Nike (NYSE:NKE)
Company Description
Nike specializes in research, development, manufacturing, and distribution of various products within the apparel footwear and accessories market. Founded in 1965 and headquartered in Beaverton, Oregon, the company operates in three core segments: footwear, apparel, and other equipment. The apparel and equipment product segments offer a variety of products from shirts, pants, protective gear and many other sporting goods. Within the footwear segment, Nike has been a global leader in technology and style innovation. The company currently has over 44,000 employees and operates globally.
Investment Thesis
At this time, Nike presents an interesting investment opportunity. With the consistent longevity of dividend increases coupled with the attractive ROE ratio in comparison to competitors, Nike appears to be a great investment but that may not be the whole story. With an intrinsic value calculated from the discounted cash flow model of $87.84, Nike stock currently seems overpriced. While Nike has a strong history of consistent revenues and profits, which it is poised to continue in the future, and is a global power in its industry, Nike’s recent acquisition of Converse is driving up stock price. In the eyes of Graham this would be an unattractive investment. However, if the gap between stock price and intrinsic vale were to close, I believe this company to be a solid long-term investment in the eyes of Buffett.
Introduction Nike has developed to be the world’s leading seller of athletic shoes and apparel. Beginning in Beaverton, Oregon, Nike now has roughly 48,000 employees worldwide and 1.01 million workers in contract factories. Holding 38% of the global sports footwear market, Nike has become the most successful sports footwear manufacturer in the world. Not only is Nike the world’s top footwear manufacturer, Nike is continually growing each year. Over the past ten years alone, Nike has doubled their revenue.
Nike is a company that has thoroughly embedded itself into the psyche of people around the world. It's a company that started with humble origins from selling footwear in the basement to becoming the behemoth in the athletic industry. Bill Bowerman, University of Oregon track & field coach, and Phil Knight, middle-distance runner under Bowerman co-founded Nike. Nike was first established as Blue Ribbon Sports in 1964 as a partnership and the name Nike was officially adopted on May 30, 1978. The infamous Nike Logo - Swoosh, was created for a fee of $35 by Carolyn Davidson, a graphics design student. In 1980, Nike becomes a publicly traded company with the completion of its Initial Public Offering of 2,377,000 shares
Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune
Looking at the percentage of short-term assets Nike has around 69.50% which indicates that they
Nike, Inc. is a world’s leading supplier and a major manufacturer of athletic shoes and sports apparel. It was founded on January 25th, 1964 as Blue Ribbon Sports by Philip Knight and Bill Bowerman. It officially became Nike, Inc. in 1978. Currently their brands include Nike Golf, Nike Pro, Nike+, Air Jordan and Nike Skateboarding, while their subsidiaries are Cole Haan, Hurley International, Umbro and Converse. During this stage, the Nike brand has become so strong as to place it in the list of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble.
NIKE Inc., known for its athletic shoes, apparel, and it wide variety of sporting goods is located in the state of Oregon. NIKE Inc. previously known as Blue Ribbon Sports was originated in 1964 with the idea of importing shoes from Japan and sells them locally. Once successful, the founders, Bill Bowerman and Phil Knight, decided to market their own brand of athletic shoes. As a result, NIKE Inc. was established. From there, NIKE Inc. has a long history of success in producing quality, durable athletic merchandise that focuses on the athlete. In
Nike was formed in 1962 as Blue Ribbon Sports by Phil Knight and Bill Bowerman where the goal was to manufacture high quality running shoes. By 1979, the company had garnered approximately 50% of the United States running shoe market. By 1987, the company had moved into other athletic segments such as Basketball and general purpose exercise. Nike operates globally and claims a great deal of media attention as they sponsor big league sports celebrities and other media stars (Kell, 2016). Recently, you can see the majority of athletes at the 2016 Olympics in Rio de Janeiro wearing Nike shoes. This demonstrates the power of their brand.
NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf
Nike, is the most distinctive company out there, the symbol of a check mark is well known all across the globe and being one of the biggest shoe/clothing factories to this day. Phil Knight founded Nike and a track and field coach named Bill Bowerman in 1975. Bill Bowerman was a past Olympic track runner and had a tragic car crash which brought running to an end for him, but brought the creation of Nike which, sells products like basketball, skating, soccer, hiking, winter, and many more different types of shoes as well as clothing for all different aspects. Their main locations for its headquarters located in Oregon, and now have over 62,800 employed at Nike. Nike now has revenue of 30.8 Billion dollars US and a net income of 3.2 million every
Nike Inc. (NKE) is a $32.3 billion multi-national enterprise headquartered in Beaverton, OR. Nike was originally founded as Blue Ribbon Sports in 1962, and in 1967, the company rebranded as Nike. Positioned as the worldwide leading brand in the sports apparel industry, Nike’s primary business activity is “the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services” (Nike Inc., 2016).
Nike, Inc. which is based in Beaverton, Oregon is the biggest and most successful brand in retail and sports. (History of Nike – KicksOnFire.com).The brand is so successful that it holds over 60% market share in the industry. Nike was first known as Blue Ribbon Sports and was established in 1964. It was originally deal by a Japanese shoe maker Onitsuka Tiger (now known as ASICS). It only formally become Nike Inc. in 1971. It was started by a track and field coach, Bill Bowerman and Phil Knight, a runner from Portland who was enrolled in the University of Oregon. (Business Insider, 2014) Till date, The Nike Global team has employees in six continents and around 53 countries. They have more than 750 stores around the globe (Company Profile –
Nike Inc. is a very successful publicly traded sportswear and equipment company based in the United States. Nike is a multi-national and Fortune 500 company. It has reached achievements in their innovation in products that Nike has become one of the most recognized companies today and companies dream to have what Nike has created. The main headquarters for the company is in the Portland metropolitan area near Beaverton, Oregon. Nike leads the world in supplying athletic apparel and shoes. Nike shows how devoted they are in the satisfaction of their customer’s needs that it shines upon their mission statement and encompasses their vision. Nike ensures to go far and beyond expectations so that their customers receive quality products and services. Nike was founded in 1964 as Blue Ribbon Sports, but goes back to the 1950’s, and with their extensive history it only adds up to its impressive reputation in the Sports industry.
INTRODUCTION Founded in 1968 in Oregon, Nike's business activities involve design, development and the worldwide marketing of high quality apparel, equipment, footwear and accessory products.
Nike, Inc. (IPA: / 'naɪki/) (NYSE: NKE) is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered in Beaverton, near the Portland metropolitan area of Oregon. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $18.6 billion USD in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian. HISTORY OF NIKE The company 's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into
Nike is an American brand that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel and accessories. Headquartered in Oregon, Portland, it is currently the world's largest supplier of athletic shoes and apparel (Trending Top Most, 2017), generating a total revenue in excess of US$34billion based on its Audited Account FYE 31.5.2017. Nike had a worldwide direct workforce of more than 70,000 at the end of fiscal year 2017 and another 650,000 indirect workers operating from its contract manufacturing and retail