NKE Intrinsic Valuation and Fundamental Analysis - Nike Inc - Alpha Spread

Nike Inc
NYSE:NKE

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Nike Inc Logo
Nike Inc
NYSE:NKE
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Price: 82.15 USD 0.06% Market Closed
Market Cap: 122.3B USD
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Intrinsic Value

The intrinsic value of one NKE stock under the Base Case scenario is 72.06 USD. Compared to the current market price of 82.15 USD, Nike Inc is Overvalued by 12%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

NKE Intrinsic Value
72.06 USD
Overvaluation 12%
Intrinsic Value
Price
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Base Case
Best Case

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Nike Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Summary

 

 

 

 

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for Nike Inc with those of its competitors based on recent analyst estimates.

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of Nike Inc and its key competitors using the latest financial data.

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of Nike Inc against its competitors.

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(gross, operating, and net) of Nike Inc compared to its peers.

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Business Breakdown

Nike Inc., founded in 1964, has risen to become a global leader in athletic footwear, apparel, and equipment. Known for its innovative products and iconic swoosh logo, Nike has cultivated a brand synonymous with performance and inspiration. The company’s extensive portfolio includes popular lines such as Air Max, Jordan, and Nike Free, appealing to a diverse range of consumers from professional athletes to everyday fitness enthusiasts. What sets Nike apart is its commitment to cutting-edge technology and sustainability, often investing in research to enhance athletic performance while also reducing environmental impact through initiatives like the Move to Zero campaign, which aims for a zero...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Nike Inc

Current Assets 25B
Cash & Short-Term Investments 10.3B
Receivables 4.8B
Other Current Assets 10B
Non-Current Assets 12.8B
PP&E 7.7B
Intangibles 499m
Other Non-Current Assets 4.6B
Current Liabilities 10.6B
Accounts Payable 3.4B
Accrued Liabilities 5.6B
Short-Term Debt 12m
Other Current Liabilities 1.7B
Non-Current Liabilities 13.3B
Long-Term Debt 8B
Other Non-Current Liabilities 5.3B
Efficiency

Earnings Waterfall
Nike Inc

Revenue
50B USD
Cost of Revenue
-27.6B USD
Gross Profit
22.4B USD
Operating Expenses
-16.5B USD
Operating Income
5.9B USD
Other Expenses
-615m USD
Net Income
5.3B USD

Free Cash Flow Analysis
Nike Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q1, NIKE's revenue declined by 10%, driven by notable drops across digital and wholesale channels. The gross margin improved to 45.4%, but EBIT also fell 15%. Guidance for Q2 projects further revenue declines of 8% to 10% and a gross margin decrease of approximately 150 basis points due to increased promotions. While challenges persist, particularly with classic franchises, optimism for the running segment persists with double-digit growth anticipated. Overall, NIKE emphasized strategic shifts in product portfolio to enhance brand momentum despite adversity and aims for gradual recovery as new innovations hit the market.

What is Earnings Call?
Fundamental Scores

NKE Profitability Score
Profitability Due Diligence

Nike Inc's profitability score is 63/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Positive Gross Profit
Positive 3-Year Average ROIC
Exceptional ROE
63/100
Profitability
Score

Nike Inc's profitability score is 63/100. The higher the profitability score, the more profitable the company is.

NKE Solvency Score
Solvency Due Diligence

Nike Inc's solvency score is 75/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
High Interest Coverage
Short-Term Solvency
Low D/E
75/100
Solvency
Score

Nike Inc's solvency score is 75/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

NKE Price Targets Summary
Nike Inc

Wall Street analysts forecast NKE stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for NKE is 94.09 USD with a low forecast of 57.57 USD and a high forecast of 126 USD.

Lowest
Price Target
57.57 USD
30% Downside
Average
Price Target
94.09 USD
15% Upside
Highest
Price Target
126 USD
53% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
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Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Oct 12, 2024
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
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Shareholder Yield

Current shareholder yield for NKE is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

NKE Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

NKE News

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Profile

Nike Inc Logo
Nike Inc

Country

United States of America

Industry

Textiles, Apparel & Luxury Goods

Market Cap

123.2B USD

Dividend Yield

1.8%

Description

NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. The company is headquartered in Beaverton, Oregon and currently employs 73,300 full-time employees. The firm's operating segments include North America, Europe, Middle East & Africa (EMEA), Greater China, and Asia Pacific & Latin America (APLA). The company focuses its NIKE Brand product offerings in categories such as Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear. The company also markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling and other outdoor activities. The company sells a line of performance equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities.

Contact

OREGON
Beaverton
1 SW Bowerman Dr
+15036713173.0
about.nike.com

IPO

1980-12-02

Employees

73 300

Officers

See Also

Discover More
What is the Intrinsic Value of one NKE stock?

The intrinsic value of one NKE stock under the Base Case scenario is 72.06 USD.

Is NKE stock undervalued or overvalued?

Compared to the current market price of 82.15 USD, Nike Inc is Overvalued by 12%.

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