About: Nike is the clear market leader in the global footwear and sports apparel industry and has been since the late 80’s. It’s ‘swoosh’ is among the most recognisable symbols on the planet. Nike excels across every facet of their business, from product design, manufacturing, logistics and retailing. Their direct-to-consumer sales, through their own stores and online, allows Nike to control the whole customer experience, which helps drive organic growth and also bodes well for margins.

Why it’s in the portfolio:

Fundamentals: NKE has a market cap of $145b USD, a PE of 34.9x forward earnings, EPS of 3.0x forward earnings and a PEG ratio of around 2.3. The company currently has a 1.0% dividend yield and a 33.7% payout ratio. The company’s debt to assets are currently 14.7% and debt to equity is 38.5%.

What could go wrong?