This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
Nike Inc. (NKE)
- Overall Score (-100% ; +100%): +29.6%
- Analysts are optimistic about NKE
- consider it undervalued by 10% at current prices
- they believe that EPS will grow at an annual rate of 16.4% for the next 5 years
- Excellent results in the last quarterly report released
- improved all items and margin
- net income +25% Y-o-Y
- In the last 3 years NKE has reduced margins, despite a 23% growth in revenues
- Insiders and Hedge Funds have reduced their positions in the last 3 months
Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services.
The overall score of NKE is +29,6% .
In the last 6 months, NKE has overperformed the S&P500 index by 7,0% and analysts believe the company is undervalued by 9,9% .
In the last quarter, the company reported revenues of 10660 million, up by 7,2% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 39829 million, up by 23,0% in the last 3 years.
NKE reported an operating income of 1543 million in the last quarter, an improvement of 15,7% compared to the same quarter 12 months earlier, also reporting an improvement of 7,9% in the operating margin. Considering the sum of the last four quarters (TTM), NKE reports an operating income of 4981,0 Million , a growth of 10,6% compared to three years ago and a reduction of -10,1% in the operating margin.
NKE reported a net income of 1367 million in the last quarter, an improvement of 25,2% compared to the same quarter 12 months earlier, also reporting an improvement of 16,8% in the net margin. The TTM net income is 4304 million , a growth of 14,5% compared to three years ago and has worsened by -7,0% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 11,5% and a growth in revenue of 7,4% . Furthermore, they expect an annual growth of NKE EPS by 16,4% for the next 5 years.
In the last quarter, NKE reported better EPS than analysts’ expectations and the stock price reacted by increasing by 4,2% .
Finally, in the last 3 months the Hedge Funds have decreased their positions by 1.7M shares. The Insiders have sold shares worth $42.7M .
Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.