Nike Inc (NKE, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With a current share price of $93.33, Nike Inc has experienced a slight daily decrease of 0.13%, amidst a three-month decline of -9.95%. However, a detailed analysis based on the GF Score indicates that Nike Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks across five key valuation aspects. This system has proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Nike Inc boasts a GF Score of 93, signaling strong future performance prospects.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 9/10
- GF Value rank: 8/10
- Momentum rank: 5/10
Understanding Nike Inc's Business
Nike Inc, with a market cap of $140.87 billion and annual sales of $51.58 billion, is the world's largest athletic footwear and apparel brand. Key product categories include basketball, running, and football (soccer), with footwear accounting for about two-thirds of its sales. Nike operates globally through a mix of company-owned and franchised stores, alongside third-party retailers and extensive e-commerce platforms in over 40 countries. Founded in 1964 and headquartered in Beaverton, Oregon, Nike outsources nearly all its production to contract manufacturers across more than 30 countries.
Financial Strength and Stability
Nike Inc's financial robustness is reflected in its Financial Strength rating and an impressive Altman Z-Score of 6.13, indicating a strong buffer against financial distress. Additionally, its strategic debt management is evidenced by a favorable Debt-to-Revenue ratio of 0.24.
Profitability and Growth Metrics
Nike Inc stands out with a top-tier Profitability Rank and a Predictability Rank of 5.0 stars, underscoring its consistent operational performance. The company's commitment to growth is evident in its 11.6% 3-Year Revenue Growth Rate, surpassing 65.47% of peers in the Manufacturing - Apparel & Accessories industry. This growth trajectory is further highlighted by a significant increase in EBITDA over recent years.
Conclusion
Considering Nike Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with high GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
