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Nike Inc (NKE)NKE
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Upturn Advisory Summary
11/22/2024: NKE (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -20.7% | Upturn Advisory Performance 2 | Avg. Invested days: 34 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/22/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -20.7% | Avg. Invested days: 34 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/22/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 117.08B USD |
Price to earnings Ratio 22.66 | 1Y Target Price 90.74 |
Dividends yield (FY) 2.03% | Basic EPS (TTM) 3.49 |
Volume (30-day avg) 9879800 | Beta 1.03 |
52 Weeks Range 70.43 - 121.92 | Updated Date 12/2/2024 |
Company Size Large-Cap Stock | Market Capitalization 117.08B USD | Price to earnings Ratio 22.66 | 1Y Target Price 90.74 |
Dividends yield (FY) 2.03% | Basic EPS (TTM) 3.49 | Volume (30-day avg) 9879800 | Beta 1.03 |
52 Weeks Range 70.43 - 121.92 | Updated Date 12/2/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.6% | Operating Margin (TTM) 10.43% |
Management Effectiveness
Return on Assets (TTM) 10.65% | Return on Equity (TTM) 37.98% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 22.66 | Forward PE 28.99 |
Enterprise Value 119080809124 | Price to Sales(TTM) 2.34 |
Enterprise Value to Revenue 2.38 | Enterprise Value to EBITDA 17.62 |
Shares Outstanding 1190599936 | Shares Floating 1172592286 |
Percent Insiders 1.7 | Percent Institutions 81.82 |
Trailing PE 22.66 | Forward PE 28.99 | Enterprise Value 119080809124 | Price to Sales(TTM) 2.34 |
Enterprise Value to Revenue 2.38 | Enterprise Value to EBITDA 17.62 | Shares Outstanding 1190599936 | Shares Floating 1172592286 |
Percent Insiders 1.7 | Percent Institutions 81.82 |
Analyst Ratings
Rating 3.82 | Target Price 112.58 | Buy 5 |
Strong Buy 15 | Hold 17 | Sell 1 |
Strong Sell 1 |
Rating 3.82 | Target Price 112.58 | Buy 5 | Strong Buy 15 |
Hold 17 | Sell 1 | Strong Sell 1 |
AI Summarization
Nike Inc. (NKE): A Comprehensive Overview
Company Profile:
Detailed History and Background:
- Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman.
- Renamed Nike in 1971, after the Greek goddess of victory.
- Originally distributed Onitsuka Tiger shoes in the US, transitioned to own footwear production in the 1970s.
- Achieved explosive growth with innovative marketing campaigns featuring athletes like Michael Jordan and Tiger Woods.
- Today, Nike is the world's leading athletic footwear and apparel company.
Core Business Areas:
- Design, development, and marketing of athletic footwear, apparel, equipment, and accessories.
- Direct-to-consumer sales through global retail stores and e-commerce platform.
- Wholesale distribution to independent retailers, sporting goods stores, and franchisees.
Leadership Team and Corporate Structure:
- President and CEO: John Donahoe
- Executive Vice President and CFO: Matthew Friend
- Board of Directors: Comprised of prominent business leaders with expertise in retail, finance, and sports.
Top Products and Market Share:
Top Products:
- Footwear: Nike Air Max, Air Force 1, Jordan Brand, running shoes.
- Apparel: Dri-FIT activewear, sportswear, T-shirts, hoodies.
- Equipment: Sports balls, gloves, fitness trackers.
Market Share:
- Global Athletic Footwear: 25.1% (2022)
- Global Athletic Apparel: 20.9% (2022)
- US Athletic Footwear: 48.3% (2022)
- US Athletic Apparel: 28.5% (2022)
Product Performance and Market Reception:
- Nike consistently ranks among the most valuable and recognized brands globally.
- Products receive positive reviews for quality, innovation, and performance.
- Strong brand loyalty among athletes and consumers.
Total Addressable Market:
- Global Apparel Market: $3.3 trillion (2023)
- Global Footwear Market: $373.8 billion (2023)
- Global Sporting Goods Market: $543.9 billion (2023)
Financial Performance:
Recent Financial Statements (FY2023):
- Revenue: $46.7 billion
- Net Income: $6.0 billion
- Gross Margin: 44.3%
- Operating Margin: 13.4%
- EPS: $3.94
Year-over-Year Comparison:
- Revenue increased 7.5% compared to FY2022.
- Net Income increased 2.4% compared to FY2022.
- EPS increased 3.8% compared to FY2022.
Cash Flow and Balance Sheet:
- Strong cash flow from operations ($7.4 billion in FY2023).
- Healthy balance sheet with low debt-to-equity ratio (0.35).
Dividends and Shareholder Returns:
Dividend History:
- Nike has paid a dividend since 2004.
- Recent dividend yield: 0.77%.
- Payout ratio: 30%.
Shareholder Returns:
- One-year total return: 15.4%.
- Five-year total return: 124.5%.
- Ten-year total return: 337.4%.
Growth Trajectory:
Historical Growth:
- Revenue has grown at a compounded annual growth rate (CAGR) of 8.5% over the past 5 years.
- EPS has grown at a CAGR of 12.3% over the past 5 years.
Future Growth Projections:
- Analysts expect revenue to grow at a CAGR of 6.5% over the next 5 years.
- EPS is expected to grow at a CAGR of 8.5% over the next 5 years.
Growth Prospects:
- Expanding direct-to-consumer footprint.
- Increasing focus on digital innovation and personalization.
- Growing presence in emerging markets like China and India.
Market Dynamics:
Industry Overview:
- The athletic wear market is highly competitive and fragmented.
- Key trends include athleisure, sustainability, and digitalization.
- Technological advancements are driving product innovation and supply chain optimization.
Nike's Positioning:
- Strong brand equity and global reach.
- Diversified product portfolio catering to various sports and activities.
- Strong relationships with athletes and celebrities.
Competitors:
- Adidas (ADDYY)
- Puma (PUMSY)
- Under Armour (UAA)
- Lululemon (LULU)
Market Share Percentages:
- Nike: 25.1%
- Adidas: 13.8%
- Puma: 5.2%
- Under Armour: 3.4%
- Lululemon: 2.4%
Competitive Advantages and Disadvantages:
Advantages:
- Strong brand recognition and loyalty.
- Extensive product portfolio and distribution network.
- Innovative product development capabilities.
Disadvantages:
- Intense competition in the industry.
- Reliance on manufacturing in low-cost countries.
- Vulnerable to supply chain disruptions.
Potential Challenges and Opportunities:
Challenges:
- Maintaining brand relevance and differentiation in a crowded market.
- Managing supply chain disruptions and rising costs.
- Evolving consumer preferences and increasing competition from digital-native brands.
Opportunities:
- Expanding in emerging markets.
- Capitalizing on digital innovation and e-commerce growth.
- Deepening engagement with consumers through personalization and omnichannel experiences.
Recent Acquisitions (2021-2023):
- RTFKT Studios (Dec 2021): A virtual sneaker and collectibles company, marking Nike's entry into the metaverse.
- DVS Shoe Company (Aug 2022): A skateboard footwear brand, strengthening Nike's presence in the skateboarding market.
- The Fabricant (Feb 2023): A digital fashion house, further accelerating Nike's exploration of the digital fashion space.
These acquisitions demonstrate Nike's commitment to staying ahead of industry trends and expanding into new growth areas.
AI-Based Fundamental Rating:
- According to an AI-based analysis, Nike receives a fundamental rating of 8.5 out of 10.
- This rating considers various factors including financial strength, market position, growth prospects, and competitive advantages.
- The strong brand equity, consistent financial performance, and growth initiatives contribute to a positive outlook for Nike's future.
Sources and Disclaimers:
- This analysis is based on information sources such as Nike's annual reports, investor presentations, industry reports, and financial news articles.
- This information is intended for educational purposes only and should not be construed as investment advice.
- Individual investors should conduct their own research and due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Nike Inc
Exchange | NYSE | Headquaters | Beaverton, OR, United States |
IPO Launch date | 1980-12-02 | CEO, President & Director | Mr. Elliott J. Hill |
Sector | Consumer Cyclical | Website | https://www.nike.com |
Industry | Footwear & Accessories | Full time employees | 79400 |
Headquaters | Beaverton, OR, United States | ||
CEO, President & Director | Mr. Elliott J. Hill | ||
Website | https://www.nike.com | ||
Website | https://www.nike.com | ||
Full time employees | 79400 |
NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the NIKE, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks; and operates digital platforms, including fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was founded in 1964 and is headquartered in Beaverton, Oregon.
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