NKENKE
US • —
$41.05
P/E
27.00
PEG
—
FCF Yield
—
Rev Growth YoY
-2.7% YoY
Gross Margin
40.8%
Health Score
7/10
D/E Ratio
0.60
Confidence
LOW
Business Snapshot
Nike is a global leader in athletic footwear, apparel, and equipment, generating revenue primarily through its NIKE-branded products, Jordan Brand, and its direct-to-consumer sales channels. The company operates in the highly competitive athletic apparel and footwear market, maintaining a dominant position against rivals such as Adidas and Under Armour through strong brand equity and innovative product cycles. Financial scale details such as market cap and TTM revenue are not available in the provided data. A defining characteristic of Nike is its immense brand power and global marketing presence, which provides a significant competitive moat in the consumer discretionary sector.
Financial Health
Nike’s gross margin stands at 40.8%, though a prior-year comparison is unavailable to determine the trend. The net margin of 4.8% provides a baseline view of profitability after all expenses...
Risk Assessment
- VALUATION — P/E of 27.0x trades at a premium to the sector average of 22x, which appears stretched given negative earnings growth.
- EARNINGS QUALITY — While earnings have declined 49.4% YoY, the consistent earnings beats (4/4 quarters) suggest management guidance is conservative, not that underlying business quality is high.
- REVENUE DECELERATION — Revenue is contracting at -2.7% YoY, a clear signal of top-line weakness.
- VALUATION DIVERGENCE — Both FMP and Python DCF fair values are unavailable due to negative or unavailable free cash flow, making a fundamental intrinsic value assessment impossible.
- FCF / CASH BURN — Free cash flow is unavailable in the provided data, preventing a cash burn analysis....
Nike’s gross margin stands at 40.8%, though a prior-year comparison is unavailable to determine the trend. The net margin of 4.8% provides a baseline view of profitability after all expenses. The balance sheet appears healthy, with a debt-to-equity ratio of 0.6x and a strong current ratio of 2.21x, indicating solid liquidity and manageable leverage. Return on equity is a robust 16.4%, suggesting effective capital allocation. Overall, Nike’s financial health is stable, supported by a strong balance sheet and decent profitability, though the lack of free cash flow data limits a full assessment of cash generation and dividend or reinvestment capacity.
- VALUATION — P/E of 27.0x trades at a premium to the sector average of 22x, which appears stretched given negative earnings growth. - EARNINGS QUALITY — While earnings have declined 49.4% YoY, the consistent earnings beats (4/4 quarters) suggest management guidance is conservative, not that underlying business quality is high. - REVENUE DECELERATION — Revenue is contracting at -2.7% YoY, a clear signal of top-line weakness. - VALUATION DIVERGENCE — Both FMP and Python DCF fair values are unavailable due to negative or unavailable free cash flow, making a fundamental intrinsic value assessment impossible. - FCF / CASH BURN — Free cash flow is unavailable in the provided data, preventing a cash burn analysis.
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