Consider This Before Taking a Position in Nike (NKE)

Shares of Large-cap consumer discretionary company Nike moved -0.1 this evening, and are now trading at $95.79 per share. On the other hand, the average analyst target price for the stock is $119.37.

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide.

Potential Nike Investors Should Analyze the Following:

  • Nike has moved 7.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 1.76. A number between 0 and 1 could mean that the market is undervaluing Nike's estimated growth potential

  • Its Price to Book (P/B) ratio is 10.48

  • Nike currently returns an annual dividend yield of 1.4%.

Understanding Nike's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-07-21 46,710,000 -14,804,000 14 -12.5
2021-07-20 44,538,000 -13,025,000 16 100.0
2020-07-24 37,403,000 -13,126,000 8 -33.33
2019-07-23 39,117,000 -12,702,000 12 0.0
2018-07-25 36,397,000 -11,511,000 12 -14.29
2017-07-20 34,350,000 -10,563,000 14

Over the last 6 years, Nike's operating margins have averaged 12.7%, which is comparable to the Footwear & Accessories industry average of 12.86%. The firm's margins exhibit a relatively stable growth trend of 0.3%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.