Nike: Turning Cautiously Positive In The Long Term


  • Nike’s opportunities in emerging markets should enable high levels of growth as more regions enter the middle class.
  • Nike’s competitive advantage, based on its brand and cost advantages, has proven to be secure despite significant competition.
  • Nike’s direct-to-consumer model has diminished wholesale redundancies and image diminishment and brings the Nike brand closer to the customer.
  • Supply chain/inventory-based headwinds should peter out as COVID protocols loosen.

Large NIKE store at night with many people‘s silhouette

Robert Way

Investment Thesis:

NIKE (NYSE:NKE) has been the leader in the athletic apparel market for years, and it is my belief that Nike’s moat, consumer plan, and potential in developing markets justify a BUY in NKE.



A chart which shows Nike's historical P/E ratio since 2018


Total Revenue TTM Price/Earnings EBITDA TTM Debt/Assets TTM Operating Margin TTM Return on Equity TTM
NIKE (NKE) $49,107,000 35.77 $7,602,000 .32 12.99% 37.01%
Under Armor (UA) $5,753,092 38.90 $334,306 .32 4.60% 8.16%
adidas (OTCQX:ADDYY) $24,283,210 33.09 $3,074,892 .27 6.51% 12.51%
Skechers U.S.A. (SKX) $7,195,992 10.45 $654,193 .24 7.69% 23.23%
ASICS (OTCPK:ASCCF) $3,576,783 37.90 N/A .27 4.99% 8.10%

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NKE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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