NIKE, Inc.
$43.81
+0.18%NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, 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. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company 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 formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 20.2).
Valuation inputs: P/E 20.2, earnings yield +5.0%, momentum +0.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +24.4%, ROIC +11.6%).
Profitability stack: net margin +7.0%, ROE +24.4%, ROIC +11.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +63.9%, momentum +0.2%, net margin +7.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
NIKE, Inc. Market vs Earnings Trajectory
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NIKE, Inc. Fair Value Envelope
NIKE, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
NIKE, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
NIKE, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
NIKE, Inc. Street Expectations Map
Wall Street analysts project that NKE stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 68.71, with estimates ranging from a low of 35.00 to a high of 110.00.
The consensus 1-year price target stands at 68.71, with estimates ranging from a low of 35.00 to a high of 110.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
NIKE, Inc. Insider Positioning
During the last 12 months, insiders have purchased $9.19M and sold $21.43M worth of NKE shares, resulting in $12.25M of net selling activity.
3 Months
88.1K
3.73M
0
0.00
+3.7M
+$3.73M
3-6 Months
75.1K
4.45M
9.1K
565.02K
+3.9M
+$3.88M
6-9 Months
16.1K
1.00M
91.1K
5.94M
-4.9M
-$4.93M
9-12 Months
0
0.00
201.9K
14.93M
-14.9M
-$14.93M
Top Buyers
Cook Timothy D
Director
$4.01M
Hill Elliott
Director, Officer: President & Ceo
$3.00M
Knudstorp Jorgen Vig
Director
$1.00M
Swan Robert Holmes
Director
$1.00M
Rogers John W Jr
Director
$173K
Top Sellers
Parker Mark G
Director, Officer: Executive Chairman
$20.07M
Leinwand Robert
Officer: Evp: Chief Legal Officer
$817K
Heinle Treasure
Officer: Evp: Chief People Officer
$306K
Mccartney Philip
Officer: Evp: Chief Inn,Prod&Dsg Ofcr
$244K
Insider Activity Analysis
Net Insider Sentiment
Negative insider sentiment with $12.25M net selling. Selling notably exceeds buying, warranting closer scrutiny of company fundamentals.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers vs. 4 sellers. More insiders buying than selling indicates positive sentiment.
nke Dividend History
Learning Layer
Related Guides
Build conviction on NKE by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.