These numbers can be found on the 8-K report that’s filed with the SEC. For the second quarter of the 2017 fiscal year, revenues were up 6 percent to $8.2 billion; 8 percent growth on a currency neutral basis. Diluted earnings per share were up 11 percent to $0.50 compare to the prior year. Overall, these are solid numbers for current and potential investors and should show that the company can continue to grow.
Now, taking a look at the chart using the monthly time frame, we can see that price has been on a nice uptrend for the most part with a slight pull back that has occurred recently. This could provide a great entry opportunity because if the company is going to continue to increase in value, then this could allow you to enter at a discounted price. Of course a chart alone will not tell you all the details you need to know, but rather you should take into account the fundamental and technical data together to help in allowing you to formulate a well-rounded opinion.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Nike income statement, its balance sheet, and the statement of cash flows. Potential Nike investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Nike investors may use each financial statement separately, they are all related. The changes in Nike's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Nike's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Nike
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Nike performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Nike shares is the value that is considered the true value of the share. If
the intrinsic value of Nike is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Nike. Please read more on our
fundamental analysis page.
How effective is Nike in utilizing its assets?
Nike Inc reports assets on its Balance Sheet. It represents the amount of Nike resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Nike aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Textiles, Apparel & Luxury Goods space. To get a better handle on how balance sheet or income statements item affect Nike volatility, please check the breakdown of all its
fundamentals.
Are Nike Earnings Expected to grow?
The
future earnings power of Nike involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Nike factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Nike
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Nike
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Nike earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Nike dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Nike one year expected dividend income is about USD0.9 per share.
At present, Nike's
Dividend Paid And Capex Coverage Ratio is projected to drop slightly based on the last few years of reporting.
Investing in dividend-paying stocks, such as Nike Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Nike must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Nike. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Nike Gross Profit
Nike Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nike previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Nike Gross Profit growth over the last 10 years. Please check Nike's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective On Nike
Risks
For a full list of risks, you can take a look at the most recent 10-K report which will give you details on the risks. For now, here are a couple to keep in mind while doing your research. First, the company has to maintain their brand image as that is a main driving factor in the success of the company. If the image begins to slip, people will go to a competitor without batting an eyelash. Secondly, Nike has to maintain their leadership on the trends as the sports industry is always evolving and changing to the needs of the individuals that use the products.
Conclusion
Nike is a reputable company and will continue to be one for the near future, provided nothing drastic happens. There are several competitors in this industry so it is important to compare them all against each other to see which one is providing the best value. If you still have questions, be sure to consult an investing professional as they can help point you in the right direction. Some competitors to compare Nike against would be Adidas and Puma.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Nike Inc. Please refer to our
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