FOOT LOCKER INC (FL) Stock Fundamental Analysis
NYSE:FL - New York Stock Exchange, Inc. - US3448491049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to FL. FL was compared to 120 industry peers in the Specialty Retail industry. The financial health of FL is average, but 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 has a Return On Assets (0.18%) which is in line with its industry peers.
The Return On Equity of FL (0.41%) is comparable to the rest of the industry.
FL has a Return On Invested Capital (3.13%) 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 13.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.41% | ||
| ROIC | 3.13% |
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
FL has a Profit Margin (0.15%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FL has declined.
With a Operating Margin value of 2.69%, FL perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
In the last couple of years the Operating Margin of FL has declined.
FL's Gross Margin of 29.07% is on the low side compared to the rest of the industry. FL is outperformed by 69.17% of its industry peers.
In the last couple of years the Gross Margin of FL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.69% | ||
| PM (TTM) | 0.15% | ||
| GM | 29.07% |
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.
The number of shares outstanding for FL has been increased compared to 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
An Altman-Z score of 2.33 indicates that FL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.33, FL perfoms like the industry average, outperforming 49.17% of the companies in the same industry.
The Debt to FCF ratio of FL is 4.25, which is a neutral value as it means it would take FL, 4.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FL (4.25) is better than 65.83% of its industry peers.
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 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.33
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.70 indicates that FL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.70, FL is doing good in the industry, outperforming 71.67% of the companies in the same industry.
FL has a Quick Ratio of 1.70. This is a bad value and indicates that FL is not financially healthy enough and could expect problems in meeting its short term obligations.
FL has a Quick ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.83% over the past year.
Measured over the past years, FL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.77% on average per year.
FL shows a decrease in Revenue. In the last year, the revenue decreased by -2.20%.
The Revenue has been decreasing by -0.04% on average over the past years.
EPS 1Y (TTM)13.83%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%-131.82%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%N/A
3.2 Future
The Earnings Per Share is expected to grow by 12.72% on average over the next years. This is quite good.
Based on estimates for the next years, FL will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
EPS Next Y2.76%
EPS Next 2Y11.64%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue Next Year-1.33%
Revenue Next 2Y0.29%
Revenue Next 3Y0.95%
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.
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
With a Price/Earnings ratio of 22.32, FL is valued on the expensive side.
Based on the Price/Earnings ratio, FL is valued a bit cheaper than 63.33% of the companies in the same industry.
FL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
The Price/Forward Earnings ratio is 14.09, which indicates a correct valuation of FL.
Based on the Price/Forward Earnings ratio, FL is valued a bit cheaper than the industry average as 69.17% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FL to the average of the S&P500 Index (22.10), we can say FL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
FL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FL is cheaper than 79.17% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than FL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.73 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FL does not grow enough to justify the current Price/Earnings ratio.
FL's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.09
PEG (5Y)N/A
EPS Next 2Y11.64%
EPS Next 3Y12.72%
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 5.28. FL pays more dividend than 95.83% of the companies in the same industry.
FL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
5.2 History
FL has been paying a dividend for at least 10 years, so it has a reliable track record.
FL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y11.64%
EPS Next 3Y12.72%
NYSE:FL (5/29/2025, 3:09:07 PM)
23.88
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners105.88%
Inst Owner Change-5.27%
Ins Owners0.86%
Ins Owner Change1.65%
Market Cap2.28B
Analysts67.86
Price Target18.18 (-23.87%)
Short Float %16.1%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.99%
Min EPS beat(2)-21.92%
Max EPS beat(2)15.94%
EPS beat(4)3
Avg EPS beat(4)27.37%
Min EPS beat(4)-21.92%
Max EPS beat(4)81.3%
EPS beat(8)5
Avg EPS beat(8)17.11%
EPS beat(12)9
Avg EPS beat(12)22.34%
EPS beat(16)13
Avg EPS beat(16)31.53%
Revenue beat(2)0
Avg Revenue beat(2)-5.67%
Min Revenue beat(2)-6.02%
Max Revenue beat(2)-5.31%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-6.02%
Max Revenue beat(4)-2.26%
Revenue beat(8)1
Avg Revenue beat(8)-3.24%
Revenue beat(12)3
Avg Revenue beat(12)-2.21%
Revenue beat(16)5
Avg Revenue beat(16)-0.79%
PT rev (1m)-12.65%
PT rev (3m)-24.58%
EPS NQ rev (1m)-19.44%
EPS NQ rev (3m)-109.84%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-23.9%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 14.09 | ||
| P/S | 0.29 | ||
| P/FCF | 21.73 | ||
| P/OCF | 6.61 | ||
| P/B | 0.78 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)1.07
EY4.48%
EPS(NY)1.7
Fwd EY7.1%
FCF(TTM)1.1
FCFY4.6%
OCF(TTM)3.61
OCFY15.12%
SpS83.59
BVpS30.44
TBVpS18.68
PEG (NY)8.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.41% | ||
| ROCE | 3.97% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 4.36% | ||
| OM | 2.69% | ||
| PM (TTM) | 0.15% | ||
| GM | 29.07% | ||
| FCFM | 1.31% |
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%
ROICexcg growth 3Y-39.97%
ROICexcg 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-Score5
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 118.81% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 9.77 | ||
| Cash Conversion | 82.73% | ||
| Profit Quality | 875% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.33 |
F-Score5
WACC9.49%
ROIC/WACC0.33
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)13.83%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%-131.82%
EPS Next Y2.76%
EPS Next 2Y11.64%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%N/A
Revenue Next Year-1.33%
Revenue Next 2Y0.29%
Revenue Next 3Y0.95%
Revenue Next 5YN/A
EBIT growth 1Y-4.87%
EBIT growth 3Y-42.13%
EBIT growth 5Y-22.47%
EBIT Next Year121.29%
EBIT Next 3Y39.56%
EBIT Next 5YN/A
FCF growth 1Y169.54%
FCF growth 3Y-38.75%
FCF growth 5Y-27.07%
OCF growth 1Y279.12%
OCF growth 3Y-19.69%
OCF growth 5Y-13.1%