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Is this Large Market Cap Stock target price reasonable for NIKE, Inc. (NYSE:NKE)?

The company in question is, NIKE, Inc. (NYSE:NKE) currently with a stock price of 55.43 (-1.04% today). The market cap for NIKE, Inc. is 95406.87, and is in the sector Consumer Goods, and Textile – Apparel Footwear & Accessories industry. The target price for NIKE, Inc. is 65.79. Currently NIKE, Inc. is trading with a P/E of 25.95, and a forward P/E of 20.31. Average volume for NIKE, Inc. is 9467.23 and so far today it is 602231.

Performance in the last year for NIKE, Inc. has been 1.26%. For EPS growth, NIKE, Inc. has seen a growth of 16.60%, and is looking to grow in the next year to 15.01%. More long term stats show that EPS growth has been 14.10% over the last five years and could be 14.08% for the next five years. NIKE, Inc. has seen sales growth quarter over quarter at 6.00%, with EPS growth quarter over quarter at -0.10%. The 20-day simple moving average is -2.46%, with the 200-day simple moving average coming to -5.53%.

Since the IPO date for NIKE, Inc. on the 12/2/1980, NIKE, Inc. has seen performance year to date to be -9.64%. With NIKE, Inc. trading at 55.43, the dividend yield is 1.14%, and the EPS is 2.16.

So could NIKE, Inc., be undervalued? Well as said before P/E is 25.95. The PEG is 1.84, P/S is 2.95 and the P/B is at 7.68. The P/cash is 17.48, with P/free cash flow at 48.85.

NIKE, Inc. ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 1.9. This is with long term debt/equity at 0.16, and total debt/equity at 0.17.

In terms of margins, NIKE, Inc. has a gross margin of 46.20%, an operating margin of 13.90% and a profit margin of 11.60%.Payout ratio for NIKE, Inc. is 28.00%. Return on assets come to 17.50% with return on investment coming to 25.40%.

Insider ownership for NIKE, Inc., is at 2.00% and institutional ownership comes to 79.20%. Outstanding shares are at 1703.39. While shares float is 1322.57. The float short is currently 1.55%, and short ratio is 2.16.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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