| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
FL Stock Overview
Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer.
Foot Locker Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$43.17 |
| 52 Week High | US$66.71 |
| 52 Week Low | US$39.76 |
| Beta | 1.38 |
| 1 Month Change | 2.98% |
| 3 Month Change | -11.01% |
| 1 Year Change | -9.21% |
| 3 Year Change | -23.93% |
| 5 Year Change | -36.52% |
| Change since IPO | 30.82% |
Recent News & Updates
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.
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...
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.
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...
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
| FL | US Specialty Retail | US 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
| FL volatility | |
|---|---|
| FL Average Weekly Movement | 5.9% |
| Specialty Retail Industry Average Movement | 7.5% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1879 | 33,522 | Dick Johnson | https://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
| FL fundamental statistics | |
|---|---|
| Market Cap | US$4.33b |
| Earnings (TTM) | US$913.00m |
| Revenue (TTM) | US$8.81b |
4.7x
P/E Ratio0.5x
P/S RatioIs FL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FL income statement (TTM) | |
|---|---|
| Revenue | US$8.81b |
| Cost of Revenue | US$5.75b |
| Gross Profit | US$3.06b |
| Expenses | US$2.14b |
| Earnings | US$913.00m |
Last Reported Earnings
Oct 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 9.10 |
| Gross Margin | 34.69% |
| Net Profit Margin | 10.37% |
| Debt/Equity Ratio | 16.8% |
How did FL perform over the long term?
See historical performance and comparisonDividends
2.8%
Current Dividend Yield10%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:13 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/10/30 |
| Annual Earnings | 2021/01/30 |
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.