Nike Story

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NKE -- USA Stock  

USD 129.99  0.03  0.0231%

While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to digest Nike Inc. Why are we still confident in anticipation of a complete recovery. Is the entity valuation justified? Here we go over the stock perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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The impact of latest bullish trends on Nike (NYSE:NKE)
The company has 13.02 B in debt with debt to equity (D/E) ratio of 1.62, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Nike has an asset utilization ratio of 174.94 percent. This indicates that the company is making $1.75 for each dollar of assets. An increasing asset utilization means that Nike Inc is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Nike Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nike Inc based exclusively on its fundamental and basic technical indicators. By analyzing Nike's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Nike's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Nike. We calculate exposure to Nike's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nike's related companies.

Nike Inc Investment Alerts

Nike investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Nike Inc performance across your portfolios.Please check all investment alerts for Nike

Nike Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Nike value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nike competition to find correlations between indicators driving the intrinsic value of Nike.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Nike, but it might be worth checking our own buy vs. sell analysis

Breaking down Nike Indicators

Nike Inc reported the last year's revenue of 37.4 B. Total Income to common stockholders was 2.54 B with profit before taxes, overhead, and interest of 16.24 B.

Margins Breakdown

Nike profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Nike itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Nike profit margins.
Operating Margin11.56
EBITDA Margin0.12
Gross Margin0.42
Profit Margin0.0766

Nike Revenue Per Employee is decreasing over the last 8 years. Moreover, Nike Average Assets is rather stable at the moment.

How will Nike shareholders react to the next dip?

Nike latest potential upside ascents over 2.83. Nike Inc has relatively low volatility with skewness of -1.01 and kurtosis of 3.81. However, we advise all investors to independently investigate Nike Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on Nike

Although many of the other players under the footwear & accessories industry are still a bit expensive, Nike may offer a potential longer-term growth to shareholders. To conclude, as of the 21st of September 2020, we believe that at this point, Nike is very steady with very low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our concluding 30 days buy-or-sell advice on the firm is Hold.

About Contributor

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 Vlad Skutelnik do not own shares of Nike Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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