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

Avoid — the "428% earnings growth" is mostly a one-time tariff-refund accounting item, and the real turnaround keeps stalling, especially in China.

⚠ TRAP Fundamentals61/100

Down 80% from its all-time high of $177.51 — now $35.84

Why NKE dropped

Nike has been sliding for years on lost market share to Adidas/Chinese brands, tariff cost hits, and a slow CEO Elliott Hill turnaround that keeps missing its own timelines; the latest guidance (ahead of Oct 1 2026 earnings) still points to declining sales in China and flat-to-weak profits.

Fwd P/E 16.6Op margin 12.7%Rev growth -1.1%Debt/equity 74.3%Analyst upside 27.5%

How this scored 61/100

✅ 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? 12/25

Revenue growth -1.1% 1/9

Earnings growth 428.0% 8/8

Expected profit change 3.0% 3/8

Value Is it cheap right now? 16/25

Forward P/E 16.6 7/10

PEG ratio 1.4 5/8

Analyst target upside 27.5% 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 2026-09-30. Research only — not financial advice.