Foot Locker
Market Cap
US$4.1b
Last Updated
2020/02/20 00:24 UTC
Data Sources
Company Financials +
Executive Summary
Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer.
Rewards
Risk Analysis
No risks detected for FL from our risk checks.
Snowflake Analysis
6 star dividend payer with solid track record.
Similar Companies
Share Price & News
How has Foot Locker's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.7%
FL
0.7%
US Specialty Retail
0.5%
US Market
1 Year Return
-34.3%
FL
18.0%
US Specialty Retail
20.3%
US Market
Return vs Industry: FL underperformed the US Specialty Retail industry which returned 18% over the past year.
Return vs Market: FL underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| FL | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.7% | 0.7% | 0.5% |
| 30 Day | -0.4% | 1.3% | 2.0% |
| 90 Day | -2.0% | 5.6% | 9.4% |
| 1 Year | -32.0%-34.3% | 19.8%18.0% | 22.8%20.3% |
| 3 Year | -37.2%-42.5% | 46.7%39.7% | 50.1%40.4% |
| 5 Year | -20.3%-29.4% | 50.8%38.5% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Foot Locker's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Does Foot Locker, Inc. (NYSE:FL) Have A Particularly Volatile Share Price?2 weeks ago | Simply Wall St
Can Foot Locker, Inc.'s (NYSE:FL) ROE Continue To Surpass The Industry Average?4 weeks ago | Simply Wall St
Is Foot Locker (NYSE:FL) Using Too Much Debt?Valuation
Is Foot Locker undervalued compared to its fair value and its price relative to the market?
34.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FL ($39.44) is trading below our estimate of fair value ($60.26)
Significantly Below Fair Value: FL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FL is good value based on its PE Ratio (8.5x) compared to the Specialty Retail industry average (16.7x).
PE vs Market: FL is good value based on its PE Ratio (8.5x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: FL is poor value based on its PEG Ratio (9.1x)
Price to Book Ratio
PB vs Industry: FL is overvalued based on its PB Ratio (1.7x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Foot Locker forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
0.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FL's forecast earnings growth (0.9% per year) is below the savings rate (1.7%).
Earnings vs Market: FL's earnings (0.9% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: FL's earnings are forecast to grow, but not significantly.
Revenue vs Market: FL's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: FL's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FL's Return on Equity is forecast to be high in 3 years time (20%)
Next Steps
Past Performance
How has Foot Locker performed over the past 5 years?
-4.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FL has high quality earnings.
Growing Profit Margin: FL's current net profit margins (6.4%) are higher than last year (4.2%).
Past Earnings Growth Analysis
Earnings Trend: FL's earnings have declined by -4.7% per year over the past 5 years.
Accelerating Growth: FL's earnings growth over the past year (54.3%) exceeds its 5-year average (-4.7% per year).
Earnings vs Industry: FL earnings growth over the past year (54.3%) exceeded the Specialty Retail industry 6.4%.
Return on Equity
High ROE: FL's Return on Equity (21.2%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Foot Locker's financial position?
Financial Position Analysis
Short Term Liabilities: FL's short term assets ($2.3B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: FL's short term assets ($2.3B) do not cover its long term liabilities ($3.0B).
Debt to Equity History and Analysis
Debt Level: FL's debt to equity ratio (5%) is considered satisfactory.
Reducing Debt: FL's debt to equity ratio has increased from 5% to 5% over the past 5 years.
Debt Coverage: FL's debt is well covered by operating cash flow (619.7%).
Interest Coverage: FL earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: FL has a high level of physical assets or inventory.
Debt Coverage by Assets: FL's debt is covered by short term assets (assets are 19.2x debt).
Next Steps
Dividend
What is Foot Locker's current dividend yield, its reliability and sustainability?
3.85%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FL's dividend (3.85%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: FL's dividend (3.85%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
Stable Dividend: FL's dividends per share have been stable in the past 10 years.
Growing Dividend: FL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.9%), FL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FL's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Dick Johnson (61yo)
5.2yrs
Tenure
US$13,401,976
Compensation
Mr. Richard A. Johnson, also known as Dick, has been the Chief Executive Officer and President of Foot Locker, Inc. since December 1, 2014. Mr. Johnson served as Chief Operating Officer at Foot Locker, Inc ...
CEO Compensation Analysis
Compensation vs Market: Dick's total compensation ($USD13.40M) is above average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Dick's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.2yrs | US$13.40m | 0.26% $10.6m | |
| Executive VP & CFO | 8.6yrs | US$3.47m | 0.12% $4.9m | |
| Executive VP and Chief Information & Customer Connectivity Officer | 4.5yrs | US$2.49m | 0.015% $620.3k | |
| Executive VP & CEO of Asia Pacific | 4yrs | US$4.15m | 0.028% $1.2m | |
| Executive VP & CEO of North America | 4yrs | US$5.31m | 0.050% $2.0m | |
| Senior VP & Chief Accounting Officer | 10.8yrs | no data | 0.051% $2.1m | |
| Vice President of Corporate Finance & Investor Relations | 0yrs | no data | no data | |
| Senior VP | 5.7yrs | no data | 0.027% $1.1m | |
| Senior Director of PR & Communications | 0yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1.4yrs | no data | 0.0063% $260.2k |
4.8yrs
Average Tenure
56.5yo
Average Age
Experienced Management: FL's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.2yrs | US$13.40m | 0.26% $10.6m | |
| Independent Director | 15yrs | US$312.26k | 0.066% $2.7m | |
| Independent Director | 13.8yrs | US$273.02k | 0.026% $1.1m | |
| Independent Lead Director | 3.8yrs | US$383.62k | 0.044% $1.8m | |
| Independent Director | 6yrs | US$261.17k | 0.014% $560.9k | |
| Independent Director | 9yrs | US$283.02k | 0.035% $1.4m | |
| Independent Director | 7.1yrs | US$252.02k | 0.016% $645.8k | |
| Independent Director | 3.2yrs | US$244.02k | 0.0067% $274.7k | |
| Independent Director | 19.1yrs | US$305.48k | 0.049% $2.0m | |
| Independent Director | 3.2yrs | US$255.15k | 0.0069% $286.2k |
6.5yrs
Average Tenure
65.5yo
Average Age
Experienced Board: FL's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Foot Locker, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Foot Locker, Inc.
- Ticker: FL
- Exchange: NYSE
- Founded: 1879
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$4.124b
- Shares outstanding: 104.57m
- Website: https://www.footlocker-inc.com
Number of Employees
Location
- Foot Locker, Inc.
- 330 West 34th Street
- New York
- New York
- 10001
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| WOO | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0IQK | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| FOOT | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
Biography
Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, North America and International. The company retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02. It also sells team licensed merchandise for high school and other athletes. In addition, it operates sites for eastbay.com, final-score.com, and eastbayteamsales.com, as well as footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, footlocker.com.au, runnerspoint.com, sidestep-shoes.com, footlocker.hk, footlocker.sg, and footlocker.my. As of May 4, 2019, the company operated 3,201 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand; and franchised 119 Foot Locker stores in the Middle East, as well as 10 Runners Point franchised stores in Germany. Foot Locker, Inc. has a strategic partnership with adidas to develop adidas Made For (AM4) shoes. The company was founded in 1879 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:24 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/11/02 |
| Annual Earnings | 2019/02/02 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.