Nike has become more expensive even as its stock collapsed. Shares are down 64% from five years ago, yet its P/E is higher than it was then. x.comÂ
Q-Cap
Financial Satire & Grift Detection
Nike's 29x P/E even after a steep share-price decline leaves it expensive enough to short. x.comÂ
Nike shares are still not cheap, even after falling nearly 80% over five years. The roughly 19x P/E a reply cites includes a one-time tariff refund gain. x.com x.comÂ
Nike is the best stock to buy when others are fearful. x.comÂ
Nike looks overvalued at about 25.6x forward earnings for a business guiding to high-single-digit revenue declines. At $32 on $1.25 of EPS, per the lowered guidance @TrendSpider reports, plus a 5% dividend, tobacco stocks like Altria should triple if that is the going rate for shrinking sales. Nike does not merit a tobacco multiple: it angered its distributors, faces more premium rivals and new entrants, has less loyal customers, is no government-mandated duopoly and pays for costly marketing. … Show more
Nike is not cheap: it still trades at 21 times earnings despite declining revenue. x.comÂ
Nike's dividend yield, now high versus its ten-year history, is the new question for investors and makes the stock very interesting at these levels. The numbers have not bottomed, guidance was atrocious and parts of the business are getting worse, offset somewhat by better US wholesale. The guidance implies Nike will use some cash to fund the dividend, but it has plenty. The stock remains too expensive on earnings and too cheap on dividend yield. x.com x.com x.com x.com x.comÂ
Nike deserves a lower valuation than even 14x earnings, which is generous for a shoe company with shrinking revenue. It still trades above 20x earnings, while the S&P 500 trades at 19x with huge growth. x.comÂ
Nike is a stagnant company losing pricing power, pointing to more tough years for shareholders. Revenue fell 4% last quarter, the only line still shrinking while gross margin expanded, inventory fell 3% and North America grew 2%, per the quoted post. x.comÂ
Nike's brand concerns look priced in; stabilization, not sudden revenue acceleration, is what the speculative long needs. A few good campaigns and a return to large stores could help, though China consumers will be a drag. Short-term EPS is a poor indicator, and customers may return after trying other brands. x.com x.comÂ
Nike is still super expensive even if it pulls a magic trick on margins, and the stock has been a buy-the-dip nightmare because the brand became uncool. It can keep existing while slowly fading, which is a terrible investment case. x.com x.comÂ