FOOT LOCKER INC (FL) Stock Fundamental Analysis
NYSE:FL - New York Stock Exchange, Inc. - US3448491049 - Common Stock - Currency: USD
FL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While FL seems to be doing ok healthwise, there are quite some concerns on its profitability. FL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FL was profitable.
FL had a positive operating cash flow in the past year.
Of the past 5 years FL 4 years were profitable.
FL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FL's Return On Assets of -6.21% is on the low side compared to the rest of the industry. FL is outperformed by 71.79% of its industry peers.
The Return On Equity of FL (-14.85%) is worse than 60.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.69%, FL is in line with its industry, outperforming 41.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FL is significantly below the industry average of 12.41%.
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
With a Operating Margin value of 1.72%, FL perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, FL has a worse debt to assets ratio.
2.2 Solvency
FL has an Altman-Z score of 2.19. This is not the best score and indicates that FL is in the grey zone with still only limited risk for bankruptcy at the moment.
FL has a Altman-Z score (2.19) 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.
FL has a Debt to FCF ratio (17.80) which is comparable to the rest of the industry.
FL has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
FL has a better Debt to Equity ratio (0.15) than 65.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 17.8 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.18
WACC9.62%
2.3 Liquidity
FL has a Current Ratio of 1.67. This is a normal value and indicates that FL is financially healthy and should not expect problems in meeting its short term obligations.
FL's Current ratio of 1.67 is fine compared to the rest of the industry. FL outperforms 72.65% 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
The earnings per share for FL have decreased strongly by -56.22% in the last year.
Measured over the past years, FL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.32% on average per year.
Looking at the last year, FL shows a decrease in Revenue. The Revenue has decreased by -0.07% in the last 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)-56.22%
EPS 3Y-20.25%
EPS 5Y-21.32%
EPS Q2Q%10%
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y2.67%
Revenue growth 5Y0.57%
Sales Q2Q%-1.41%
3.2 Future
FL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.96% yearly.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-9.75%
EPS Next 2Y14.21%
EPS Next 3Y15.96%
EPS Next 5YN/A
Revenue Next Year0.14%
Revenue Next 2Y1.17%
Revenue Next 3Y1.86%
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
FL is valuated rather expensively with a Price/Earnings ratio of 21.65.
FL's Price/Earnings ratio is a bit cheaper when compared to the industry. FL is cheaper than 67.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of FL to the average of the S&P500 Index (29.39), we can say FL is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.29, which indicates a very decent valuation of FL.
Based on the Price/Forward Earnings ratio, FL is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 94.38. FL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FL is valued cheaper than 85.47% of the companies in the same industry.
FL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.33 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
A more expensive valuation may be justified as FL's earnings are expected to grow with 15.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.21%
EPS Next 3Y15.96%
5. Dividend
5.1 Amount
FL has a Yearly Dividend Yield of 6.86%, which is a nice return.
Compared to an average industry Dividend Yield of 4.06, FL pays a better dividend. On top of this FL pays more dividend than 96.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, FL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
5.2 History
The dividend of FL decreases each year by -2.24%.
FL has been paying a dividend for at least 10 years, so it has 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 2Y14.21%
EPS Next 3Y15.96%
FOOT LOCKER INC
NYSE:FL (2/12/2025, 10:56:50 AM)
19.055
-0.3 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.19%
Inst Owner Change-32.42%
Ins Owners0.96%
Ins Owner Change-11.26%
Market Cap1.81B
Analysts68.57
Price Target24.29 (27.47%)
Short Float %9.22%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend1.2
Dividend Growth(5Y)-2.24%
DP0%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.11%
Min EPS beat(2)-21.92%
Max EPS beat(2)34.14%
EPS beat(4)3
Avg EPS beat(4)27.34%
Min EPS beat(4)-21.92%
Max EPS beat(4)81.3%
EPS beat(8)5
Avg EPS beat(8)25.78%
EPS beat(12)9
Avg EPS beat(12)22.09%
EPS beat(16)13
Avg EPS beat(16)31.24%
Revenue beat(2)0
Avg Revenue beat(2)-3.79%
Min Revenue beat(2)-5.31%
Max Revenue beat(2)-2.26%
Revenue beat(4)1
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-5.31%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.72%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)5
Avg Revenue beat(16)-0.86%
PT rev (1m)-0.05%
PT rev (3m)-15.36%
EPS NQ rev (1m)-22.57%
EPS NQ rev (3m)-3.93%
EPS NY rev (1m)1.33%
EPS NY rev (3m)-18.65%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.22 | ||
| P/FCF | 72.33 | ||
| P/OCF | 6.3 | ||
| P/B | 0.63 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.02 |
EPS(TTM)0.88
EY4.62%
EPS(NY)1.85
Fwd EY9.72%
FCF(TTM)0.26
FCFY1.38%
OCF(TTM)3.02
OCFY15.87%
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 | 2.19 |
F-Score4
WACC9.62%
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)-56.22%
EPS 3Y-20.25%
EPS 5Y-21.32%
EPS Q2Q%10%
EPS Next Y-9.75%
EPS Next 2Y14.21%
EPS Next 3Y15.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.07%
Revenue growth 3Y2.67%
Revenue growth 5Y0.57%
Sales Q2Q%-1.41%
Revenue Next Year0.14%
Revenue Next 2Y1.17%
Revenue Next 3Y1.86%
Revenue Next 5YN/A
EBIT growth 1Y-54.84%
EBIT growth 3Y-18.66%
EBIT growth 5Y-20.93%
EBIT Next Year89.69%
EBIT Next 3Y35.62%
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%