nike ,decent company with light growth ahead

Accuracy score :
97%

Nike Inc

Summary (from latest annual report and quarterly report 2016, Fiscal year ends in May)

  • Total equity: 12.16 billion USD
  • Market Cap is 83.3 billion USD ( last price of the stock is 50 USD)
  • Nike Inc  is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services
  • Equity of total company increased from 10.82 billion USD in 2014 to 12.16 billion in 2016
  • Company has 2.66 billion USD in cash on account (from quarterly report)
  • Total equity – cash on account = 12.16 billion USD – 2.66 billion USD = 9.5 billion USD
  • In 2016 company has 1.99 billion USD long-term debt, short – term debt was 66 million USD (In 2014 total debt was 1.37 billion USD)
  • In 2016 quarterly report - total equity increased to 12.16 billion  USD from 10.82 billion USD in 2014, total debt is 2.06 billion USD in 2016)
  • Company's revenue increased in 2016 to 32.37 billion USD from 30.6 billion in 2015
  • Net income in 2016 was 3.76 billion USD, Net income in 2015 was 3.27 billion USD
  • In 2016 company paid 1.02 billion usd dividend to its shareholders

Nike Inc

Nike Inc is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. Nike recently teamed up with Apple Inc. to produce the Nike+ product that monitors a runner's performance via a radio device in the shoe that links to the iPod nano.

In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It" and the Swoosh logo. Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

 

  • For fiscal 2016, NIKE Brand and Converse sales in the United States accounted for approximately 47% of total revenues, compared to 46% for both fiscal 2015 and fiscal 2014. For fiscal 2016, non-U.S. NIKE Brand and Converse sales accounted for 53% of total revenues, compared to 54% for both fiscal 2015 and fiscal 2014.
  • North America division represents 47% of total revenues
  • Western Europe division represents 20% of total revenues
  • Central & Eastern Europe division represents 5% of total revenues
  • China division represents 12.5% of total revenues
  • Japan division represents 2.5% of total revenues
  • Emerging Markets represent 13% of total revenues
  • NIKE Brand represents 94% of total revenues, Converse Brand represents 6% of total revenues

 

 NKE standalone subsidiaries and acquisitions :

  • Nike has acquired several apparel and footwear companies over the course of its history, some of which have since been sold (Nike sold Starter in 2007 and Bauer Hockey in 2008. The company sold Umbro in 2012 and Cole Haan in 2013)
  • Its first acquisition was the upscale footwear company Cole Haan in 1988 for 80 million USD
  • In 2002, Nike bought surf apparel company Hurley International for 100 million USD
  • In 2003, Nike paid 309 million USD to acquire Converse
  • In 2016 Nike acquired Virgin Mega USA for undisclosed amount (a 12-person startup that is part of Richard Branson's Virgin Group, worth less than 25 million USD)

 

Total = 514 million usd

 

During the third quarter of fiscal 2016, the Company concluded its four-year, $8 billion share repurchase program approved by the Board of Directors in September 2012. Under this program the Company purchased a total of 197.1 million shares at a cost of $8 billion (an average price of $40.58 per share). Following the completion of this program, the Company began repurchases under the new four-year, $12 billion program approved by the Board of Directors in November 2015. As of the end of the fourth quarter of fiscal 2016, the Company had repurchased 20.1 million shares at an average price of $59.21 per share for a total approximate cost of $1.2 billion under the new program

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 2.06 billion USD, company has 2.66 billion USD in cash on account, ROE is around 30 %).

 

 

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