With pretty conservative estimates I am seeing Nike hitting at least $100 roughly in 3 years. However this is with a revenue growth of 2%. I believe that leadership can help get that number closer to 5% within the next 2 years however, and that also is a conservative number. Nike is a staple brand that has been in a rough patch consequent of poor decisions within the company. However I really do feel like they can turn things around. For the stock to be worth it to me they would need to hit $103.68 in 3 years which would equate to a 20% annual return. Which when I look at everything and especially their high ROE I feel very comfortable that Nike can slowly inch towards that, honestly I see them being closer to $120 within 3 years. They have a very solid DCF value of $82.02 and also a very low PE considering their 10 year average. So if leadership can take the reigns I believe that this stock will slowly start to roll. At the very least it is a very solid dividend with it returning around 2%/year.
PE: 20.16 (10 Year Avg. 34.95)
ROE: 39.5%
Gross Profit Ratio: 44.56%
Net Income Ratio: 11.10%
ROIC: 19.63%
Revenue/Share: $33.84
Net Income/Share: $3.76
Cash/Share: $7.63
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The user Zwfis has a position in NYSE:NKE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
