NYSE:FL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 40.8% below its fair value

Earnings grew by 54.3% over the past year

Pays a high and reliable dividend of 3.81%

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

-2.8%

FL

-1.1%

US Specialty Retail

-0.3%

US Market


1 Year Return

-24.9%

FL

25.7%

US Specialty Retail

18.6%

US Market

Return vs Industry: FL underperformed the US Specialty Retail industry which returned 25.7% over the past year.

Return vs Market: FL underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

FLIndustryMarket
7 Day-2.8%-1.1%-0.3%
30 Day-13.7%2.7%2.2%
90 Day1.1%7.7%5.6%
1 Year-22.6%-24.9%27.8%25.7%21.1%18.6%
3 Year-44.6%-49.0%34.9%28.0%45.6%36.2%
5 Year-20.4%-29.0%51.4%38.6%71.1%52.2%

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

Valuation

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

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FL ($39.85) is trading below our estimate of fair value ($67.35)

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 (8.6x) compared to the Specialty Retail industry average (16.5x).

PE vs Market: FL is good value based on its PE Ratio (8.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FL is poor value based on its PEG Ratio (9.2x)


Price to Book Ratio

PB vs Industry: FL is overvalued based on its PB Ratio (1.8x) 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 (2.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: FL's revenue (2.1% 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 (19.7%).


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 3.2%.


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 (559%).

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?

3.81%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Foot Locker before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: FL's dividend (3.81%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: FL's dividend (3.81%) is in the top 25% of dividend payers in the US market (3.7%)


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 (33.1% payout ratio).


Next Steps

Management

What is the CEO of Foot Locker's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Dick Johnson (61yo)

5yrs

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 ($USD13.40M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: FL's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FL's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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.


Management Team

  • Lauren Peters (57yo)

    Executive VP & CFO

    • Tenure: 8.4yrs
    • Compensation: US$3.47m
  • Giovanna Cipriano (49yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 10.6yrs
  • Dick Johnson (61yo)

    Chairman

    • Tenure: 5yrs
    • Compensation: US$13.40m
  • Lew Kimble (60yo)

    Executive VP & CEO of Asia Pacific

    • Tenure: 3.8yrs
    • Compensation: US$4.15m
  • Sheilagh Clarke (59yo)

    Senior VP

    • Tenure: 5.5yrs
  • Jake Jacobs (56yo)

    Executive VP & CEO of North America

    • Tenure: 3.8yrs
    • Compensation: US$5.31m
  • Pawan Verma (42yo)

    Executive VP and Chief Information & Customer Connectivity Officer

    • Tenure: 4.3yrs
    • Compensation: US$2.49m
  • James Lance

    Vice President of Corporate Finance & Investor Relations

    • Tenure: 0yrs
  • Elizabeth Norberg (52yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.3yrs
  • Mary Signorino

    Senior Director of PR & Communications

    • Tenure: 0yrs

Board Members

  • Alan Feldman (68yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$312.26k
  • Matt McKenna (68yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$273.02k
  • Dona Young (65yo)

    Independent Lead Director

    • Tenure: 3.6yrs
    • Compensation: US$383.62k
  • Steve Oakland (58yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$261.17k
  • Guillermo Marmol (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$283.02k
  • Maxine Clark (71yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$252.02k
  • Ulice Payne (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$244.02k
  • Cheryl Turpin (71yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$305.48k
  • Dick Johnson (61yo)

    Chairman

    • Tenure: 5yrs
    • Compensation: US$13.40m
  • Kim Underhill (54yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$255.15k

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$4.118b
  • Shares outstanding: 107.04m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
WOODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0IQKLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
FOOTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:35
End of Day Share Price2019/12/06 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.