Added to YB: 2024-07-02
Pitch date: 2024-06-30
NKE [bearish]
NIKE, Inc.
+7.66%
current return
Author Info
Kroker Equity Research is a value investor that uses Discounted Cash Flow (DCF) Model or the Excess Returns Model to value stocks. Sign up for their newsletter.
Company Info
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic and casual footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America.
Market Cap
$97.4B
Pitch Price
$73.07
Price Target
54.00 (-20%)
Dividend
2.49%
EV/EBITDA
18.83
P/E
33.81
EV/Sales
2.15
Sector
Textiles, Apparel and Luxury Goods
Category
value
NIKE Stock Valuation Update
NKE: Q4 rev -2%, FY24 +1%. Margins improved but DTC -8%, NA demand down. FY25 outlook negative. Wholesale +8% key strategy. FCF strong at $4.87B (9.67% margin). 3.1% 5yr CAGR projected. DCF fair value $54/share vs $75 current. Bull case $65, bear $53. P/E and EV/EBIT high. Faces competition, DTC struggles. Long-term potential but overvalued now.
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