Nike Inc. (NKE) 10-K Red Flags
Risk signals extracted deterministically from Nike Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (11)
- Receivables outpacing revenue: Accounts receivable grew +25.7% YoY vs revenue growth of +0.2%. The +25.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +33.0% vs revenue +0.2%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
- Free cash flow deteriorating: FCF declined +33.2% YoY (from $3.27B to $2.18B). With OCF at $2.87B and capex at $684.0M, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
- Endogenous analysis: Revenue grew +0.2% but receivables grew +25.7% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: Free cash flow declined despite stable or rising capex, indicating the cash burn is operational rather than investment-driven. This is a structural concern — cost reduction or asset sales may be needed to restore FCF.
- 20 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 7 disclosure(s) dropped from prior year — reduced reporting granularity.
- Price $41.05 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 44.42.
- Receivables outpacing revenue: Accounts receivable grew +25.7% YoY vs revenue growth of +0.2%. The +25.5% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Inventory buildup exceeds sales growth: Inventory grew +33.0% vs revenue +0.2%. Excess inventory may signal weakening demand, potential write-downs, or supply chain overcommitment. Watch gross margin for discounting impact.
Filings & ownership
- Latest annual report (10-K) filed Jul 15, 2026.
- Latest quarterly report (10-Q) filed Apr 1, 2026.
- 12 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 5 sell transactions — net selling $400.1K.
- ~10,000+ recent 13F-HR filings reference Nike Inc.; broad institutional reporting.
- Recent filers include LANSDOWNE PARTNERS (UK) LLP, LANSDOWNE PARTNERS (UK) LLP, LANSDOWNE PARTNERS (UK) LLP.
- 2 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 18 recent 13G passive institutional ownership notices.
Full NKE analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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