FOOT LOCKER INC (FL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FL - US3448491049 - Common Stock
24.01 USD
-0.09 (-0.37%)
24.0497 USD
+0.04 (+0.17%)
We assign a fundamental rating of 3 out of 10 to FL. FL was compared to 122 industry peers in the Specialty Retail industry. FL has a bad profitability rating. Also its financial health evaluation is rather negative. FL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FL was profitable.
In the past year FL had a positive cash flow from operations.
Of the past 5 years FL 4 years were profitable.
Each year in the past 5 years FL had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -5.92%, FL is not doing good in the industry: 69.92% of the companies in the same industry are doing better.
The Return On Equity of FL (-14.93%) is comparable to the rest of the industry.
FL has a Return On Invested Capital (2.79%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FL is significantly below the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.92% | ||
| ROE | -14.93% | ||
| ROIC | 2.79% |
ROA(3y)-0.1%
ROA(5y)3.05%
ROE(3y)-0.21%
ROE(5y)7.72%
ROIC(3y)4.94%
ROIC(5y)6.74%
1.3 Margins
In the last couple of years the Profit Margin of FL has declined.
FL's Operating Margin of 2.25% is in line compared to the rest of the industry. FL outperforms 51.22% of its industry peers.
FL's Operating Margin has declined in the last couple of years.
FL's Gross Margin of 28.92% is on the low side compared to the rest of the industry. FL is outperformed by 67.48% of its industry peers.
In the last couple of years the Gross Margin of FL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.92% |
OM growth 3Y-39.88%
OM growth 5Y-22.44%
PM growth 3Y-75.3%
PM growth 5Y-52.38%
GM growth 3Y-5.44%
GM growth 5Y-1.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FL is destroying value.
Compared to 1 year ago, FL has more shares outstanding
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 to FCF ratio of 74.00. This is a negative value and a sign of low solvency as FL would need 74.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 74.00, FL is in line with its industry, outperforming 47.15% of the companies in the same industry.
FL has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, FL is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 74 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC9.29%
2.3 Liquidity
FL has a Current Ratio of 1.59. This is a normal value and indicates that FL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FL (1.59) is better than 69.11% of its industry peers.
A Quick Ratio of 0.45 indicates that FL may have some problems paying its short term obligations.
FL has a Quick ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for FL have decreased by 0.00% in the last year.
The earnings per share for FL have been decreasing by -22.77% on average. This is quite bad
FL shows a decrease in Revenue. In the last year, the revenue decreased by -3.58%.
FL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.04% yearly.
EPS 1Y (TTM)0%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%-440%
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%-2.26%
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 8.04% yearly.
Based on estimates for the next years, FL will show a decrease in Revenue. The Revenue will decrease by -0.36% on average per year.
EPS Next Y-8.87%
EPS Next 2Y3.37%
EPS Next 3Y8.04%
EPS Next 5YN/A
Revenue Next Year-3.04%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.36%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.25, which means the current valuation is very expensive for FL.
Compared to the rest of the industry, the Price/Earnings ratio of FL indicates a somewhat cheap valuation: FL is cheaper than 62.60% of the companies listed in the same industry.
FL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
FL is valuated correctly with a Price/Forward Earnings ratio of 16.52.
Based on the Price/Forward Earnings ratio, FL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
FL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FL is valued a bit cheaper than 77.24% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 382.48 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.37%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.86%, FL is a good candidate for dividend investing.
FL's Dividend Yield is rather good when compared to the industry average which is at 6.07. FL pays more dividend than 95.94% of the companies 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 | 6.86% |
5.2 History
FL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y3.37%
EPS Next 3Y8.04%
24.01
-0.09 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.05%
Inst Owner Change-90.48%
Ins Owners0.52%
Ins Owner Change-30%
Market Cap2.29B
Revenue(TTM)7.86B
Net Income(TTM)-385.00M
Analysts69.17
Price Target23.47 (-2.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-260.71%
Min EPS beat(2)-441.72%
Max EPS beat(2)-79.7%
EPS beat(4)1
Avg EPS beat(4)-131.85%
Min EPS beat(4)-441.72%
Max EPS beat(4)15.94%
EPS beat(8)5
Avg EPS beat(8)-44.7%
EPS beat(12)7
Avg EPS beat(12)-23.99%
EPS beat(16)11
Avg EPS beat(16)-12.76%
Revenue beat(2)0
Avg Revenue beat(2)-4.95%
Min Revenue beat(2)-6.22%
Max Revenue beat(2)-3.68%
Revenue beat(4)0
Avg Revenue beat(4)-5.31%
Min Revenue beat(4)-6.22%
Max Revenue beat(4)-3.68%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)3
Avg Revenue beat(12)-2.41%
Revenue beat(16)3
Avg Revenue beat(16)-2.47%
PT rev (1m)0.62%
PT rev (3m)3.54%
EPS NQ rev (1m)1.95%
EPS NQ rev (3m)-37.59%
EPS NY rev (1m)4%
EPS NY rev (3m)-11.31%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 16.52 | ||
| P/S | 0.29 | ||
| P/FCF | 382.48 | ||
| P/OCF | 10.38 | ||
| P/B | 0.89 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)0.85
EY3.54%
EPS(NY)1.45
Fwd EY6.05%
FCF(TTM)0.06
FCFY0.26%
OCF(TTM)2.31
OCFY9.63%
SpS82.23
BVpS26.97
TBVpS17.74
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.92% | ||
| ROE | -14.93% | ||
| ROCE | 3.53% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.96% | ||
| ROICexgc | 3.64% | ||
| OM | 2.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.92% | ||
| FCFM | 0.08% |
ROA(3y)-0.1%
ROA(5y)3.05%
ROE(3y)-0.21%
ROE(5y)7.72%
ROIC(3y)4.94%
ROIC(5y)6.74%
ROICexc(3y)5.34%
ROICexc(5y)7.9%
ROICexgc(3y)6.81%
ROICexgc(5y)9.71%
ROCE(3y)6.25%
ROCE(5y)8.53%
ROICexgc growth 3Y-39.97%
ROICexgc growth 5Y-20.87%
ROICexc growth 3Y-39.98%
ROICexc growth 5Y-24.18%
OM growth 3Y-39.88%
OM growth 5Y-22.44%
PM growth 3Y-75.3%
PM growth 5Y-52.38%
GM growth 3Y-5.44%
GM growth 5Y-1.76%
F-Score4
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 74 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 106.44% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | N/A |
F-Score4
WACC9.29%
ROIC/WACC0.3
Cap/Depr(3y)125.81%
Cap/Depr(5y)114.77%
Cap/Sales(3y)3.07%
Cap/Sales(5y)2.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%-440%
EPS Next Y-8.87%
EPS Next 2Y3.37%
EPS Next 3Y8.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.58%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%-2.26%
Revenue Next Year-3.04%
Revenue Next 2Y-0.55%
Revenue Next 3Y-0.36%
Revenue Next 5YN/A
EBIT growth 1Y23.78%
EBIT growth 3Y-42.13%
EBIT growth 5Y-22.47%
EBIT Next Year110.42%
EBIT Next 3Y34.47%
EBIT Next 5YN/A
FCF growth 1Y104.2%
FCF growth 3Y-38.75%
FCF growth 5Y-27.07%
OCF growth 1Y142.86%
OCF growth 3Y-19.69%
OCF growth 5Y-13.1%
FOOT LOCKER INC / FL FAQ
What is the ChartMill fundamental rating of FOOT LOCKER INC (FL) stock?
ChartMill assigns a fundamental rating of 3 / 10 to FL.
What is the valuation status of FOOT LOCKER INC (FL) stock?
ChartMill assigns a valuation rating of 3 / 10 to FOOT LOCKER INC (FL). This can be considered as Overvalued.
What is the profitability of FL stock?
FOOT LOCKER INC (FL) has a profitability rating of 3 / 10.
What is the valuation of FOOT LOCKER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FOOT LOCKER INC (FL) is 28.25 and the Price/Book (PB) ratio is 0.89.
What is the expected EPS growth for FOOT LOCKER INC (FL) stock?
The Earnings per Share (EPS) of FOOT LOCKER INC (FL) is expected to decline by -8.87% in the next year.