FOOT LOCKER INC (FL)
US3448491049 - Common Stock
FL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. FL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. FL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FL had positive earnings in the past year.
In the past year FL had a positive cash flow from operations.
FL had positive earnings in 4 of the past 5 years.
FL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FL has a worse Return On Assets (-6.21%) than 71.79% of its industry peers.
FL's Return On Equity of -14.85% is on the low side compared to the rest of the industry. FL is outperformed by 60.68% of its industry peers.
FL has a Return On Invested Capital of 1.69%. This is comparable to the rest of the industry: FL outperforms 41.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FL is significantly below the industry average of 12.29%.
The 3 year average ROIC (6.82%) for FL is well above the current ROIC(1.69%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -14.85% | ||
| ROIC | 1.69% |
ROA(3y)3.5%
ROA(5y)4.51%
ROE(3y)8.85%
ROE(5y)11.61%
ROIC(3y)6.82%
ROIC(5y)6.85%
1.3 Margins
FL's Operating Margin of 1.72% is in line compared to the rest of the industry. FL outperforms 46.15% of its industry peers.
In the last couple of years the Operating Margin of FL has declined.
The Gross Margin of FL (28.21%) is worse than 69.23% of its industry peers.
FL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.72% | ||
| PM (TTM) | N/A | ||
| GM | 28.21% |
OM growth 3Y-20.78%
OM growth 5Y-21.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-2.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FL is destroying value.
FL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FL has less shares outstanding
The debt/assets ratio for FL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.21 indicates that FL is not a great score, but indicates only limited risk for bankruptcy at the moment.
FL has a Altman-Z score (2.21) which is comparable to the rest of the industry.
The Debt to FCF ratio of FL is 17.80, which is on the high side as it means it would take FL, 17.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FL (17.80) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.15 indicates that FL is not too dependend on debt financing.
FL has a better Debt to Equity ratio (0.15) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 17.8 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.18
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.67 indicates that FL should not have too much problems paying its short term obligations.
FL's Current ratio of 1.67 is fine compared to the rest of the industry. FL outperforms 70.94% of its industry peers.
A Quick Ratio of 0.45 indicates that FL may have some problems paying its short term obligations.
With a Quick ratio value of 0.45, FL perfoms like the industry average, outperforming 42.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
FL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.26%.
FL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.32% yearly.
The Revenue has decreased by -0.07% in the past year.
FL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.57% yearly.
EPS 1Y (TTM)-71.26%
EPS 3Y-20.25%
EPS 5Y-21.32%
EPS Q2Q%-217.49%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y2.67%
Revenue growth 5Y0.57%
Sales Q2Q%-1.41%
3.2 Future
The Earnings Per Share is expected to grow by 15.84% on average over the next years. This is quite good.
FL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.94% yearly.
EPS Next Y-10.93%
EPS Next 2Y14.12%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year0.02%
Revenue Next 2Y1.15%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.48, the valuation of FL can be described as correct.
FL's Price/Earnings ratio is a bit cheaper when compared to the industry. FL is cheaper than 77.78% of the companies in the same industry.
FL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.34.
With a Price/Forward Earnings ratio of 11.12, the valuation of FL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FL is valued a bit cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FL to the average of the S&P500 Index (23.61), we can say FL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FL is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
FL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.04 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
FL's earnings are expected to grow with 15.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.12%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.86%, FL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, FL pays a better dividend. On top of this FL pays more dividend than 96.58% of the companies listed in the same industry.
FL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
5.2 History
The dividend of FL decreases each year by -2.24%.
FL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FL decreased in the last 3 years.
Dividend Growth(5Y)-2.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y14.12%
EPS Next 3Y15.84%
FOOT LOCKER INC
NYSE:FL (1/8/2025, 8:04:00 PM)
After market: 20.555 0 (-0.02%)20.56
-0.63 (-2.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.19%
Inst Owner Change-0.01%
Ins Owners0.96%
Ins Owner Change-11.26%
Market Cap1.95B
Analysts68.28
Price Target24.3 (18.19%)
Short Float %7.11%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Dividend Growth(5Y)-2.24%
DP0%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-5.45%
Max Revenue beat(2)-2.26%
Revenue beat(4)1
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-5.45%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)3
Avg Revenue beat(12)-1.92%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)-14.38%
PT rev (3m)-17.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.07%
EPS NY rev (1m)-19.82%
EPS NY rev (3m)-20.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-1.07%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 11.12 | ||
| P/S | 0.24 | ||
| P/FCF | 78.04 | ||
| P/OCF | 6.8 | ||
| P/B | 0.68 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)1.42
EY6.91%
EPS(NY)1.85
Fwd EY9%
FCF(TTM)0.26
FCFY1.28%
OCF(TTM)3.02
OCFY14.71%
SpS85.61
BVpS30.22
TBVpS18.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -14.85% | ||
| ROCE | 2.58% | ||
| ROIC | 1.69% | ||
| ROICexc | 1.76% | ||
| ROICexgc | 2.25% | ||
| OM | 1.72% | ||
| PM (TTM) | N/A | ||
| GM | 28.21% | ||
| FCFM | 0.31% |
ROA(3y)3.5%
ROA(5y)4.51%
ROE(3y)8.85%
ROE(5y)11.61%
ROIC(3y)6.82%
ROIC(5y)6.85%
ROICexc(3y)7.6%
ROICexc(5y)8.13%
ROICexgc(3y)9.73%
ROICexgc(5y)9.57%
ROCE(3y)10.39%
ROCE(5y)10.44%
ROICexcg growth 3Y-22.61%
ROICexcg growth 5Y-31.65%
ROICexc growth 3Y-27.63%
ROICexc growth 5Y-33.84%
OM growth 3Y-20.78%
OM growth 5Y-21.37%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y-2.66%
F-Score4
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 17.8 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 128.43% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 6.67 | ||
| Cash Conversion | 83.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.21 |
F-Score4
WACC9.61%
ROIC/WACC0.18
Cap/Depr(3y)121.57%
Cap/Depr(5y)111.91%
Cap/Sales(3y)2.85%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-71.26%
EPS 3Y-20.25%
EPS 5Y-21.32%
EPS Q2Q%-217.49%
EPS Next Y-10.93%
EPS Next 2Y14.12%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y2.67%
Revenue growth 5Y0.57%
Sales Q2Q%-1.41%
Revenue Next Year0.02%
Revenue Next 2Y1.15%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-54.84%
EBIT growth 3Y-18.66%
EBIT growth 5Y-20.93%
EBIT Next Year88.32%
EBIT Next 3Y35.79%
EBIT Next 5YN/A
FCF growth 1Y116.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y111.03%
OCF growth 3Y-55.91%
OCF growth 5Y-34.95%