In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It" and the Swoosh logo.
Nike, Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in eight categories, including running, basketball, football, men’s training, women’s training, sportswear, action sports, and golf under the NIKE and Jordan brand names. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, the company sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs, and other equipment under the NIKE brand name for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark. NIKE, Inc. sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores and Internet Websites (direct to consumer operations), as well as a mix of independent distributors and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
(Summary) (Company) (Chart)
26 June 2016
1yr Target $71.05
Payout Ratio 29.62%
1yr Cap Gain 35.10%
1yr Tot Return 36.31%
EPS (ttm) $2.16
EPS next yr $2.46
Forward P/E 21.40
EPS next 5yr 14.49%
1yr Price Support $34.90
Market Cap $88.60 Bil
Revenues $31.91 Bil
Earnings $3.78 Bil
Profit Margin 11.84%
Quick Ratio 2.10
Current Ratio 3.10
1yr RevGR 10.07%
3yr RevGR 9.36%
5yr RevGR 9.98%
1yr EarnGR 24.57%
3yr EarnGR 16.15%
5yr EarnGR 13.90%
1yr DivGR 16.12%
3yr DivGR 15.60%
5yr DivGR 15.30%
The Nike Brand product offerings are focused in eight key categories: Running, Basketball, Soccer, Men’s Training, Women’s Training, Action Sports, Sportswear and Golf. Basketball includes the Jordan Brand product offerings and Men’s Training includes the baseball and American football product offerings. They also market products designed for kids, as well as for other athletic and recreational uses such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities.
Nike’s athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. The company places considerable emphasis on high-quality construction and innovation in their products. Sportswear, Running, Basketball and Soccer are currently the company's top-selling footwear categories.
Nike sell sports apparel covering most of the above-mentioned categories, which feature the same trademarks and are sold predominantly through the same marketing and distribution channels as athletic footwear. Our sports apparel, similar to our athletic footwear products, is designed primarily for athletic use and exemplifies our commitment to innovation and high-quality construction. Sportswear, Men’s Training, Running and Football (Soccer) are currently our top-selling apparel categories and we expect them to continue to lead in apparel sales. We often market footwear, apparel and accessories in “collections” of similar use or by category. We also market apparel with licensed college and professional team and league logos.
Nike sells a line of performance equipment and accessories under the Nike Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, golf clubs and other equipment designed for sports activities. They also sell small amounts of various plastic products to other manufacturers through their wholly owned subsidiary, Nike Ihm, Inc.
The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on Basketball using the Jumpman trademark. Sales and operating results for the Jordan Brand are included within the Nike Brand Basketball category and within the respective Nike Brand geographic operating segments.
One of the company's wholly owned subsidiary brands, Hurley, headquartered in Costa Mesa, California (“Hurley”), designs and distributes a line of action sports and youth lifestyle apparel and accessories under the Hurley trademark. Sales and operating results for Hurley are included within the Nike Brand Action Sports category and within the Nike Brand’s North America geographic operating segment, respectively.
Another wholly owned subsidiary, Converse, headquartered in Boston, Massachusetts (“Converse”), designs, distributes and licenses casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks. Operating results of the Converse brand are reported on a stand-alone basis.
I'm old enough to remember when the term "Hi-Tech" was coined to describe Nike's original running shoes. Those Nikes really were something original and redesigned a whole category of footwear. Today Nike still dominates the sports and casual wear despite a number of niche producers. Nike's closest rival is probably Under Armor and it's only half Nike's size.
I love the fundamentals on this company. The revenue, earnings, and dividend growth rates are excellent and the company's liability coverage and debt to equity ratio is about as good as it gets. Nike really seems like one of those companies that everyone should have in their portfolio.
The only drawback that I can see is the price. But that's easily understood when you start to realize how much this company has dominated it market. From my perspective, I'd like to buy these shares at a Forward P/E ratio nearer to 20 which would put the price just above $49 per share. Under normal conditions it would be obvious that this stock is already oversold at its current price and probably wouldn't fall below $50 per share. But we're dealing with BREXIT right now and the entire market may be going lower.
In that case, if Nike falls below $50 per share I'll initiate a buying program and start a position in this company. Normal accumulation rules will be put in place which is composed of buying a relatively small amount, adding to that position with dividend reinvestment, the sale of call options, and additional buys as the stock chart dictates. Nike is a rock solid company and I think in the future it will contribute a nice stream of income into my accounts.