What Are the Fundamentals of Nike (NKE)?

Shares of Large-cap consumer discretionary company Nike moved -1.4 this afternoon, and are now trading at $106.11 per share. On the other hand, the average analyst target price for the stock is $119.67.

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 1.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.0. 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 11.58

  • Nike currently returns an annual dividend yield of 1.3%.

Understanding Nike's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023 51,217,000 16,377,000 12 -14.29
2022 46,710,000 14,804,000 14 -6.67
2021 44,538,000 13,025,000 15 87.5
2020 37,403,000 13,126,000 8 -33.33
2019 39,117,000 12,702,000 12 0.0
2018 36,397,000 11,511,000 12

Over the last 6 years, Nike's operating margins have averaged 12.2%, which is similar to the 12.86% Footwear & Accessories industry average. We also note that the company's operating margins have a high coefficient of variability at 385.4%. The firm's margins exhibit a relatively stable growth trend of 0.2%.

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.