FOOT LOCKER INC (FL)
US3448491049 - Common Stock
Taking everything into account, FL scores 4 out of 10 in our fundamental rating. FL was compared to 126 industry peers in the Specialty Retail industry. FL has a bad profitability rating. Also its financial health evaluation is rather negative. FL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FL had positive earnings in the past year.
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
The Return On Assets of FL (-4.80%) is worse than 65.87% of its industry peers.
FL has a Return On Equity (-11.42%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.61%, FL perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FL is significantly below the industry average of 13.85%.
The 3 year average ROIC (6.81%) for FL is well above the current ROIC(2.61%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -11.42% | ||
| ROIC | 2.61% |
ROA(3y)3.5%
ROA(5y)4.51%
ROE(3y)8.85%
ROE(5y)11.61%
ROIC(3y)6.81%
ROIC(5y)6.84%
1.3 Margins
With a Operating Margin value of 2.72%, FL perfoms like the industry average, outperforming 53.17% of the companies in the same industry.
FL's Operating Margin has declined in the last couple of years.
FL has a worse Gross Margin (27.83%) than 68.25% of its industry peers.
In the last couple of years the Gross Margin of FL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 27.83% |
OM growth 3Y-21.25%
OM growth 5Y-21.65%
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.
The number of shares outstanding for FL has been increased compared to 1 year ago.
The number of shares outstanding for FL has been reduced compared to 5 years ago.
The debt/assets ratio for FL is higher compared to a year ago.
2.2 Solvency
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 Debt to Equity ratio of 0.15. This is in the better half of the industry: FL outperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.72 indicates that FL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.72, FL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
FL has a Quick Ratio of 1.72. This is a bad value and indicates that FL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FL (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.55 |
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%.
The earnings per share for FL have been decreasing by -21.32% on average. This is quite bad
The Revenue has decreased by -6.75% 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 growth Q2Q-60.82%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y2.67%
Revenue growth 5Y0.57%
Revenue growth Q2Q1.62%
3.2 Future
Based on estimates for the next years, FL will show a very strong growth in Earnings Per Share. The EPS will grow by 21.09% on average per year.
The Revenue is expected to grow by 2.03% on average over the next years.
EPS Next Y11.92%
EPS Next 2Y26.98%
EPS Next 3Y21.09%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y1.93%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.48, the valuation of FL can be described as correct.
Based on the Price/Earnings ratio, FL is valued a bit cheaper than 73.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of FL to the average of the S&P500 Index (24.92), we can say FL is valued slightly cheaper.
FL is valuated correctly with a Price/Forward Earnings ratio of 13.83.
71.43% of the companies in the same industry are more expensive than FL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FL to the average of the S&P500 Index (21.49), we can say FL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FL is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
FL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FL's earnings are expected to grow with 21.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y26.98%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, FL has a reasonable but not impressive dividend return.
The stock price of FL dropped by -23.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.46, FL pays a better dividend. On top of this FL pays more dividend than 91.27% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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
The earnings of FL are negative and hence is the payout ratio. FL will probably not be able to sustain this dividend level.
DP-34.24%
EPS Next 2Y26.98%
EPS Next 3Y21.09%
FOOT LOCKER INC
NYSE:FL (4/26/2024, 7:04:00 PM)
After market: 22.1 +0.12 (+0.55%)21.98
+0.05 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.48 | ||
| Fwd PE | 13.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.8% | ||
| ROE | -11.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 27.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-71.26%
EPS 3Y-20.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y2.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y