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Invest Well in Nike Stock: Products, Dividend, Financial Statements, and More

2024-04-07 updated

When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include Nike stocks. However, there might still be individuals who wish to invest directly in Nike stocks. Shall we also explore a value investing approach to assess whether Nike's performance will grow in the long term?

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Q. What products and services does Nike provide?

Nike is a global sportswear and sports equipment company that creates distinctive sneakers with its unique features. Additionally, it manufactures products related to various sports and lifestyles, including basketball, soccer, running, golf, tennis, baseball, skating, and more.

Air Max
Air Max
Air Force 1
Air Force 1
Air Jordan
Air Jordan
Zoom
Zoom
  • Air Max: Nike produces a series of athletic shoes emphasizing cushioning and comfort.
  • Air Force 1: Nike creates its unique athletic shoes with a classic design.
  • Air Jordan: Nike produces a basketball shoe series in collaboration with Michael Jordan.
  • Zoom: Nike produces a running shoe series emphasizing lightweight design and responsiveness.

Q. What is Nike's competitive advantage?

  • Brand "Just Do It": The Nike logo and the "Just Do It" slogan are highly renowned, providing consumers with a positive and powerful brand image.
  • Convenience and Performance: Nike's technological innovations such as Zoom, Air (Max Air), and Nike React provide consumers with convenience and performance.
  • Collaboration with Sports Teams: Nike collaborates with various sports stars and teams, releasing signature lines for them. Through this, Nike works alongside influential figures in the sports industry and promotes the brand.

Q. Is Nike's executive CEO honest and competent?

John Donahoe
John Donahoe is the CEO of Nike.
  • He was appointed CEO of Nike in 2020.
  • He joined the company at Nike's board of directors in 2014.
  • He served as both President and CEO of ServiceNow and eBay.
  • He received an MBA from Stanford University.
  • He received a BA in Economics from Dartmouth College.

Q. What mission does Nike have for its work?

Nike's mission is to inspire and innovate for every athlete in the world. If you have a body, you are an athlete.

  • Nike helps athletes unleash their potential and helps sports continue to evolve.
  • Nike is building a culture of innovation to continuously have a positive impact with a shared purpose as a team.

Q. Is Nike's financial statements healthy?

(2024년 04월 06일 기준)

Net Profit Margin

  • Nike has earned an annual net profit equivalent to 3.88% of the current stock price.
  • It's good to see that the net profit has been growing at an annual rate of 4.60% over the past 5 years.

Total Debt

  • The debt is 170.81% of the annual net profit.
  • It would take about 2 years for the company to repay all of its debt.
  • The net profit is growing, so Nike can repay the debt faster.

Dividend

  • Nike offers a 1.67% annual dividend.
  • Over the past 5 years, the annual average dividend has grown by 10.95%.
  • Dividends are growing, which is good.

Share Buyback

  • Apple recently repurchased its own shares equivalent to 3.90% of the stock price in the past year.
  • The recent share buyback amount is 126.94% higher than the 3-year average.

Q. What is Nike's stock performance like?

  • This year's total return is -24.06%.
  • 5-year mean total return is 1.88%.

Q. When is a good time to buy and sell Nike?

If Nike is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that Nike is no longer healthy in the long run, you can consider selling.

PER

  • Current: 26.13
  • 5Y Avg: 37.74
  • Current value is lower than the average, so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.

Price/Sale Ratio

  • Current: 2.61
  • 5Y Avg: 3.81
  • Current value is lower than average so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.
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Value Investing Together is a blog and application that provides stock information for individuals interested in value investing and is not intended for investment recommendations. The information provided should only be used for reference purposes, and investment decisions should be made at one's own discretion and responsibility.