NIKE, Inc. [NYSE:NKE]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to NIKE, Inc. [NKE], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of May. On average, stock market experts give NKE an Outperform rating. Its stock price has been found in the range of 64.99 to 88.59. This is compared to its latest closing price of $86.83.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for NIKE, Inc. [NKE] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 1.94.
For the quarter ending in Feb-19 NIKE, Inc. [NKE] generated $9.61 billion in sales. That’s 0.01% lower than the average estimate of $9.61 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Thu 27 Jun (In 72 Days).
Fundamental Analysis of NIKE, Inc. [NKE]
Now let’s turn to look at profitability: with a current Operating Margin for NIKE, Inc. [NKE] sitting at +12.38 and its Gross Margin at +44.03, this company’s Net Margin is now 10.80%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 30.17, and its Return on Invested Capital has reached 30.00%. Its Return on Equity is 17.40, and its Return on Assets is 8.44. These metrics all suggest that NIKE, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, NIKE, Inc. [NKE] has generated a Total Debt to Total Equity ratio of 38.83. Similarly, its Total Debt to Total Capital is 27.97, while its Total Debt to Total Assets stands at 16.91. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 35.34, and its Long-Term Debt to Total Capital is 25.46. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 25.34 and its Total Debt to EBITDA Value is 0.73. The Enterprise Value to Sales for this firm is now 3.44, and its Total Debt to Enterprise Value stands at 0.03. NIKE, Inc. [NKE] has a Price to Book Ratio of 11.72, a Price to Cash Flow Ratio of 24.04 and P/E Ratio of 34.24. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, NIKE, Inc. [NKE] earns $497,442 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 10.14 and its Total Asset Turnover is 1.59. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.63 and its Current Ratio is 2.51. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
NIKE, Inc. [NKE] has 1.57B shares outstanding, amounting to a total market cap of $137.99B. Its stock price has been found in the range of 64.99 to 88.59. At its current price, it has moved by -0.89% from its 52-week high, and it has moved 35.10% from its 52-week low.
This stock’s Beta value is currently 0.66, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 62.58. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is NIKE, Inc. [NKE] a Reliable Buy?
NIKE, Inc. [NKE] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.