Professional
Added to YB: 2026-10-15
Pitch date: 2026-10-12
NKE [neutral]
NIKE, Inc.
+4.62%
current return
Author Info
M Squared Capital is a former sell-side analyst in the Retail/Consumer industry sharing analysis on retail/consumer stocks. Sign up for the newsletter.
Company Info
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America.
Market Cap
$52.5B
Pitch Price
$35.50
Price Target
N/A
Dividend
4.64%
EV/EBITDA
9.13
P/E
16.92
EV/Sales
1.20
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Upon Further Review: Nike (10/12/26)
NKE (update): Nike still prices in a growth recovery at ~25x consensus earnings, roughly twice athletic peers; without meaningful growth, investors effectively pay the industry valuation but wait five years for the same earnings. FY27 EPS is estimated at $1.20-$1.45 versus $1.35 consensus, while marketplace inventory pressures orders and markdown support. Pace targets $2.5B of savings, mostly in FY29-FY30, but reinvestment and unresolved weakness in Sportswear, Jordan and China limit the benefit; meaningful near-term upside could signal inadequate restructuring. The dividend yield likely supports the premium.
Read full article (9 min)