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NIKE

NKE
44
Apparel - Footwear & Accessories · Consumer Cyclical
Price
$43.76
-0.81 (-1.82%)
Market Cap
$64.76B
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

7.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.61B (2022) → 1.48B (2026)

NIKE designs and sells athletic shoes, clothing, and sports equipment for people of all ages around the world. Its most famous products include running shoes, basketball sneakers, and sportswear under the NIKE and Jordan Brand names, with Converse as another owned brand. NIKE is the largest athletic footwear and apparel company in the world, selling to everyday consumers, professional athletes, and sports teams.

NIKE makes money by selling products through its own stores, its website, and third-party retailers like Foot Locker and department stores. It operates globally, with major revenue coming from North America, Europe, and Greater China, generating roughly $50 billion in annual sales. NIKE's main competitive advantages are its brand recognition and long-term endorsement deals with athletes like LeBron James and Cristiano Ronaldo, but the company currently faces pressure from rising competition from brands like On Running and Hoka, along with weak consumer spending in key markets.

Winston Score History

Politician Trades

21 trades / 12mo

10 Congressional buys and 11 sells on NKE in the last 12 months.

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Score breakdown

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Quality

Gross Margin
40.2%
Healthy — 40.2% gross margin
Operating Margin
4.9%
Thin — 4.9% operating margin
ROCE
2.2%
Weak — 2.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-6.2%
Shrinking sales (-6.2% YoY)
EPS YoY
-48.2%
Earnings shrinking (-48.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
141%
Turns 141% of profit into real cash
FCF Margin
6.0%
Thin free cash flow (6.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.79
Moderate — manageable debt (0.79)
Interest Cover
6.23x
Adequate interest coverage (6.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
27.9x
Growth-priced — P/E 27.9

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+10.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.9 → 17.6)

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Dividends

Dividend Yield
4.00%
Healthy income — 4.00% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+3.8%
Dividend growing modestly (3.8% YoY)

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