Orin
NKENYSE·Apparel - Footwear & Accessories

NIKE, Inc. NKE

Market cap $53.3BP/E 17.2× trailingGross margin 42.9%Reports Tue 29 Sep, after the close
$36.05
−0.06 (−0.17%)live 09:30 ET
52-wk $35.35 – $76.97
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Orin's take
0.62conviction · moderate
Refreshed 13 Aug · take v5. A new filing or a print queues the next refresh.

Nike's turnaround remains stalled: FY2026 revenue of $46.4B was essentially flat versus FY2025's $46.3B and still 10% below the FY2024 peak of $51.4B, while EPS declined to $2.10 from $2.16 and free cash flow fell 33% to $2.2B from $3.3B. At $41.23 the stock trades at 19.6x trailing earnings — a 71% premium to the peer median P/E of 11.4x — despite deteriorating fundamentals and a bearish technical setup below both the 50-day ($42.90) and 200-day ($53.37) moving averages.

A cluster buy by four insiders in April 2026 (~$3.7M near $42) signals confidence, but multiple executives including the CFO and Nike President sold shares in early August 2026, muddying the signal. Hold until revenue growth re-accelerates and FCF stabilizes.

What could go wrong

  • Turnaround stalls further. FY2026 revenue was flat YoY at $46.4B and EPS declined to $2.10 from $2.16, suggesting the recovery is not gaining traction despite strategic efforts.
  • FCF deterioration. Free cash flow fell to $2.2B in FY2026 from $3.3B in FY2025 and $6.6B in FY2024, raising concerns about dividend sustainability (Motley Fool flagged NKE as a potential dividend cutter).
  • Valuation premium vs peers. NKE trades at 19.6x P/E and 14.3x EV/EBITDA, a 71% and 108% premium to peer medians respectively, despite weaker growth — limiting downside protection.
  • Insider selling. Multiple executives (CFO Friend, President Montagne, COO, CLO) sold shares in August 2026 at ~$41.60–$42.05, offsetting the positive April cluster buy signal.

What would change my mind

Quarterly revenue inflects positive. Two consecutive quarters of YoY revenue growth above 3%bullish
Gross margin expansion. Gross margin returns above 45% (FY2024 level of ~44.7%) for a full quarterbullish
FCF continues to decline. FY2027 free cash flow falls below $2B, pressuring the dividend and buyback capacitybearish
Guidance cut. Management lowers FY2027 revenue or operating margin guidance below consensusbearish

Where this comes from: Orin fundamentals FY2026/FY2025/FY2024 · Orin fundamentals FY2026/FY2025 · peer_relative composite · insider transactions. Orin's read on NKE; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$3.2B0.1% of fund
Capital World Investors$3.0B0.3% of fund
State Street$2.6B0.1% of fund
Vanguard Portfolio Management$1.9B0.1% of fund
Geode Capital Management$1.2B0.1% of fund
Wellington Management Group Llp$911.7M0.2% of fund

117 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 144 Form 4 filings, net $81.2M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about NKE

its filings · its transcripts · its numbers

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Where it trades

vs its own 5y · Consumer Cyclical
MetricNowOwn medianSector
P/E17.2×31.0×79.6×
EV/EBITDA12.1×24.8×
P/S1.15×3.19×
P/B3.6×11.7×

Its P/E sits below all 5 of the last 5 years (−3.42σ from its own mean).

What the price assumes

10.4%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

71 firms · 2026-09-23
Consensus target

$48

$30$75 · +32% against today's price

How they rate it
  • 33 buy or overweight
  • 32 hold
  • 6 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 9.8× of 2 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
NKENIKE, Inc.$53B17.2×12.1×42.9%6.7%22%
DECKDeckers Outdoor Corporation$11B11.1×6.9×57.8%18.4%41%
LULULululemon Athletica Inc.$12B8.4×4.8×56.1%12.8%30%

The median is of the 2 peers listed above and nothing else — check it against the column. This company trades 75.7% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY15 26.8×FY26 21.9×

What its sector has traded at

Consumer Cyclical
FY14 393.1×FY26 81.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$48$44.02 · +9%2026-06-10
Levered DCF$42$44.02 · −5%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $36.05
52-week range$35 – $77
Analyst targets$30 – $75
Standard DCF$48 as of 2026-06-10, when it was $44.02
Levered DCF$42 as of 2026-06-10, when it was $44.02
At own 5y-median P/E (31×)$65
At 5y P/E range (25–37×)$53 – $78
At sector P/E (80×)$167

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.