Nike Inc ($NKE) Cautious Buy or Hold to $67 Confident Investor Rating: Fair
Company name | Nike Inc |
Stock ticker | NKE |
Live stock price | [stckqut]NKE[/stckqut] |
P/E compared to competitors | Good |
MANAGEMENT EXECUTION
Employee productivity | Good |
Sales growth | Poor |
EPS growth | Fair |
P/E growth | Poor |
EBIT growth | Fair |
ANALYSIS
Confident Investor Rating | Fair |
Target stock price (TWCA growth scenario) | $65.65 |
Target stock price (averages with growth) | $77.19 |
Target stock price (averages with no growth) | $60.66 |
Target stock price (manual assumptions) | $68.79 |
The following company description is from Google Finance: http://www.google.com/finance?q=nke
NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of independent distributors and licensees, in approximately 190 countries around the world. The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, NIKE Sportswear (its sports-inspired products) and Action Sports. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. In February 2013, it sold its Cole Haan affiliate brand to APAX Partners LLP.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $66.82
Growth: 0.105
Current EPS (TTM): $2.69
P/E: 25
Future EPS Calc: $4.43
Future Stock Price Calc: $110.79
Target stock price: $68.79
I hope that this makes you a better investor. [/s2If]