Morningstar

Nike Inc Class B NKE

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Stock XNYS Rating as of
$82.25 +0.15 (0.18%)
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As of Delayed Price Closed

Company Report

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Nike’s Competitive Advantages Should Allow It to Overcome Current Challenges

David Swartz

We view Nike as the leader of the athletic apparel market and believe it will recover from its recent problems, such as a lack of product innovation, soft demand for sportswear, and a CEO change. 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.

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Price vs Fair Value

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NKE is trading at a 284% premium.
Price
$82.25
Fair Value
$929.00
Uncertainty
Medium
1-Star Price
$796.51
5-Star Price
$32.10
Economic Moat
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Capital Allocation
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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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Trading Information

Previous Close Price
$82.10
Day Range
$82.10–83.54
52-Week Range
$70.75–123.39
Bid/Ask
$82.20 / $82.35
Market Cap
$123.32 Bil
Volume/Avg
10.3 Mil / 13.8 Mil

Key Statistics

Price/Earnings (Normalized)
20.77
Price/Sales
2.50
Dividend Yield (Trailing)
1.80%
Dividend Yield (Forward)
1.80%
Total Yield
5.25%

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
79,400
Website
https://www.nike.com

Competitors

Valuation

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Metric
NKE
LULU
UAA
Price/Earnings (Normalized)
 20.7720.0115.70
Price/Book Value
 8.848.302.10
Price/Sales
 2.503.410.71
Price/Cash Flow
 18.7415.7131.45
Price/Earnings
NKE
LULU
UAA

Financial Strength

Metric
NKE
LULU
UAA
Quick Ratio
 1.511.330.91
Current Ratio
 2.402.431.73
Interest Coverage
 ———
Quick Ratio
NKE
LULU
UAA

Profitability

Metric
NKE
LULU
UAA
Return on Assets (Normalized)
 16.76%26.84%−0.33%
Return on Equity (Normalized)
 44.27%44.88%−0.79%
Return on Invested Capital (Normalized)
 23.34%33.51%−0.56%
Return on Assets
NKE
LULU
UAA

Footwear & Accessories Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
adidas AG
ADDDF
KCShspkp$46.9 Bil
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ADDYY
BdjcfcxjZrxnz$46.9 Bil
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—Zkch$25.4 Bil
 On Holding AG
ONON
—Lhfwgz$16.6 Bil
 ASICS Corp ADR
ASCCY
—Vkbgh$14.1 Bil
 ASICS Corp
ASCCF
—Wky$14.1 Bil
 Skechers USA Inc Class A
SKX
StbdynvxnPpnpcz$10.4 Bil
 Birkenstock Holding PLC
BIRK
—Yxnlvkm$9.2 Bil
 Crocs Inc
CROX
—Hgyt$8.4 Bil

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