What moat does NIKE have?

The advantage is the customer who already asks for that brand and the wholesaler who already gives it the shelf. The shelf can be given away. The moat narrows if the shoes have to be marked down, or if the sponsorship does not turn into a sale.

How do you read the NIKE radar?

Health is debt against shoe and apparel inventory, not against an athlete. Quality is the margin after the markdown and the sponsorship. Growth follows pairs sold in the company's channel and at wholesale, and they need not rise together. P/E is read against a strong fashion year, not against that year as normal. Shareholder return is the dividend, checked against cash. Do not read it as a brand that does not compete.

Which multiples matter for NIKE?

The P/E of a year without markdowns is not the earnings when inventory does not sell. EV/EBITDA is read with the sponsorship inside, which is a cost. Do not use Adidas's multiple as if the two brands were the same book, or a single running shoe's. A dash if the NKE cache is cold.

What does this NIKE analysis leave out?

Not advice on Nike. Vaultflake does not state a premium price or treat the brand as the undisputed leader. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

NIKE (NKE) analysis

NIKE, Inc.

Sector:Consumer Discretionary · Athletic Footwear and Apparel

Country:United States

Profile and moat

Nike sells athletic shoes and clothes. Adidas sells into the same use, and so do On and HOKA. It is not the undisputed leader. Sponsoring an athlete is a cost. The athlete can leave. This report does not state a premium price already measured.

It sells in its own channel and through wholesalers. If the pair does not sell, there is a markdown, and the markdown takes the margin. A strong fashion year is not normal earnings. One market, China or another, can slow.

Cash is that sale minus the inventory and the sponsorship. The dividend has to fit. It is not a brand that charges what it wants.

Sustainable Competitive Advantage

NIKE (NKE) analysis

NIKE, Inc.

Sector:Consumer Discretionary · Athletic Footwear and Apparel

Country:United States

Profile and moat

Cash is that sale minus the inventory and the sponsorship. The dividend has to fit. It is not a brand that charges what it wants.

Sustainable Competitive Advantage

NIKE (NKE) analysis

Profile and moat

NIKE (NKE) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does NIKE have?

How do you read the NIKE radar?

Which multiples matter for NIKE?

What does this NIKE analysis leave out?

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