Nike, Inc.(NKE) - Stock detail

Nike, Inc.

US
NKE
NIKE, Inc.(Listing date: 12/05/1980)

Nike, Inc. was incorporated in 1967 under the laws of the State of Oregon. The company's principal business activities are the design, development, and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories, and services. The company is the world's largest seller of athletic footwear and athletic apparel. The company sells its products to retail customers through Nike-owned retail stores and Internet websites, as well as through independent distributors and licensees worldwide. Virtually all of the company's products are manufactured by independent contractors. Almost all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.

AI Rating

Rating methodology
Latest close (chg%)43.81+0.18%
Buy price
45.50
Target price38.50
Sell price41.35
P/E TTM28.78
P/E28.79
Confidence75%
Risk score65/100
AI Summary
The committee finds the conservative arguments most persuasive: severe fundamental deterioration (32% net income decline, five consecutive quarters of margin erosion), a conclusive technical breakdown with institutional capitulation, and an asymmetrically negative risk/reward profile. Nike's strong brand is insufficient to offset near-term operational and valuation risks, especially ahead of a high-stakes Q4 earnings report.

Alpha Score

0-10
  • Trend（Score 2/10）

    Nike's stock (NKE) exhibits the technical characteristics of a security under sustained selling pressure with a high probability of continued underperformance in the near term.

  • Valuation（Score 3/10）

    Nike appears overvalued based on current earnings, with a high P/E ratio of 28.78 and P/B ratio of 4.60. The stock has experienced a significant price decline from highs near $57.60 to current levels around $43.81. A more reasonable fundamental value based on earnings contraction would be in the $33.44-$38.00 range, though the brand strength may support a premium.

  • Financial strength（Score 6/10）
    Nike shows strong liquidity with a current ratio of 2.14 and quick ratio of 1.45, indicating good short-term financial flexibility. However, the company has moderate leverage with a debt-to-asset ratio of 61.98%, which introduces financial risk.
  • Profitability（Score 2/10）
    Profitability trends are concerning with clear signs of pressure. Revenue growth has stagnated with very low single-digit growth or declines, while both gross and net profit margins are under significant pressure with severe double-digit declines in net income.
  • Sentiment（Score 3/10）
    Nike faces high near-term pressure from technical breakdown, fundamental headwinds, and an upcoming Q4 earnings report, warranting a cautious hold until clearer direction emerges.
Latest price
$43.81+0.18%
Market cap64.88B
P/E TTM28.78
P/E28.79
Volume18.82M
Turnover823M