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

Avoid — Nike's 78% collapse reflects a real, ongoing loss of market share and China sales, not a temporary panic.

⚠ TRAP Fundamentals62/100

Down 79% from its all-time high of $177.51 — now $38.10

Why NKE dropped

This is not a fresh crash but a multi-year structural decline: China sales have fallen for eight straight quarters, rivals Hoka and On keep taking market share, tariffs have squeezed margins, and the CEO's "Win Now" turnaround keeps missing its own timelines — most recently the stock fell 15% in April 2026 on weak Q3 results and was just removed from the S&P 100 in September 2026.

Fwd P/E 16.6Op margin 12.7%Rev growth -1.1%Debt/equity 74.3%Analyst upside 30.9%

How this scored 62/100

✅ 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 9.1% 4/8

Value Is it cheap right now? 16/25

Forward P/E 16.6 7/10

PEG ratio 1.5 5/8

Analyst target upside 30.9% 4/7

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 2026-09-09. Research only — not financial advice.