Fundamentals · NKE

DuPont (ROE Decomposition) for NKE

AI-generated plain-English read of dupont (roe decomposition) for NKE. Updated daily.

ROE is declining (3.7%) across multiple legs: profitability, asset efficiency, and leverage are all moving against the company. Broad deterioration like this is harder to reverse than a single-leg problem.

What will probably happen

ROE has been falling: without a reversal in the weakest leg, the next period will likely show further pressure.

What to do

If you HOLD this stock: ROE is declining. Reassess whether the original investment thesis still holds. If the weakest leg doesn't reverse in the next one or two quarters, that's a signal to trim.
If you are EVALUATING this stock: ROE is declining. Wait for one quarter of stabilization before entering. Deteriorating DuPont trends often have a lag; buying into a falling knife adds more risk than the valuation discount typically compensates for.
If you trade OPTIONS: No sharp DuPont signal either way. Premium is fairly priced for a fundamentals-stable story. Wait for a clearer inflection in one of the legs before positioning directionally.

38 periods with all three DuPont legs populated: trend reads are reliable.

Technical details

Technical analysis

Profitability (net margin): 4.6%, deteriorating, mixed
Asset efficiency (turnover): 0.30×, stable, healthy
Leverage (equity multiplier): 2.63×, stable, healthy
ROE: 3.7%, deteriorating
Primary ROE driver: Balanced
Periods analysed: 38
Sector context: not provided

Key levels

Key price and metric levels
Level	Value
latest roe	0.037
latest margin	0.046
latest turnover	0.304
latest em	2.631
em critical threshold	5
em high threshold	4