NYSE:FL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet.


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 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.


Market Performance


7 Day Return

-2.9%

FL

2.3%

US Specialty Retail

2.8%

US Market


1 Year Return

-4.8%

FL

22.6%

US Specialty Retail

20.9%

US Market

Return vs Industry: FL underperformed the US Specialty Retail industry which returned 22.2% over the past year.

Return vs Market: FL underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

FLIndustryMarket
7 Day-2.9%2.3%2.8%
30 Day3.1%11.2%11.1%
90 Day25.5%6.9%6.5%
1 Year-1.7%-4.8%23.7%22.6%23.6%20.9%
3 Year-3.7%-12.0%78.9%71.3%47.3%37.6%
5 Year-34.0%-42.1%79.3%65.8%94.3%72.9%

Long-Term 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?

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FL ($38.13) is trading below our estimate of fair value ($38.37)

Significantly Below Fair Value: FL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FL is good value based on its PE Ratio (11.9x) compared to the US Specialty Retail industry average (19.5x).

PE vs Market: FL is good value based on its PE Ratio (11.9x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FL is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FL is good value based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Foot Locker forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FL's forecast earnings growth (14.7% per year) is above the savings rate (2.2%).

Earnings vs Market: FL's earnings (14.7% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: FL's earnings are forecast to grow, but not significantly.

Revenue vs Market: FL's revenue (3.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FL's revenue (3.1% 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 (15.6%).


Next Steps

Past Performance

How has Foot Locker performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FL has high quality earnings.

Growing Profit Margin: FL's current net profit margins (4.4%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: FL's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: FL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FL had negative earnings growth (-35.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (14.3%).


Return on Equity

High ROE: FL's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Foot Locker's financial position?


Financial Position Analysis

Short Term Liabilities: FL's short term assets ($2.8B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: FL's short term assets ($2.8B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: FL's debt to equity ratio (4.9%) is considered satisfactory.

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 (755%).

Interest Coverage: FL's interest payments on its debt are well covered by EBIT (141.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FL's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FL's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), 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 (30.2% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Dick Johnson (62 yo)

5.92yrs

Tenure

US$9,222,205

Compensation

Mr. Richard A. Johnson, also known as Dick, has been the Chief Executive Officer at Foot Locker, Inc. since December 1, 2014 and served as it's President since December 1, 2014 until August 2020. Mr. Johns...


CEO Compensation Analysis

Compensation vs Market: Dick's total compensation ($USD9.22M) is above average for companies of similar size in the US market ($USD5.14M).

Compensation vs Earnings: Dick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Johnson
Chairman & CEO5.92yrsUS$9.22m0.25%
$ 9.9m
Lauren Peters
Executive VP & CFO9.33yrsUS$2.53m0.12%
$ 4.9m
Giovanna Cipriano
Senior VP & Chief Accounting Officer11.5yrsno data0.052%
$ 2.1m
James Lance
Vice President of Corporate Finance & Investor Relationsno datano datano data
Sheilagh Clarke
Senior VP6.42yrsno data0.028%
$ 1.1m
Mary Signorino
Senior Director of PR & Communicationsno datano datano data
Elizabeth Norberg
Senior VP & Chief Human Resources Officer2.17yrsno data0.0063%
$ 251.6k
Bryon Milburn
Senior VP & GM of Champs Sports - North Americano datano datano data
William Martin
Executive VP4.42yrsno data0.0091%
$ 361.0k
Vijay Talwar
Executive VP & CEO of EMEA1.75yrsno data0.0021%
$ 84.4k
Andrew Gray
Executive VP & Chief Commercial Officer3.08yrsno data0.00096%
$ 38.2k
Jed Berger
Chief Marketing Officer of North Americano datano datano data

5.2yrs

Average Tenure

53yo

Average Age

Experienced Management: FL's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Johnson
Chairman & CEO5.92yrsUS$9.22m0.25%
$ 9.9m
Alan Feldman
Independent Director15.75yrsUS$279.95k0.070%
$ 2.8m
Matthew McKenna
Independent Director14.5yrsUS$263.44k0.030%
$ 1.2m
Dona Young
Lead Independent Director4.5yrsUS$398.11k0.045%
$ 1.8m
Steven Oakland
Independent Director6.75yrsUS$255.88k0.015%
$ 591.5k
Guillermo Marmol
Independent Director9.75yrsUS$273.44k0.039%
$ 1.5m
Maxine Clark
Independent Director7.83yrsUS$238.44k0.019%
$ 771.8k
Ulice Payne
Independent Director3.92yrsUS$248.44k0.010%
$ 412.8k
Tristan Walker
Independent Director0.75yrno data0.0023%
$ 90.0k
Kimberly Underhill
Independent Director3.92yrsUS$261.44k0.011%
$ 440.6k
Darlene Nicosia
Independent Director0.75yrno data0.0023%
$ 90.0k

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: FL's board of directors are considered experienced (4.5 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$3.980b
  • Shares outstanding: 104.39m
  • 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
FL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer. The company retails athletic footwear, apparel, accessories, and equipment under Foot Locker, Lady Foot L...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:02
End of Day Share Price2020/11/27 00:00
Earnings2020/10/31
Annual Earnings2020/02/01


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.