CluenexNIKE Inc NKE
NIKE Inc scores average on business quality (5.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What NIKE Inc does
Nike designs and sells athletic footwear, apparel, and equipment, generating revenue primarily through wholesale partners and direct-to-consumer retail channels worldwide. The company is currently navigating leadership pivots and inventory resets to reverse a sharp revenue slump visible in recent annual reports.
- What it does best
Nike dominates global athletic footwear through unmatched brand equity and athlete endorsements that command premium pricing. Its gross margin of 42.9% outpaces many traditional apparel peers, protected by decades of cultural lock-in.
- The main risk
Top-line stagnation leaves the business vulnerable to nimble footwear rivals like Deckers, whose revenue grew 9.8% while Nike's growth flatlined near zero at 0.2%.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 8.2% with a net margin of 6.7%, reflecting compressed profitability compared to historical peaks. Scale currently fails to drive higher margins as costs weigh down earnings.
A massive global brand moat locks in loyal consumers and elite athletes, reflected in a top-quartile ROE of 22.0%. Rivals struggle to replicate this scale within years.
Revenue growth sits at 0.2%, down sharply from 51.4 billion dollars in 2024. This top-line stalling shows a fading growth engine across core footwear markets.
Nike holds $9.0 billion in cash against $7.9 billion in total debt, creating a net cash position of $1.1 billion. Free cash flow dropped to $2.1B from $6.6B two years prior, showing a softer financial stance.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on NKE
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
NIKE Inc scores average on the Cluenex quality check (5.1 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Dec 16, 2026, after the close.
See NKE today
- Today's verdict on NKE, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “NIKE Inc (NKE)”, https://cluenex.com/stocks/nke/, data as of Oct 10, 2026.