Nike Stock Analysis, Valuation (NYSE:NKE)
View the Nike stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for NKE stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Nike Inc Stock Rating 3/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for NKE stock analysis. Nike valuation forms a crucial part of our stock analysis. Our Nike stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy NKE stock?
- Nike's revenue growth came in at 12.8% in 2018-05.
- Nike's average operating margin of 12.21 was exceptional.
- LTM Net margins were good at 5.3% for Nike.
- With a debt/equity ratio of 0.39, Nike is comparatively less leveraged than its peers in the Consumer Discretionary sector.
- Nike generates a high return on invested capital of 21.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Nike at 17.3.
Should you sell NKE stock?
- Trading at a PE ratio of 32.3, NKE stock is overvalued in comparison to sector average multiple of 22.8.
- The company is trading at a price to sales multiple of 3.4, which is overvalued in comparison to the Consumer Discretionary sector average multiple of 1.6.
Investors can make use of the Amigobulls Nike stock analysis to ascertain how NKE stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.
Nike revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about NKE stock.