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Why We Think NIKE, Inc. (NYSE:NKE) Could Be Worth Looking At

Simply Wall St

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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-healthy , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on NIKE here.

Excellent balance sheet with solid track record and pays a dividend

NKE delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 47% return to shareholders, which is an notable feat for the company. NKE is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that NKE has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. NKE's has produced operating cash levels of 1.69x total debt over the past year, which implies that NKE's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:NKE Income Statement, April 6th 2019

For those seeking income streams from their portfolio, NKE is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.0%.

NYSE:NKE Historical Dividend Yield, April 6th 2019

Next Steps:

For NIKE, I've put together three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for NKE’s future growth? Take a look at our free research report of analyst consensus for NKE’s outlook.
  2. 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.
  3. 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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.