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FOOT LOCKER INC (FL) Stock Fundamental Analysis

NYSE:FL - New York Stock Exchange, Inc. - US3448491049 - Common Stock - Currency: USD

23.88  -0.02 (-0.08%)

Fundamental Rating

4

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.


Dividend Valuation Growth Profitability Health

3

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.
FL Yearly Net Income VS EBIT VS OCF VS FCFFL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M 1B

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 RankSector 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%
FL Yearly ROA, ROE, ROICFL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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 RankSector 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%
FL Yearly Profit, Operating, Gross MarginsFL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

4

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.
FL Yearly Shares OutstandingFL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
FL Yearly Total Debt VS Total AssetsFL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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 RankSector Rank
Debt/Equity 0.15
Debt/FCF 4.25
Altman-Z 2.33
ROIC/WACC0.33
WACC9.49%
FL Yearly LT Debt VS Equity VS FCFFL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

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 RankSector Rank
Current Ratio 1.7
Quick Ratio 0.55
FL Yearly Current Assets VS Current LiabilitesFL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

4

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.
FL Yearly Revenue VS EstimatesFL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
FL Yearly EPS VS EstimatesFL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

4

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 RankSector Rank
PE 22.32
Fwd PE 14.09
FL Price Earnings VS Forward Price EarningsFL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF 21.73
EV/EBITDA 5.58
FL Per share dataFL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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

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 RankSector 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
FL Yearly Dividends per shareFL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.5 1 1.5

5.3 Sustainability

DP0%
EPS Next 2Y11.64%
EPS Next 3Y12.72%
FL Yearly Income VS Free CF VS DividendFL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

FOOT LOCKER INC

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)05-15 2025-05-15/bmo
Earnings (Next)08-26 2025-08-26/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%