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 121 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 valuation in line with the averages, but it does not seem to be growing.
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 comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 0.41%, FL is in line with its industry, outperforming 53.72% of the companies in the same industry.
FL has a Return On Invested Capital of 3.13%. This is comparable to the rest of the industry: FL outperforms 50.41% of its industry peers.
FL had an Average Return On Invested Capital over the past 3 years of 4.94%. This is significantly below the industry average of 13.02%.
| 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.
FL's Operating Margin of 2.69% is in line compared to the rest of the industry. FL outperforms 52.07% of its industry peers.
FL's Operating Margin has declined in the last couple of years.
The Gross Margin of FL (29.07%) is worse than 68.59% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FL is destroying value.
Compared to 1 year ago, FL has more shares outstanding
FL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FL has a worse debt to assets ratio.
2.2 Solvency
FL has an Altman-Z score of 2.15. 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 (2.15) which is comparable to the rest of the 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.
FL's Debt to FCF ratio of 4.25 is fine compared to the rest of the industry. FL outperforms 65.29% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that FL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, FL is in the better half of the industry, outperforming 65.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.35
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.70 indicates that FL should not have too much problems paying its short term obligations.
The Current ratio of FL (1.70) is better than 70.25% of its industry peers.
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.
With a Quick ratio value of 0.55, FL perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for FL have decreased by -4.23% in the last year.
FL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.77% yearly.
Looking at the last year, FL shows a decrease in Revenue. The Revenue has decreased by -2.20% in the last year.
Measured over the past years, FL shows a decrease in Revenue. The Revenue has been decreasing by -0.04% on average per year.
EPS 1Y (TTM)-4.23%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%126.32%
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%-5.7%
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 13.87% yearly.
FL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y4.54%
EPS Next 2Y12.44%
EPS Next 3Y13.87%
EPS Next 5YN/A
Revenue Next Year-1.35%
Revenue Next 2Y0.31%
Revenue Next 3Y1%
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
The Price/Earnings ratio is 8.72, which indicates a very decent valuation of FL.
87.60% of the companies in the same industry are more expensive than FL, based on the Price/Earnings ratio.
FL is valuated cheaply when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.34, the valuation of FL can be described as reasonable.
FL's Price/Forward Earnings ratio is rather cheap when compared to the industry. FL is cheaper than 83.47% of the companies in the same industry.
FL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FL is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
FL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FL is cheaper than 78.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as FL's earnings are expected to grow with 13.87% in the coming years.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y12.44%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.86%, FL is a good candidate for dividend investing.
In the last 3 months the price of FL has falen by -34.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.49, FL pays a better dividend. On top of this FL pays more dividend than 95.04% 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 2.44.
| 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.
The dividend of FL decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y12.44%
EPS Next 3Y13.87%
11.86
+0.16 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners105.88%
Inst Owner Change-1.56%
Ins Owners0.86%
Ins Owner Change1.42%
Market Cap1.13B
Analysts67.86
Price Target18.3 (54.3%)
Short Float %15.17%
Short Ratio2.7
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)-12.04%
PT rev (3m)-24.65%
EPS NQ rev (1m)18.14%
EPS NQ rev (3m)-109.41%
EPS NY rev (1m)-6.16%
EPS NY rev (3m)-23.24%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 8.34 | ||
| P/S | 0.14 | ||
| P/FCF | 10.76 | ||
| P/OCF | 3.27 | ||
| P/B | 0.39 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 2.78 |
EPS(TTM)1.36
EY11.47%
EPS(NY)1.42
Fwd EY11.99%
FCF(TTM)1.1
FCFY9.29%
OCF(TTM)3.62
OCFY30.54%
SpS83.86
BVpS30.54
TBVpS18.74
PEG (NY)1.92
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 | 2.15 |
F-Score5
WACC8.84%
ROIC/WACC0.35
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)-4.23%
EPS 3Y-44.06%
EPS 5Y-22.77%
EPS Q2Q%126.32%
EPS Next Y4.54%
EPS Next 2Y12.44%
EPS Next 3Y13.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.2%
Revenue growth 3Y-3.75%
Revenue growth 5Y-0.04%
Sales Q2Q%-5.7%
Revenue Next Year-1.35%
Revenue Next 2Y0.31%
Revenue Next 3Y1%
Revenue Next 5YN/A
EBIT growth 1Y-4.87%
EBIT growth 3Y-42.13%
EBIT growth 5Y-22.47%
EBIT Next Year129.34%
EBIT Next 3Y36.83%
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%