Foot Locker Inc
Find Ratings ReportsFOOT LOCKER INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.
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| Income Statement | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Net Sales ($mil) | 1780.0 | 1695.0 |
| EBITDA ($mil) | 237.0 | 222.0 |
| EBIT ($mil) | 198.0 | 186.0 |
| Net Income ($mil) | 127.0 | 119.0 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 945.0 | 970.0 |
| Total Assets ($mil) | 3762.0 | 3704.0 |
| Total Debt ($mil) | 129.0 | 132.0 |
| Equity ($mil) | 2578.0 | 2579.0 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 32.98 | 32.63 |
| EBITDA Margin | 13.31 | 13.09 |
| Operating Margin | 11.12 | 10.97 |
| Sales Turnover | 2.01 | 1.96 |
| Return on Assets | 14.77 | 15.36 |
| Return on Equity | 21.56 | 22.06 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 3.83 | 3.45 |
| Debt/Capital | 0.05 | 0.05 |
| Interest Expense | 3.0 | 2.0 |
| Interest Coverage | 66.0 | 93.0 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 133.08 | 139.33 |
| Div / share | 0.28 | 0.25 |
| EPS | 0.94 | 0.84 |
| Book value / share | 19.37 | 18.51 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2134737.0 | 3290511.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.68 for the Specialty Retail industry and a discount compared to the S&P 500 average of 24.84. Conducting a second comparison, its price-to-book ratio of 3.40 indicates a premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 12.08. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry 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 within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FL 16.31 | Peers 21.68 | FL 11.33 | Peers 14.12 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FL is trading at a 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FL 12.56 | Peers 19.39 | FL 0.69 | Peers 1.91 | |||||||||||||||||||||
|
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 |
|
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| FL 3.40 | Peers 12.08 | FL 2.02 | Peers -1.58 | |||||||||||||||||||||
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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 |
|
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| FL 1.16 | Peers 1.45 | FL 4.34 | Peers 7.50 | |||||||||||||||||||||
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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 discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. FL significantly trails its peers on the basis of sales growth |
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