.06 in 2020 to 7.42 in 2024, possibly reflecting an increase in book value or a more conservative market valuation. The ratio remains relatively stable compared to initial years before the steep jump in 2025 to 542.72. This again aligns with the pattern of abrupt spikes in valuation multiples in the final year examined, suggesting an atypical event impacting the company’s book value or stock price.

Overall, the data from 2020 to 2024 indicates a general improvement in valuation metrics, with price multiples declining across earnings, operating profit, sales, and book value, potentially highlighting enhanced financial performance or market reassessment. The drastic and simultaneous increases in all ratios in 2025 point to exceptional circumstances causing significant valuation distortion, warranting further investigation to understand the underlying drivers and sustainability of such metrics.

Price to Earnings (P/E)

Decreased steadily from 60.47 in 2020 to 18.78 in 2024, then surged abnormally to 2227.69 in 2025.

Price to Operating Profit (P/OP)

Fell from 49.29 in 2020 to 16.97 in 2024, before rising sharply to 1937.05 in 2025.

Price to Sales (P/S)

Peaked at 5.67 in 2021 after 4.11 in 2020, decreased to 2.08 in 2024, then sharply increased to 154.85 in 2025.

Price to Book Value (P/BV)

Dropped from 19.06 in 2020 to 7.42 in 2024, followed by an abrupt rise to 542.72 in 2025.

The data reveals several distinct trends in the financial performance and market valuation over the period analyzed.

Share Price

The share price experienced significant volatility. Starting from a moderate level in 2020, it rose sharply to a peak in 2021 before declining steadily over subsequent years. By 2024 and 2025, the share price had decreased notably to levels substantially lower than the earlier peak, indicating a reduction in market valuation or investor confidence.

Earnings Per Share (EPS)

EPS showed an overall increasing trend from 2020 through 2022, reaching a high point in 2024. However, an abrupt drop occurred in 2025, where EPS declined drastically to near zero. This sharp decrease signals a significant reduction in profitability or potential extraordinary circumstances affecting earnings.

Price-to-Earnings (P/E) Ratio

The P/E ratio decreased from an initially very high level in 2020, indicating shares were highly valued relative to earnings. It continued to decline to its lowest in 2024, aligning with the rise in EPS and falling share price. In 2025, the P/E ratio surged dramatically to an extraordinarily high magnitude, reflecting the near-zero EPS value. This abnormal increase suggests market uncertainty or possibly sharp negative impacts on earnings that have not yet translated proportionally into share price changes.

Overall, the data indicates a period of initial growth and improved earnings, followed by a steep decline in profitability and market valuation by the final year. The dramatic changes in the P/E ratio in the last year emphasize potential volatility or market concerns about future performance.

Share Price Trends

The share price exhibited significant volatility during the analyzed periods. It showed a strong increase from $98.43 in May 2020 to a peak of $159.74 in May 2021. However, this was followed by a decline over the next three years, reaching a low of $71.41 in May 2024. A slight recovery was observed in May 2025, with the price increasing marginally to $72.98.

Operating Profit Per Share

Operating profit per share improved notably from $2.00 in May 2020 to $4.39 in May 2021, indicating enhanced operational efficiency or profitability. This figure remained relatively stable with minor fluctuations, slightly declining to $4.26 in May 2022 and $3.87 in May 2023, then increasing again to $4.21 in May 2024. A sharp and drastic decrease to $0.04 in May 2025 was observed, which represents a significant operational downturn in that year.

Price to Operating Profit Ratio (P/OP)

The price to operating profit ratio demonstrated a declining trend from 49.29 in May 2020 to 16.97 in May 2024, which may suggest the share price was becoming more attractive relative to operating profit during this period. However, in May 2025, this ratio soared dramatically to 1937.05, reflecting the substantial decline in operating profit per share combined with the relatively stable share price. This extreme value signifies a concerning discrepancy between price and financial performance at that time.

Overall Insights

Over the period, the company experienced an initial phase of growth in both share price and operating profit per share, followed by a period of decline and stabilization. The pronounced drop in operating profit per share in the last year analyzed and the corresponding spike in the P/OP ratio highlight a potential operational or market challenge. The share price's limited reaction to the decreased profitability in that year may indicate investor expectations of recovery or other external factors influencing price stability.

Share Price

The share price exhibited a significant increase from 98.43 US$ in May 2020 to a peak of 159.74 US$ in May 2021. Following this peak, there was a downward trend over the subsequent years, declining to 71.41 US$ by May 2024, and slightly increasing to 72.98 US$ in May 2025. This represents a notable depreciation after the 2021 high, with the price in 2025 less than half of the 2021 value.

Sales Per Share

Sales per share showed a generally upward trajectory from 23.98 US$ in May 2020 to a maximum of 34.26 US$ in May 2024. This indicates growth in sales on a per-share basis during this period. However, there is an abrupt and substantial decline to 0.47 US$ in May 2025, suggesting either a data anomaly or a dramatic drop in sales performance per share in the latest year.

Price-to-Sales (P/S) Ratio

The P/S ratio varied notably over the analyzed period. Initially, it rose from 4.11 in May 2020 to 5.67 in May 2021, concurrent with the peak in share price. From May 2021 onwards, the ratio declined steadily down to 2.08 by May 2024. However, in May 2025, there is an extreme spike to 154.85, which significantly deviates from previous values. This spike is likely influenced by the considerable drop in sales per share, causing the denominator in the ratio to approach zero, thereby inflating the P/S ratio artificially.

The financial data reveals notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the six-year period.

Share Price

The share price experienced a significant increase from 98.43 US$ in 2020 to a peak of 159.74 US$ in 2021. Following this peak, there was a decline to 111.62 US$ in 2022 and a slight further decrease to 107.53 US$ in 2023. The downward trend continued more sharply, with the share price dropping to 71.41 US$ in 2024 before stabilizing somewhat at 72.98 US$ in 2025.

Book Value per Share (BVPS)

BVPS rose steadily from 5.16 US$ in 2020 to 9.74 US$ in 2022, indicating consistent growth in the company’s net asset value per share during this period. However, it slightly decreased to 9.15 US$ in 2023, followed by a modest recovery to 9.62 US$ in 2024. The figure then dramatically fell to 0.13 US$ in 2025, suggesting a significant reduction in net assets or an accounting adjustment affecting the book value.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio initially remained high, moving slightly upward from 19.06 in 2020 to 19.79 in 2021, which correlates with the share price increase outpacing the rise in book value. Thereafter, the ratio dropped substantially to 11.46 in 2022 and remained stable around 11.75 in 2023. In 2024, the ratio decreased further to 7.42, reflecting the decline in share price relative to book value. A notable anomaly occurred in 2025, when the P/BV ratio surged to 542.72, driven by the drastic fall in BVPS to 0.13 US$, signaling an abnormal valuation scenario.

Overall, the data indicates a period of growth in both market valuation and book value until 2021-2022, followed by a phase of decline and volatility through 2024. The abrupt changes in 2025, particularly in BVPS and the resultant P/BV ratio, require further investigation to understand underlying causes such as asset write-downs, restructuring, or other extraordinary events affecting the financial position and market perception.