Nike: Superior company at a fair price

Key words: Bring inspiration and innovation to every athlete in the world
Nike
Nike Inc. (NYSE:NKE)
Sector / Industry (GICS): Consumer Discretionary / Textiles, Apparel & Luxury Goods
Employees: 62 600, worldwide
Fiscal year ends: 31 May
Headquarter: One Bowerman Drive, Beaverton, Oregon
Products: Running, Basketball, Football, Men’s Training, Women’s Training, Action Sports, Sportswear and Golf.
Rating (long-term): AA- (S&P), A1 (Moody’s)
Competitors: Puma, Adidas, Under Armour, Skechers, Anta, Li Ning
Nike dividends and stock prices
Goal: deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories
businesses.

Strategy: achieve long-term revenue growth by creating innovative products, building deep personal consumer connections and delivering compelling consumer experiences at retail and online

Growth is Stable:
Gross, Operating and Net margins are superior and stable.
The company has excellent growth prospects for the foreseeable future with increasing revenue: $25 313 (2013), $27 799 (2014), $30 601 (2015).

Profitability is High-:
ROA, ROE and Free cash flow margin have improved constantly due to increased sales and higher gross margins.
Nike is a well run company that continues to reward shareholders with its profitability.

Financial health is High+:
The company manages own financial flows very well and has one of the best financial leverage.

Valuation: $55.25
Rating (Out of 10): 8.10
Growth: Stable
Profitability: High-
Financial health: High+
Stock Price: $55.22
Market Cap: $91.18b
Preferred: No
Company’s rating: 8.1
Valuation price: $55.25 => This is a true price taking into account the current market price at the same level.
Simply, a wonderful company at a fair price.
Last stock splits: 2:1 (26.12.2012), 2:1 (03.04.2007), 2:1 (24.10.1996)
Share repurchase: positive as management is committed to buying back shares

COH financial ratios

COH P/E P/B P/S

COH financials

History

1964 January 25, the company was founded as Blue Ribbon Sports, by Bill Bowerman and Phil Knight
1971 May 30, the company was formerly known as Blue Ribbon Sports and changed its name to Nike.
1971 June 18, Nike’s Swoosh was first used
1979 Nike’s Air technology patented by inventor M. Frank Rudy
1980 December 2, Nike completes an initial public offering of 2,377,000 shares of Class B common stock
1987 The Nike Air Max shoe is introduced
1988 July 1, Nike introduces its “Just Do It” slogan
1989 October 3, the “Just Do It” trademark was filed by Nike

Disclosure: Billion Trader has no positions in any stocks mentioned, the valuation is based on the own model developed and tested by Billion Trader. Billion Trader is not responsible for any loss arising from information provided.


Leave a Reply

Your email address will not be published. Required fields are marked *