Yahoo Finance Should You Be Holding NIKE Inc (NYSE:NKE)?
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on NIKE Inc (NYSE:NKE) due to its excellent fundamentals in more than one area. NKE is a financially-robust company with a an impressive history of dividend payments and a buoyant future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on NIKE here.
High growth potential with excellent balance sheet and pays a dividend
NKE’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 58.03% in the upcoming year. This underlies the notable 46.51% return on equity over the next few years leading up to 2021. NKE’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that NKE has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. NKE seems to have put its debt to good use, generating operating cash levels of 0.99x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Income investors would also be happy to know that NKE is a great dividend company, with a current yield standing at 1.08%. NKE has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For NIKE, there are three important factors you should further research:
Historical Performance: What has NKE’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is NKE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NKE is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NKE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
