Financial Analysis of Nike, Adidas and Skechers

In this article, I am going to compare the financial ratios between Nike, Adidas and Skechers. They are all in sportswear industry, and are competitors in global markets.

Date: 2022-5-17

• Nike has the highest PE ratio of 29.71, Adidas has 16.64, and Skechers has 7.57. 
• In terms of revenue growth, Nike has a quarterly growth rate of 5%, and Adidas has negative 0.1%. Among them all, Skechers has the highest quarterly growth rate of 26.8%, probably because the former two already have infiltrated into most of the markets and they are much bigger companies. If Skechers continues this growth rate, I would say that it is in a very good position.
• In terms of profit margin, Nike is doing pretty okay. I wouldn't call it super impressive compared with some of the high-tech companies, but for sportswear industry, this is acceptable.
• High ROE return for Nike and it also pays dividends. I checked its dividends history, Nike has been paying dividends every quarter for the past 15 years.

So to sum up, I think Nike is a bit overpriced because of its high PE ratio, unless its sales growth catches up, but a good cash flow to provide stable dividends. Skechers is probably a better pick if you are looking for a better bargain.

Disclaimer: this is just my personal opinion, and please do not base your investment decisions on my article, and be wise with your money.