Fact based stock research
Foot Locker (NYSE:FL)

US3448491049

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Foot Locker stock research in summary

footlocker-inc.com

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Foot Locker (Apparel Retail, USA) shares have much better financial characteristics than comparable stocks. Shares of Foot Locker are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), are safely financed (Safety Rank of 95, which means low debt burdens), but show below-average growth (Growth Rank of 41). ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Foot Locker's financial characteristics. As the company Foot Locker's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 41) while being safely financed (Obermatt Safety Rank of 95), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 55% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	41
Safety Rank	95
Combined Rank	78

Country	USA
Industry	Apparel Retail
Index	Dividends USA, Employee Focus US, S&P MIDCAP
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Foot Locker

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	97	95	55
GROWTH
GROWTH	87	27	17	41
SAFETY
SAFETY	63	93	86	95
SENTIMENT
SENTIMENT	n/a	43	51	^new
360° VIEW
360° VIEW	n/a	79	72	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 3-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Foot Locker is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	93	97	95	55
GROWTH
GROWTH	87	27	17	41
SAFETY
SAFETY	63	93	86	95
COMBINED
COMBINED	100	89	82	78

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Foot Locker the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Foot Locker shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Foot Locker. Price-to-Sales (P/S) is 71, which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value regarding Foot Locker's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 58% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 70. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Foot Locker (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Foot Locker's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	70	70	66	71
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	81	39	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	70	82	78	70
DIVIDEND YIELD
DIVIDEND YIELD	68	90	97	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	93	97	95	55

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Foot Locker; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Foot Locker shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Foot Locker. Profit Growth has a rank of 75, which means that currently professionals expect the company to grow its profits more than 75% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 53 (above 53% of alternative investments). But Sales Growth has a below the median rank of 34, which means that, currently, professionals expect the company to grow less than 66% of its competitors, and Capital Growth also has a lower rank of 25. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Foot Locker. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	53	35	24	34
PROFIT GROWTH
PROFIT GROWTH	14	70	18	75
CAPITAL GROWTH
CAPITAL GROWTH	n/a	21	62	25
STOCK RETURNS
STOCK RETURNS	62	29	29	53
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	87	27	17	41

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Foot Locker.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 95 (better than 95% compared with alternatives) for 2024, the company Foot Locker has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Foot Locker is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Foot Locker. Leverage is at 72, meaning the company has a below-average debt-to-equity ratio. It has less debt than 72% of its competitors. Refinancing is at a rank of 80, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 80% of its competitors. Finally, Liquidity is also good at a rank of 72, which means that the company generates more profit to service its debt than 72% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 95 (better than 95% compared with alternatives), Foot Locker has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Foot Locker but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	76	72	72
REFINANCING
REFINANCING	59	80	80	80
LIQUIDITY
LIQUIDITY	55	82	75	72
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63	93	86	95

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Foot Locker and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	26	6	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	43	47	^new
MARKET PULSE
MARKET PULSE	n/a	66	56	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	51	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Foot Locker.
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