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FL

Foot LockerNYSE:FL Stock Report

Last Price

US$43.17

Market Cap

US$4.3b

7D

-0.5%

1Y

-9.2%

Updated

22 Jan, 2022

Data

Company Financials +
FL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

FL Stock Overview

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer.

Foot Locker Competitors

Burlington Stores

NYSE:BURL

US$14.2b

American Eagle Outfitters

NYSE:AEO

US$3.6b

Boot Barn Holdings

NYSE:BOOT

US$2.8b

Urban Outfitters

NasdaqGS:URBN

US$2.6b

Price History & Performance

Summary of all time highs, changes and price drops for Foot Locker
Historical stock prices
Current Share PriceUS$43.17
52 Week HighUS$66.71
52 Week LowUS$39.76
Beta1.38
1 Month Change2.98%
3 Month Change-11.01%
1 Year Change-9.21%
3 Year Change-23.93%
5 Year Change-36.52%
Change since IPO30.82%

Recent News & Updates

Jan 10

Foot Locker: This Underdog Looks Set To Come Out On Top

Foot Locker's business does not deserve to be trading near 52-week lows. The company is coming back strong from the pandemic with nine-month YTD sales up 23.5% as mall traffic recovers. Cash flows generated from operating activities continue to provide a great yield for shareholders around 13.0% at the current $42.05 share price. A zero-growth discounted cash flow implies an intrinsic value of $76.79 for a 45% margin of safety to the current $42.05 share price.

Jan 05
Foot Locker (NYSE:FL) Seems To Use Debt Quite Sensibly

Foot Locker (NYSE:FL) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Dec 29

Foot Locker: Further Weakness Should Present A Buying Opportunity

Foot Locker released its Q3 results in late November, reporting revenue of ~$2.19 billion, up 4% year-over-year and 13% vs. Q3 2019 levels. The company also enjoyed meaningful margin expansion in the quarter, with gross margins climbing 200 basis points on a two-year basis despite supply chain headwinds. However, while Foot Locker is set up for a massive increase in annual EPS in FY2021 based on estimates, this could mark peak earnings medium-term. The good news is that this appears to be mostly priced into the stock with FL trading at ~7x FY2022 earnings estimates, so further weakness should present a buying opportunity.

Dec 23
Foot Locker's (NYSE:FL) Upcoming Dividend Will Be Larger Than Last Year's

Foot Locker's (NYSE:FL) Upcoming Dividend Will Be Larger Than Last Year's

Foot Locker, Inc. ( NYSE:FL ) will increase its dividend on the 28th of January to US$0.30. This makes the dividend...

Dec 15

Foot Locker: Poised For Growth

Contrary to consensus opinion, we think in-store footwear shopping will always have a meaningful market position because a large percentage of consumers like to ensure fit and comfort. In our view, the transition of large vendors to increased direct-to-consumer strategies will help Foot Locker, as vendors simultaneously overhaul their wholesale business, cutting 99.9% of their partners. FL's minority investment in GOAT will help optimize sales and drive growth through differentiated customer experience and engagement. From our perspective, concerns about the company’s supply chain are overblown; however, we find merit in concerns over the company’s margin. We rate the stock as a strong buy, with significant upside based on DCF analysis.

Shareholder Returns

FLUS Specialty RetailUS Market
7D-0.5%-6.7%-6.1%
1Y-9.2%-8.0%4.2%

Return vs Industry: FL matched the US Specialty Retail industry which returned -8.4% over the past year.

Return vs Market: FL underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is FL's price volatile compared to industry and market?
FL volatility
FL Average Weekly Movement5.9%
Specialty Retail Industry Average Movement7.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: FL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187933,522Dick Johnsonhttps://www.footlocker-inc.com

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer. The company engages in the retail of athletic footwear, apparel, accessories, equipment, and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, Runners Point, and Sidestep brand names. As of January 30, 2021, it operated through 2,998 retail stores in 27 countries across the United States, Canada, Europe, Australia, New Zealand, and Asia; and 127 franchised Foot Locker stores located in the Middle East, as well as through various e-commerce sites and mobile apps.

Foot Locker Fundamentals Summary

How do Foot Locker's earnings and revenue compare to its market cap?
FL fundamental statistics
Market CapUS$4.33b
Earnings (TTM)US$913.00m
Revenue (TTM)US$8.81b

4.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FL income statement (TTM)
RevenueUS$8.81b
Cost of RevenueUS$5.75b
Gross ProfitUS$3.06b
ExpensesUS$2.14b
EarningsUS$913.00m

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.10
Gross Margin34.69%
Net Profit Margin10.37%
Debt/Equity Ratio16.8%

How did FL perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

10%

Payout Ratio

Valuation

Is Foot Locker undervalued compared to its fair value and its price relative to the market?

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FL ($43.17) is trading below our estimate of fair value ($71.72)

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 (4.7x) compared to the US Specialty Retail industry average (8x).

PE vs Market: FL is good value based on its PE Ratio (4.7x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: FL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FL is good value based on its PB Ratio (1.3x) compared to the US Specialty Retail industry average (2.5x).


Future Growth

How is Foot Locker forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FL's earnings are forecast to decline over the next 3 years (-10% per year).

Earnings vs Market: FL's earnings are forecast to decline over the next 3 years (-10% per year).

High Growth Earnings: FL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FL's revenue (2.3% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: FL's revenue (2.3% 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 low in 3 years time (16.8%).


Past Performance

How has Foot Locker performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FL has high quality earnings.

Growing Profit Margin: FL's current net profit margins (10.4%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: FL's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: FL's earnings growth over the past year (174.6%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: FL earnings growth over the past year (174.6%) exceeded the Specialty Retail industry 151.5%.


Return on Equity

High ROE: FL's Return on Equity (27.3%) is considered high.


Financial Health

How is Foot Locker's financial position?


Financial Position Analysis

Short Term Liabilities: FL's short term assets ($2.9B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: FL's short term assets ($2.9B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: FL has more cash than its total debt.

Reducing Debt: FL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: FL's debt is well covered by operating cash flow (158.6%).

Interest Coverage: FL's interest payments on its debt are well covered by EBIT (108x coverage).


Balance Sheet


Dividend

What is Foot Locker current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FL's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: FL's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (3.61%).


Stability and Growth of Payments

Stable Dividend: FL's dividend payments have been volatile 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 low payout ratio (9.6%), FL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FL's dividends in 3 years are forecast to be well covered by earnings (24.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Dick Johnson (63 yo)

7.08yrs

Tenure

US$11,941,320

Compensation

Mr. Richard A. Johnson, also known as Dick, has been the Chief Executive Officer at Foot Locker, Inc. since December 1, 2014 and serves as President since November 2021 and served as it's President since D...


CEO Compensation Analysis

Compensation vs Market: Dick's total compensation ($USD11.94M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Dick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FL's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: FL's board of directors are considered experienced (7.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Foot Locker, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Foot Locker, Inc.
  • Ticker: FL
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Apparel Retail
  • Sector: Retail
  • Implied Market Cap: US$4.333b
  • Shares outstanding: 100.37m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:13
End of Day Share Price2022/01/21 00:00
Earnings2021/10/30
Annual Earnings2021/01/30


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.