From Morningstar: 2024-10-04 06:40:00

Nike, a leader in athletic apparel, faces challenges like lack of innovation and soft demand. Despite this, it dominates the athletic footwear market and maintains premium pricing. Fair value estimate is $117 with a wide moat rating. Financially strong, Nike has $10.3 billion in cash and short-term investments, exceeding its debt of $9 billion. Nike expects to generate $27 billion in free cash flow over the next five years and aims to repurchase about $16 billion in stock. Nike has a wide economic moat based on its strong brand intangible asset. Its global market share is double that of its closest competitor. Despite competition, Nike’s innovation and popularity help it maintain its leading market positions.

Nike’s stock has a fair value estimate of $117, with a wide moat rating. Despite challenges, it dominates the athletic footwear market and maintains premium pricing. Financially strong, Nike has $10.3 billion in cash, short-term investments, and undrawn credit facilities. It aims to generate $27 billion in free cash flow over the next five years and repurchase about $16 billion in stock. Nike has a wide economic moat based on its strong brand intangible asset and global market dominance. Its global market share is double that of its closest competitor. Despite competition, Nike’s innovation and popularity help it maintain its leading market positions.



Read more at Morningstar: Nike Can Overcome Its Current Problems