The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 19.6x | 20.8x | Around median | |
Growth | 18 | 0.2% | 6.1% | Bottom tier | |
Quality | 72 | 19.6% | 6.6% | Top tier | |
Safety | 76 | 0.6x | 0.7x | Top tier | |
Capital Return | 35 | 3.91% | 2.02% | Bottom tier | |
Momentum | 9 | -27.7% | 4.1% | Bottom tier | |
Sentiment | 83 | 26 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NIKE, Inc. (NYSE: NKE) is the global leader in the design, development, marketing, and distribution of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities. The company relies on an integrated business model to generate revenue, blending two primary channels: the direct-to-consumer channel (NIKE Direct), which includes company-owned stores and digital platforms, and the wholesale channel (Wholesale), which feeds a vast network of global partners and distributors, in addition to licensing its affiliate brands such as Converse and Jordan.
During the third quarter of fiscal 2026, the company achieved revenues of $11.3 billion, representing flat performance on a reported basis and a 3% decline on a currency-neutral basis compared to the same period last year. The company recorded a gross profit of $4.5 billion, while net income reached $520.0 million, resulting in diluted earnings per share of $0.35. Gross margins were negatively impacted, declining by 130 basis points to 40.2%, primarily due to a 300 basis point drag resulting from higher tariffs in the North American market.
On a channel and geographic segment level, NIKE Direct sales declined by 7%, with NIKE Digital sales down 9% and physical store sales down 5%, while the wholesale channel registered a slight growth of 1%. Geographically, North America led performance with revenue growth of 3% (with an 11% jump in wholesale sales), while revenues in Europe, Middle East, and Africa (EMEA) declined by 7%, and fell in Greater China by 10% as a result of strict measures to rebalance distribution channels and clear unhealthy inventory.
NIKE, Inc. stock is currently trading within a 52-week range of $41.35 to $80.17. Compared to the analyst average target price of $64.13, the stock is trading at levels reflecting a general consensus recommendation of 'Buy'. The company's market capitalization is approximately $67.1 billion, and with a trailing twelve-month (TTM) net income of $2.8 billion, investors are anticipating the positive inflection point in margins expected in the second quarter of fiscal 2027 as a key driver to push the stock toward the high analyst target of $110.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The Win Now strategy is a deliberate action plan aimed at improving the health and quality of NIKE's business fundamentals by removing unhealthy inventory of classic footwear products from the market and focusing on athlete-led sports innovation. The company expects to fully complete these measures by the end of the current calendar year 2026, at which point legacy inventory levels will be healthy, allowing design teams to consistently introduce innovative and compelling products across all sport and street categories.
High tariffs in North America caused significant pressure on the company's profitability, leading to a 300 basis point decline in the consolidated gross margin and approximately 650 basis point decline in the North America segment during the third quarter of fiscal 2026. Management expects the second quarter of fiscal 2027 to be the final quarter in which these tariffs pose a material year-over-year headwind, with gross margins beginning to expand gradually thereafter as a result of mitigation measures.
This $230 million charge is due to employee severance costs as part of a restructuring plan to reduce the fixed cost base in the supply chain and technology sectors, in addition to adjusting operational costs in the Converse brand. This step aims to transform NIKE's supply chain network to become variable-cost-based rather than the high fixed structure accumulated during the pandemic to support digital direct-to-consumer growth, with the financial benefits of these actions expected to appear in fiscal 2027 and increase during 2028.
Automated analysis for informational purposes only — not investment advice.
NIKE expects fourth-quarter revenue to decline by 2% to 4%, driven primarily by an expected decline of approximately 20% in Greater China and a decline in the Converse brand, offset by modest growth in North America. The company also anticipates a sequential decline in gross margin ranging from 25 to 75 basis points, which includes a negative impact of 250 basis points due to tariffs in North America, with selling, general, and administrative (SG&A) expenses remaining stable.
NIKE plans to leverage the 2026 FIFA World Cup to energize the global football market by launching the upgraded Tiempo boot in the third quarter and unveiling new material technologies in June. The company will also introduce AeroFit apparel kits for partner national teams, featuring a 200% increase in airflow compared to standard Dri-FIT technology, in addition to updating and developing retail presentations in over 5,000 dedicated football doors globally in collaboration with wholesale partners and direct channels.