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Nike Inc Class B NKE

Morningstar Rating
$73.54 +0.17 (0.23%)
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Company Report

Nike’s Brand, Reach, Products, and Digital Strategy Should Allow It to Overcome Challenges

We view Nike as the leader of the athletic apparel market and believe it will recover from current challenges, such as a lack of recent innovation and soft demand for sportswear in key markets. Our wide moat rating is based on its intangible brand asset, as we believe it will maintain premium pricing and generate economic profits for at least 20 years. Nike, the largest athletic footwear brand in all major categories and in most markets, dominates areas like running and basketball with popular shoe styles. While it does face significant competition, we believe it has proven over a long period that it can maintain share and pricing.

Price vs Fair Value

NKE is trading at a 118% premium.
Price
$73.39
Fair Value
$911.00
Uncertainty
Medium
1-Star Price
$456.30
5-Star Price
$43.80
Economic Moat
Dmzt
Capital Allocation
Gzhmbzzmy

Bulls Say, Bears Say

Bulls

Although uneven of late, the global sportswear market should expand, especially in Asia and other developing areas. As the share leader in most countries, Nike is positioned to benefit.

Bears

As a worldwide business, Nike has felt the effects of issues like the war in Ukraine, shipping delays, currency volatility, and inflation. These and other issues could continue to impair its results.

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News

Trading Information

Previous Close Price
$73.37
Day Range
$73.1874.05
52-Week Range
$71.67123.38
Bid/Ask
$73.54 / $73.56
Market Cap
$111.06 Bil
Volume/Avg
8.5 Mil / 13.1 Mil

Key Statistics

Price/Earnings (Normalized)
20.33
Price/Sales
2.19
Dividend Yield (Trailing)
1.98%
Dividend Yield (Forward)
2.02%
Total Yield
6.12%

Company Profile

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan (premium athletic footwear and clothing), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Sector
Consumer Cyclical
Industry
Footwear & Accessories
Stock Style Box
Large Core
Total Number of Employees
83,700

Competitors

Valuation

Metric
NKE
02331
02020
Price/Earnings (Normalized)
20.339.6817.79
Price/Book Value
7.681.453.55
Price/Sales
2.191.282.98
Price/Cash Flow
17.007.5410.41
Price/Earnings
NKE
02331
02020

Financial Strength

Metric
NKE
02331
02020
Quick Ratio
1.671.462.74
Current Ratio
2.741.883.30
Interest Coverage
24.5526.44
Quick Ratio
NKE
02331
02020

Profitability

Metric
NKE
02331
02020
Return on Assets (Normalized)
15.59%10.43%13.91%
Return on Equity (Normalized)
41.17%14.35%25.28%
Return on Invested Capital (Normalized)
21.67%12.22%15.43%
Return on Assets
NKE
02331
02020
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