Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>In the Q3 2024 earnings, NIKE, Inc. outlined how it is driving growth despite not performing to its potential.</li><li>The company is focusing on four key areas: a sharpened focus on sport, continuous product innovation, bolder and more distinctive brand marketing, and collaboration with wholesale partners to expand the marketplace.</li><li>A significant measure of progress is the alignment of the organization to focus on the consumer and sport.</li></ul>

In the Q3 2024 earnings, NIKE, Inc. outlined how it is driving growth despite not performing to its potential.The company is focusing on four key areas: a sharpened focus on sport, continuous product innovation, bolder and more distinctive brand marketing, and collaboration with wholesale partners to expand the marketplace.A significant measure of progress is the alignment of the organization to focus on the consumer and sport.

Nike Inc.: A Tale Of Brand Elevation Through Greater Market Presence! - Major Drivers

<ul><li>NIKE, Inc. surpassed Wall Street's revenue and earnings expectations, achieving a 1% growth in revenue compared to the previous year.</li><li>Despite a highly promotional market, gross margins expanded, leading to accelerated earnings per share and free cash flow.</li><li>The company outpaced the industry during the holiday season, with strong growth in Nike Digital and brick-and-mortar stores, particularly in Greater China.</li></ul>

NIKE, Inc. surpassed Wall Street's revenue and earnings expectations, achieving a 1% growth in revenue compared to the previous year.Despite a highly promotional market, gross margins expanded, leading to accelerated earnings per share and free cash flow.The company outpaced the industry during the holiday season, with strong growth in Nike Digital and brick-and-mortar stores, particularly in Greater China.

NIKE Inc.: Unleashing the Power of Innovation – Inside Their Strategy for Global Dominance! - Major Drivers

<ul><li>Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.</li><li>The company managed a decent growth amidst various challenges over recent years, including societal, geopolitical, global health issues, and supply chain disruptions.</li><li>With revenues increasing from $39 billion in fiscal 2019 to over $50 billion, Nike’s growth rate surpasses the overall industry.</li></ul>

Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.The company managed a decent growth amidst various challenges over recent years, including societal, geopolitical, global health issues, and supply chain disruptions.With revenues increasing from $39 billion in fiscal 2019 to over $50 billion, Nike’s growth rate surpasses the overall industry.

NIKE Inc.: Zooming Into The Success Of Their D2C Marketplace Model & New Innovations! - Major Drivers

Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

<div><div><div><div><ul><li>NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities.</li><li>The Company's operating segments in- clude North America; Europe, Middle East &amp; Africa (EMEA); Greater China; and Asia Pacific &amp; Latin America (APLA).</li><li>It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. </li></ul></div></div></div></div>

NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities.The Company's operating segments in- clude North America; Europe, Middle East &amp; Africa (EMEA); Greater China; and Asia Pacific &amp; Latin America (APLA).It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. 

Equity Analyst

Steve Zhou, CFA

Shenzhou Intl Group Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike (NKE US)</a> reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. </li>
<li>Nike's inventories declined by 10% yoy during the quarter, which bodes well for <a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a>, as sales to Nike made up 30% of Shenzhou's sales. </li>
<li>Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. </li>
</ul>



Nike (NKE US) reported better than expected 1Q24 results this morning, with the stock up 8% in after market trading. 
Nike's inventories declined by 10% yoy during the quarter, which bodes well for Shenzhou Intl Group Holdings (2313 HK), as sales to Nike made up 30% of Shenzhou's sales. 
Shenzhou is trading at 15x 2024E PE, compared to an average of 21x forward PE over the last decade. 


Shenzhou Intl (2313 HK):  Nike's Inventories Declined By 10% Yoy in 1Q24

United States

NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors.

Nike (NKE US)

Nike Inc.: A Tale Of Brand Elevation Through Greater Market Presence! - Major Drivers

In the Q3 2024 earnings, NIKE, Inc. outlined how it is driving growth despite not performing to its potential. The company is focusing on four key...

Baptista Research

NIKE Inc.: Unleashing the Power of Innovation – Inside Their Strategy for Global Dominance! - Major Drivers

NIKE, Inc. surpassed Wall Street's revenue and earnings expectations, achieving a 1% growth in revenue compared to the previous year. Despite a...

Baptista Research

NIKE Inc.: Zooming Into The Success Of Their D2C Marketplace Model & New Innovations! - Major Drivers

Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. The company managed a decent...

Baptista Research

Company Update - NIKE INC.

NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports...

VRS (Valuation & Research Specialists)

Shenzhou Intl (2313 HK): Nike's Inventories Declined By 10% Yoy in 1Q24

Note the strong share price momentum. Shenzhou (2313 HK) remains the best proxy for gaining exposure to the global sportswear sector.

Steve Zhou, CFA