Simple Concepts Research Group

Cheap Stock to Watch: Foot Locker (FL)

by | Sep 22, 2021 | Stock Picks

Foot Locker (FL) Company Overview & Stock Price Forecast

Stock rating for Foot Locker (FL) and stock price target for 2021. Also, a look at recent financial data and key multiples for this bargain stock.

foot locker stock fl price

FL Stock Rating

Stock Price Target: $64.19

Quick Points

  • Price/Free-Cash-Flow: 8.24
  • Price/Sales: 0.68
  • Prices/Earnings: 5.07
  • EV/EBITDA: 5.08
  • ROIC: 18.86%

Earnings Yield

The current earnings yield for FL is 19.68%, in comparison to 2.89% for the S&P 500 and 1.37% for the 10-year treasury bond.

The median earnings yield for the speciality retail industry where FL operates is 6.96%.

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Stock Price Target: $64.19

Recent Financial Results

  • Q2 2021, net income of $430 million, or $4.09 per share (compared to net income of $45 million, or $0.43 per share, for the prior-year period)
  • Total sales increase of 9.5% to $2.27B Q2 2021 (compared to sales of $2.07B in the prior year)
  • Earnings per share for the first six-month of 2021 totaled $4.17 (compared to $0.05 per share in the same period for 2020)
  • YTD sales of $4.42B, an increase of 36.1% compared to the sales of $3.25B in prior year period
  • Total cash position, net debt, of $1.73B, higher than the same period last year by $484 million (in Q2, the company spent $8 million to repurchase 125,000 shares)
  • Q2 company returned $29 million to shareholders through share repurchase and dividends
  • Company acquired WSS and atmos (total of $1.11B, deals expected to close in Q3 2021)

Company Overview

Foot Locker operates as an apparel and athletic footwear retailer. The company sells athletic footwear, apparel, accessories, equipment, and licensed team merchandise. It operates under the following brand names / stores: Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, Runners Point, and Sidestep.

The company currently operates 2,911 retail stores in 27 countries across the US, Canada, Europe, Australia, New Zealand, and Asia. The company also operates 134 franchised stores in the Middle East. Foot Locker makes it’s merchandise available through various e-commerce sites and mobile apps as well.

The company was founded in 1879 and is headquartered in New York, New York. The current CEO is Richard Johnson.

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