Foot Locker Inc.
Find Ratings Reports
0.57 |
1.30%
FOOT LOCKER INC's gross profit margin for the second quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.20% from the same quarter last year.
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| Income Statement | Q2 FY19 | Q2 FY18 |
|---|---|---|
| Net Sales ($mil) | 1774.0 | 1782.0 |
| EBITDA ($mil) | 141.0 | 159.0 |
| EBIT ($mil) | 95.0 | 115.0 |
| Net Income ($mil) | 60.0 | 88.0 |
| Balance Sheet | Q2 FY19 | Q2 FY18 |
|---|---|---|
| Cash & Equiv. ($mil) | 944.0 | 951.0 |
| Total Assets ($mil) | 6720.0 | 3832.0 |
| Total Debt ($mil) | 3370.0 | 124.0 |
| Equity ($mil) | 2512.0 | 2482.0 |
| Profitability | Q2 FY19 | Q2 FY18 |
|---|---|---|
| Gross Profit Margin | 30.1 | 30.25 |
| EBITDA Margin | 7.94 | 8.92 |
| Operating Margin | 5.36 | 6.45 |
| Sales Turnover | 1.19 | 2.06 |
| Return on Assets | 7.73 | 7.98 |
| Return on Equity | 20.7 | 12.32 |
| Debt | Q2 FY19 | Q2 FY18 |
|---|---|---|
| Current Ratio | 1.99 | 3.5 |
| Debt/Capital | 0.57 | 0.05 |
| Interest Expense | 3.0 | 3.0 |
| Interest Coverage | 31.67 | 38.33 |
| Share Data | Q2 FY19 | Q2 FY18 |
|---|---|---|
| Shares outstanding (mil) | 109.62 | 115.63 |
| Div / share | 0.38 | 0.35 |
| EPS | 0.55 | 0.75 |
| Book value / share | 22.92 | 21.47 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3668843.0 | 3564098.0 |
HOLD. FOOT LOCKER INC's P/E ratio indicates a significant discount compared to an average of 21.57 for the Clothing and Clothing Accessories Stores subsector and a significant discount compared to the S&P 500 average of 21.72. To use another comparison, its price-to-book ratio of 1.83 indicates a discount versus the S&P 500 average of 3.24 and a significant discount versus the subsector average of 29.26. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, FOOT LOCKER INC proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FL 9.13 | Peers 23.92 | FL 6.71 | Peers 17.27 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FL is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FL is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FL 7.93 | Peers 20.65 | FL 1.47 | Peers 3.91 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. FL is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FL trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| FL 1.83 | Peers 29.26 | FL 81.10 | Peers 17.53 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FL is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FL is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| FL 0.58 | Peers 1.86 | FL 1.22 | Peers 7.22 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FL is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FL significantly trails its peers on the basis of sales growth. |
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