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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 56.8 (-0.33% today). The market cap for NIKE, Inc. is 97040.87, and is in the sector Consumer Goods, and Textile – Apparel Footwear & Accessories industry. The target price for NIKE, Inc. is 66.22. Currently NIKE, Inc. is trading with a P/E of 26.41, and a forward P/E of 20.63. Average volume for NIKE, Inc. is 10596.16 and so far today it is 4338939.

Performance in the last year for NIKE, Inc. has been 0.95%. For EPS growth, NIKE, Inc. has seen a growth of 19.70%, and is looking to grow in the next year to 14.74%. More long term stats show that EPS growth has been 14.60% over the last five years and could be 13.78% for the next five years. NIKE, Inc. has seen sales growth quarter over quarter at 6.00%, with EPS growth quarter over quarter at 0.00%. The 20-day simple moving average is 2.18%, with the 200-day simple moving average coming to -5.47%.

Since the IPO date for NIKE, Inc. on the 12/2/1980, NIKE, Inc. has seen performance year to date to be -8.31%. With NIKE, Inc. trading at 56.8, the dividend yield is 1.12%, and the EPS is 2.16.

So could NIKE, Inc., be undervalued? Well as said before P/E is 26.41. The PEG is 1.92, P/S is 3 and the P/B is at 7.82. The P/cash is 17.78, with P/free cash flow at *TBA.

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 81.30%. Outstanding shares are at 1702.77. While shares float is 1304.7. The float short is currently 1.22%, and short ratio is 1.5.

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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