NIKE, Inc. (NKE): a likely value trap?

Avoid — this is a 4-year-long structural decline with repeated broken turnaround promises, a departing CFO, and tariff-driven margin damage, not a one-off panic.

⚠ TRAP Fundamentals60/100

Down 77% from its all-time high of $177.51 — now $40.99

Why NKE dropped

Nike's stock has been sliding for years (down over 50% over three years) as its promised "turnaround" keeps disappointing; most recently shares fell after fiscal Q3 2026 results showed the recovery was still not on track, and management said the retailer's turnaround is far from over, sending shares tumbling more than 15%. Compounding this, Nike told investors that its hoped-for turnaround would take longer than expected; revenue continued to be flat; its CFO said it was stepping down, and tariff-related expenses torched its profits, which together drove the stock down 36% in just the first half of 2026.

Fwd P/E 17.8Op margin 12.7%Rev growth -1.1%Debt/equity 74.3%Analyst upside 24.7%

How this scored 60/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 6.7%

✅ Generates cash Free cash flow $1.9B

✅ Not drowning in debt Debt/equity 74.3% (limit 200%)

✅ Can pay its bills Current ratio 2.0 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 12.7% 5/9

Net profit margin 6.7% 3/8

Return on equity 22.1% 7/8

Growth Is it getting bigger, or dying? 13/25

Revenue growth -1.1% 1/9

Earnings growth 428.0% 8/8

Expected profit change 9.8% 4/8

Value Is it cheap right now? 14/25

Forward P/E 17.8 7/10

PEG ratio 1.6 4/8

Analyst target upside 24.7% 3/7

Balance sheet Will it survive? 19/25

Debt / equity 74.3% 7/10

Current ratio 2.0 5/8

Free cash flow $1.9B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-24. Research only — not financial advice.