Nike Stock Analysis: STRONG BUY Near Their Lowest Ratios Ever? When I'm Buying $NKE Stock
Nike Stock Analysis: STRONG BUY Near Their Lowest Ratios Ever? When I'm Buying $NKE Stock 📌 Affiliate links (I get a commission if you register): • Try Seeking Alpha Premium for free for 7 days and get a $30 discount on the annual plan: https://www.sahg6dtr.com/3LPDKC1/R74QP/ • Support the channel by joining on Patreon: / investingwithandrew • Get up to 15 free stocks worth between $2 - $2,000 each and up to 8.1% APY on idle cash for 3 months with moomoo using my link: https://j.moomoo.com/01bx2U (T&C Applies) • For Europe/Australia - Join me on eToro: https://med.etoro.com/B19645_A122700_... Advert. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. After dealing with not such a friendly environment, management changes and issues especially in the US, Nike (NYSE: NKE) is at some of the lowest ratios in history right now, and it’s getting quite interesting. But, this might very likely be temporary and a majority of this could be traced back to the environment - where we see issues for everyone from L’Oreal to Lululemon and Footlocker - plus internal issues that the new CEO could change, so let’s look into them. Fundamentally, despite the issues, this remains a very solid company with good margins and very profitable. Now, it depends on if you consider a stagnating revenue in a bad environment decent or not. As I’ll show in a bit, Nike had the possibility to develop even in such an environment, but it was more of a matter of management - although recently we saw the CEO change. They can make a very solid $5-6 or even more billion per year, which is actually not bad for a $100 billion market cap, especially for Nike. At the same time, we have to realize that Nike is at less than 20x the cash flow, which is easily the lowest point since like 2010. If they manage to bring back some growth to warrant a higher ratio, this can be a really quick 50 to even 100% profit, but more on this in the valuation. Financially, we see a very good position, with the current assets pretty much covering the total liabilities. The equity really isn’t that relevant for this type of company. You know, unless they buy it and include it in the goodwill - which they didn’t - the brand for example can’t be on the balance sheet. How much is the Nike brand really worth? Nobody knows. I see recent statistics placing it at $71.6 billion, so you would suddenly be very close to the market cap now. But, it’s not really that relevant because this is more up to a buyer and that’s not very likely. Sure, maybe LVMH or L’Oreal could afford to buy it, so we can never know. Anyway, very healthy overall, so that’s definitely a plus. Other videos: Warner Bros. Discovery (WBD) Stock Analysis - • WBD Stock Analysis: Another Stock I'm... 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Seek a duly licensed professional for investment advice. DISCLAIMER 2: The links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partner websites. The video is accurate as of the posting date but may not be accurate in the future. 0:00 Nike ($NKE) Stock Review 0:25 Nike ($NKE) Stock Analysis: Financials, New CEO, China Tariffs and More 5:43 Nike ($NKE) Stock Valuation and Buying Target #stocks #investing #personalfinance #valueinvesting