[Keep going back to Nike]
I keep going back to Nike.
Not just as a user of Nike, but also a share buyer of Nike. And my results is red.
The case for Nike
Well as a marathon runner, I have tried Brooks, Reebok, Saucony, Addidas and somehow, I found myself keep going back to$Nike(NKE)$ .
Instead of spending tonnes on their shoes and products, I was thinking, why not check out their stock?
Revenue per share has been increasing consistently year on year for 5 years. ✅
Operating cash flow per share a little lumpy but going up. 👍
Net margin 6.79 to 11.1 with higher scores during the COVID years. ✅
Debt to Equity at 0.87 is a little on the high side. 🤔
Free cash flow generation has been growing for last 5 years. ✅
All in all, not too bad numbers.
The case against Nike
The last CEO John Donahoe really Dunno-ho he manage the company. Disrupted their previously successful retail model and attempted to do a Direct to consumer method. However that fell flat and allowed competitors like Cloud, Addidas and others to catch up.
Their recent news was largely negative with not much growth being baked in for the future.
So how?
Thankfully, the new CEO Eillot Hill was recently appointed on Oct 14 2024 and he has done some major changes to the company. Having worked at Nike for 32 years, Hill is veteran at the company. Hill is refocusing back on to the athelete, with innovation, products and storytelling.
Aside, in my recent New York trip, I had the chance to visit their flagship Nike store and I saw with my own eyes, the queues to get in. The store featured their powerful Alpha Fly model. Aside, there was customisation available at the top floor. I was seriously impressed.
With a GF value of $114.44 and a DCF FCF value of $78.28, I would add on everytime the number dips. Why wouldn't you want to buy on a discount?
After all, you have to JUST DO IT.
[Cool]
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