Nike's Financial Strength: What Moneyball Data Reveals

Core Insights - Nike's financial metrics and valuation appear compelling for investors, supported by its dominant position in the global athletic footwear and apparel market [1] Financial Performance - Nike's Superscore is 74/100, indicating strong market position and financial performance [3] - The company generates over $5.5 billion in free cash flow annually and holds$739 million in net cash, providing resources for investment in technology and AI [8] - Nike's financial score is 84/100, reflecting solid fundamentals and a free cash flow yield of 4.8%, suggesting an attractive valuation relative to growth prospects [10][11] Product and Technology - Nike's Product score is 76/100, showcasing branding excellence and market dominance [5] - The Technology score is 75/100, indicating competitive technological capabilities, while the AI Implementation score of 51/100 suggests room for improvement in AI integration [7] Leadership and Future Outlook - The Leadership score is 49/100, highlighting recent weaknesses in this area, but the return of Elliott Hill as CEO in October 2024 may improve this score [6] - The company's ability to navigate its resurgence under new leadership will be crucial for future performance [6] Investment Potential - The high GARP (growth at a reasonable price) score of 93/100 indicates that Nike's stock may be attractively valued relative to its growth prospects [11] - Given the strong Moneyball scores, Nike is positioned to potentially outperform the S&P 500 over the next five years [11]