Should you buy Nike stock? (July 2024)

Published first at https://www.3minutebreakdowns.com Nike stock analysis. Ticker: $NKE Nike shares plunged to another new low today taking the stock back to levels last seen during the pandemic. At the latest price, the company has a market cap of 111 billion dollars. With 11.6 billion of cash on the balance sheet and 7.9 billion of long term debt, the enterprise value is 107.3 billion. Revenue over the last 12 months comes to 51.4 billion with 5.7 billion of net income and 7.5 billion of ebitda. So Nike stock is now valued at 20 times earnings and 14 times ebitda. There’s no doubt, that’s a cheap valuation for Nike. The stock hasn’t had a PE ratio this low since 2012. But just because the PE ratio is low doesn’t necessarily mean Nike is a buy. The company is clearly going through some issues right now with revenue increasing by just 1% last year. And the company’s outlook for next quarter is for sales to decline by 10%. One of the most concerning aspects of Nike’s performance is the company’s results in North America. Footwear sales in the US, which is the company’s biggest segment, declined 6% in the most recent quarter and 2% for the whole year. Direct to consumer sales were down 8% and Digital sales fell 10%. #investing #stocks #nikestock #3mb