Nike Inc (NKE) Stock Analysis
Verdict: AVOID
Market share loss to agile peers and weak China demand undercut Nike\'s turnaround, making its valuation premium to higher-margin peers unearned.
Investment score: 37/100
Analysis as of
Is Nike Inc stock worth reviewing? AI model thesis
Nike Inc is facing structural headwinds as top-line contraction, margin erosion, and brand share loss in running and soccer negate near-term turnaround catalysts. With underlying earnings distorted by temporary tariff refunds and executive insider selling persisting, the model advises staying on the sidelines until clear evidence of organic revenue recovery emerges.
7-factor investment score
- Valuation: 38/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 50/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
Nike Inc opportunities and risks
What speaks for NKE
- Wholesale Channel Realignment and Retailer Relationship Repair
What speaks against NKE
- Escalating Brand Erosion and Endorsement Defections
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NKE | 16.2x | 1.1x | 12.3x | 43.1% | 6.7% | 4.2% |
| DECK | 11.2x | 1.9x | 6.9x | 57.8% | 18.4% | 11.2% |
| CROX | 10.1x | 1.4x | 8.1x | 57.5% | 14.6% | 12.4% |
| SHOO | 22.8x | 1.2x | 15.0x | 46.1% | 5.2% | 6.5% |
| WWW | 14.8x | 0.8x | 11.2x | 47.0% | 5.5% | 11.1% |
| RCKY | 12.2x | 0.7x | 7.8x | 42.2% | 5.7% | 4.7% |
| Peer median | 12.2x | 1.2x | 8.1x | 47.0% | 5.7% | 11.1% |
Frequently asked questions about Nike Inc (NKE)
Is NKE stock a good investment?
The cached TradeMates AI model rates Nike Inc as AVOID with an investment score of 37/100. Nike Inc is facing structural headwinds as top-line contraction, margin erosion, and brand share loss in running and soccer negate near-term turnaround catalysts. With underlying earnings distorted by temporary tariff refunds and executive insider selling persisting, the model advises staying on the sidelines until clear evidence of organic revenue recovery emerges. This is algorithmic model output, not personal investment advice.
Is NKE stock a buy?
The TradeMates model verdict for NKE is AVOID with an investment score of 37/100. Treat this as a model signal to review, not a personal buy recommendation.