Econ The Stock Market finish it and give me the step please 200 160 100 80 60 50 40 30 20 2-for-1 Percent shares traded 30 20 10 Target Price Range 2

Econ The Stock Market finish it and give me the step please 200
160

100
80
60
50
40
30

20

2-for-1

Percent
shares
traded

30
20
10

Target Price Range
2024 2025 2026

NIKE, INC. ‘B’ NYSE-NKE 136.64 40.8 64.524.0 1.84 0.8%
TIMELINESS 3 Lowered 7/10/20
SAFETY 1 Raised 8/11/06
TECHNICAL 3 Lowered 4/16/21
BETA 1.15 (1.00 = Market)

18-Month Target Price Range
Low-High Midpoint (% to Mid)

$91-$212 $152 (10%)

2024-26 PROJECTIONS
Ann’l Total

Price Gain Return
High 175 (+30%) 7%
Low 145 (+5%) 3%
Institutional Decisions

2Q2020 3Q2020 4Q2020
to Buy 964 889 1065
to Sell 766 864 839
Hld’s(000)100581010089231023772

High: 23.1 24.6 28.7 40.1 49.9 68.2 65.4 65.2 86.0 101.8 148.0 147.1
Low: 15.2 17.4 21.3 25.7 34.9 45.3 49.0 50.3 62.1 71.2 60.0 125.4

% TOT. RETURN 3/21
THIS VL ARITH.*

STOCK INDEX
1 yr. 62.0 99.7
3 yr. 106.1 51.6
5 yr. 128.6 100.0

CAPITAL STRUCTURE as of 2/28/21
Total Debt $9416 mill. Due in 5 Yrs $4500 mill.
LT Debt $9412 mill. LT Interest $515 mill.

(44% of Capital)

Leases, Uncapitalized Annual rentals $553 mill.
No Defined Benefit Pension Plan

Preferred Stock None
Common Stock 1,579,967,074 shares
Class A shares: 305,011,252
Class B shares: 1,274,955,822

MARKET CAP: $216 billion (Large Cap)
CURRENT POSITION 2019 2020 2/28/21

($MILL.)
Cash Assets 4663 8787 12528
Receivables 4272 2749 3669
Inventory (LIFO) 5622 7367 6693
Other 1968 1653 1810
Current Assets 16525 20556 24700
Accts Payable 2612 2248 2257
Debt Due 15 251 4
Other 5239 5785 6633
Current Liab. 7866 8284 8894

ANNUAL RATES Past Past Est’d ’18-’20
of change (per sh) 10 Yrs. 5 Yrs. to ’24-’26
Sales 9.5% 8.5% 10.0%
‘‘Cash Flow’’ 10.0% 7.5% 21.0%
Earnings 9.5% 7.5% 24.0%
Dividends 13.5% 13.0% 12.0%
Book Value 2.5% -3.0% 11.0%

Fiscal
Year
Ends

Full
Fiscal
Year

QUARTERLY SALES ($ mill.) A
Aug.31 Nov.30 Feb.28 May 31

2018 9070 8554 8984 9789 36397
2019 9948 9374 9611 10184 39117
2020 10660 10326 10104 6313 37403
2021 10594 11243 10357 11156 43350
2022 12325 12495 11650 12210 48680
Fiscal
Year
Ends

Full
Fiscal
Year

EARNINGS PER SHARE AB
Aug.31 Nov.30 Feb.28 May 31

2018 .57 .46 .68 .69 2.40
2019 .67 .52 .68 .62 2.49
2020 .86 .70 .78 d.51 1.85
2021 .95 .78 .90 .52 3.15
2022 1.15 1.00 1.10 .70 3.95
Cal- Full

endar Year
QUARTERLY DIVIDENDS PAID C■

Mar.31 Jun.30 Sep.30 Dec.31
2017 .18 .18 .18 .18 .72
2018 .20 .20 .20 .20 .80
2019 .22 .22 .22 .22 .88
2020 .245 .245 .245 .245 .98
2021 .275 .275

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
6.54 7.22 8.10 9.48 9.87 9.82 10.97 13.17 14.16 15.98 17.85 19.25 20.91 22.73
.66 .80 .86 1.04 1.06 1.15 1.30 1.42 1.62 1.85 2.26 2.62 3.01 2.95
.56 .66 .72 .86 .88 .97 1.10 1.18 1.35 1.49 1.85 2.16 2.51 2.40
.12 .15 .18 .22 .25 .27 .30 .35 .41 .47 .54 .62 .70 .78
.12 .16 .16 .23 .23 .17 .23 .33 .36 .51 .56 .68 .67 .64

2.69 3.03 3.49 3.98 4.48 5.04 5.18 5.67 6.24 6.22 7.41 7.29 7.55 6.13
2100.8 2072.0 2015.2 1964.4 1942.0 1936.0 1902.0 1832.0 1788.0 1740.0 1714.0 1682.0 1643.0 1601.0

17.9 16.0 16.5 17.8 15.3 16.4 18.2 20.4 19.4 24.2 24.4 27.5 21.6 25.3
.95 .86 .88 1.07 1.02 1.04 1.14 1.30 1.09 1.27 1.23 1.44 1.09 1.37

1.2% 1.4% 1.5% 1.4% 1.8% 1.7% 1.5% 1.4% 1.5% 1.3% 1.2% 1.0% 1.3% 1.3%

20862 24128 25313 27799 30601 32376 34350 36397
15.1% 14.1% 14.6% 15.1% 15.6% 15.9% 15.9% 14.3%
335.0 373.0 438.0 518.0 606.0 649.0 706.0 747.0

2133.0 2223.0 2464.0 2693.0 3273.0 3760.0 4240.0 3974.0
25.0% 25.5% 24.7% 24.0% 22.2% 18.7% 13.2% 8.1%
10.2% 9.2% 9.7% 9.7% 10.7% 11.6% 12.3% 10.9%
7339.0 7666.0 9700.0 8669.0 9642.0 9667.0 10587 9094.0
276.0 228.0 1210.0 1199.0 1079.0 2010.0 3471.0 3468.0

9843.0 10381 11156 10824 12707 12258 12407 9812.0
21.1% 21.0% 20.0% 22.6% 23.8% 26.5% 26.9% 30.3%
21.7% 21.4% 22.1% 24.9% 25.8% 30.7% 34.2% 40.5%
16.0% 15.5% 15.8% 17.5% 18.7% 22.3% 25.0% 27.8%

26% 28% 29% 30% 27% 27% 27% 31%

2019 2020 2021 2022 © VALUE LINE PUB. LLC 24-26
24.95 24.01 27.45 31.10 Sales per sh A 41.85
3.02 2.35 3.60 4.45 ‘‘Cash Flow’’ per sh 9.25
2.49 1.85 3.15 3.95 Earnings per sh AB 8.00
.86 .93 1.04 1.12 Div’ds Decl’d per sh CD ■ 1.66
.71 .70 .50 .60 Cap’l Spending per sh .85

5.77 5.17 7.75 8.30 Book Value per sh 10.65
1568.0 1558.0 1580.0 1565.0 Common Shs Outst’g EF 1500.0

32.0 48.6 Bold figures are
Value Line
estimates

Avg Ann’l P/E Ratio 20.0
1.70 2.49 Relative P/E Ratio 1.10

1.1% 1.0% Avg Ann’l Div’d Yield 1.0%

39117 37403 43350 48680 Sales ($mill) A 62750
14.0% 11.3% 14.7% 15.5% Operating Margin 20.0%
705.0 721.0 725 770 Depreciation ($mill) 975

4029.0 2937.0 4975 6200 Net Profit ($mill) 12000
16.1% 10.6% 17.0% 20.0% Income Tax Rate 21.0%
10.3% 7.9% 13.3% 12.7% Net Profit Margin 24.3%
8659.0 12272 15500 16000 Working Cap’l ($mill) 18000
3464.0 9406.0 9300 8500 Long-Term Debt ($mill) 5000
9040.0 8055.0 12200 13000 Shr. Equity ($mill) 16000
32.7% 17.6% 24.5% 30.0% Return on Total Cap’l 58.0%
44.6% 36.5% 41.0% 47.5% Return on Shr. Equity 75.0%
29.8% 18.4% 27.5% 34.0% Retained to Com Eq 59.5%

33% 49% 33% 28% All Div’ds to Net Prof 21%

Company’s Financial Strength A++
Stock’s Price Stability 75
Price Growth Persistence 90
Earnings Predictability 75

(A) Fiscal years end May 31st. (B) Diluted
earnings. Excludes nonrecurring: ’07, 2¢; ’08,
8¢; ’09, (13¢); ’13, 1¢; ’18, ($1.23) due to tax
law change; ’20, (25¢). May not sum due to

change in share count. Next egs. report due
late June.
(C) Dividends historically paid in early January,
April, July, and October. ■ Reinvestment plan

available. (D) Includes 21¢ dividend paid De-
cember 2012. (E) In millions, adjusted for
splits. (F) Each share of Class A is convertible
to one share of Class B.

BUSINESS: NIKE designs, develops, and markets footwear, ap-
parel, equipment, and accessories. Sells products to retail ac-
counts, through NIKE-owned stores and the Internet, and through a
mix of independent distributors and licensees in numerous coun-
tries. Offerings are focused in six categories: running, basketball,
the Jordan brand, football (soccer), training, and sportswear. There

is another product line for kids. Has about 76,700 employees (in-
cluding part-timers). Swoosh, LLC, owns 74.9% Cl. A shares,
15.9% Cl. B; offs./dirs., 3.8% of Cl. B; Vanguard, 8.6%; BlackRock,
7.2% (7/20 proxy). Chairman: Mark G. Parker. CEO: John
Donahoe. Inc.: Oregon. Addr.: One Bowerman Drive, Beaverton,
OR 97005. Tel.: 503-671-6453. Internet: www.nikeinc.com.

NIKE’s fiscal third-quarter report
(years end May 31st) did not sit well
with the investment community.
Shares of the footwear titan had been
trending higher in the days leading up to
the release of February-period financials,
and so too were expectations for both sales
and earnings. This likely contributed to
the selloff that followed the announcement
of results that were a mixed bag. Sales of
$10.4 billion missed the mark of $11.0 bil-
lion, while earnings came in at $0.90 a
share versus a consensus of $0.75. Digital
sales continued to rise sharply, but took a
step back from the feverish pace of earlier
this fiscal year. Too, supply chain issues
tied to problems at ports brought down
receipts in the North American market.
Wall Street follows this key metric closely,
and the quotation started sliding when the
reading did not meet expectations. Also,
the stock had been up 80% in the last
year, so profit taking played a role.
Our earnings estimate for fiscal 2021
is up by a dime per share, to $3.15.
After factoring in the $0.15 beat in the
February quarter and our $0.05 trim on
the May quarter, we land at $3.15, which

would be an all-time record for the swoosh,
and quite the accomplishment given the
backdrop of the world’s largest health
crisis in a century. The company’s digital
presence shined brightly given the lock-
down conditions around the globe, and its
NIKE Direct plan, where sales go directly
to consumers and avoid third-party
retailers, have margins heading north.
We are introducing a fiscal 2022
share-net target that equates to 25%
growth from our expected level in the
previous year. There appears to be no
reason why earnings cannot reach another
record high next fiscal year as the swoosh
starts firing on all cylinders coming out of
the pandemic. Growth around the world
has been handsome, led by a growing
presence in China, where a growing rela-
tionship with the NBA has bore fruit. Here
at home, we look for online sales to remain
elevated given customization/specification
options that are unparalleled.
These high-quality, neutrally ranked
shares are not all that appealing at
recent price points. We advise sub-
scribers to await a better entry point.
Erik M. Manning April 23, 2021

LEGENDS
16.0 x ″Cash Flow″ p sh

. . . . Relative Price Strength
2-for-1 split 12/12
2-for-1 split 12/15
Options: Yes
Shaded area indicates recession

© 2021 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber’s own, non-commercial, internal use. No part
of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-VALUELINE

RECENT
PRICE

P/E
RATIO

RELATIVE
P/E RATIO

DIV’D
YLD( )Trailing:Median: VALUELINE

Looking for this or a Similar Assignment? Click below to Place your Order