NYSE:FL
$14.59
(3/19 4:00PM)
| Open | $14.65 |
Mkt Cap | $2.3 Billion |
| High | $14.79 |
52Wk High | $14.94 |
| Low | $14.34 |
52Wk Low | $9.38 |
| Volume | 3.9 Million |
Avg Vol 10D | 3.6 Million |
FL Revenue
As a value investing shop, we are interested in seeing how FL's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.72x and the low end of the range at 0.42x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for FL of 0.47x is well below its normal historic Price to Sales levels. At a price of $14.55, FL is 18% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
FL Cash Earnings
Looking at FL specifically in their Cash Earnings capabilities, Ockham views FL as significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for FL, the current level of Cash Earnings compared to its historical levels helps identify where FL is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 37.31 and a historical low Cash Earnings per share ratio of 22.31, an investor can relate where value becomes optimal.
Just recall that when a stock's price, as in the cases of FL, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for FL's Price to Cash Earnings ratio is 306% below the current ratio of 121.25. That is not an insignificant amount, and diminishes our overall outlook on FL. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
FL Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In FL’s case, the estimated annual dividend is $0.60 resulting in a current dividend yield of 4.12%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from FL against the historic high and low levels over the past 10 years. The highest dividend yield from FL over this period was 10.30% while the lowest dividend yield was 0.00% While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as FL that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 20.00% below the median yield.
Zero Hedge: Is Foot Locker, Inc. Able to Constrain Costs?
FL costs were discussed on Zero Hedge, and may be of interest to investors.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; FL has received less coverage from the financial media in business television and blogs.
“… FOOT LOCKER expects sales to rise to $6B in five years. Ingersoll-Rand prohibits non-U. S. subsidiaries from selling products to customers in Iran. …”
Foot Locker, Inc. News Appeared on Squawk Box
News has broken via the television and viral blogs regarding FL, so investors should take an interest in learning what was said.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Foot Locker, Inc. has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on FL because the price has gotten too high to be justified by the fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Foot Locker, Inc. underperforming. Take notice of the news on this stock because it is up $0.67 since the close of trading yesterday.
“… FOOT LOCKER. It was increased from 16 to 14. Citigroup, officemax was removed from the top picks. Officemax, raised to 23 from $15. . …”
Notice a Discussion Covering FL Appeared Recently in the Financial News
Foot Locker, Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on InBusiness With Margaret Brennan and Francine Lacqua.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; FL has received less coverage from the financial media in business television and blogs.
“… They said their board approved the stock buyback plan and FOOT LOCKER is up more than 7. 5%. Also some support for what disney. …”
First FL News on Squawk On The Street in More Than a Month
There has not been much to report from FL in the last few weeks at least, but Squawk On The Street talked about the stock recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, FL has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Foot Locker, Inc. at the current price level because according to our methodology it is not supported by the fundamentals. Check the news on this stock because there is a catalyst that has allowed this stock to advance 7.56% today. The crowd at The Motley Fool does not like FL and believes that it will Underperform.
“… FOOT LOCKER is at the 16-month high. At last check the stock, look at that, up 7. 5% after its fourth quarter miss by a penny. …”
Earnings Per Share at FL Were on the Docket at Seeking Alpha Wall St Breakfast
Whenever a reliable source like Seeking Alpha Wall St Breakfast talks about earnings or news on earnings, we think it warrants bringing attention to it.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Foot Locker, Inc. has been talked about more than normal recently. The crowd at The Motley Fool does not like FL and believes that it will Underperform. At Ockham, we were not advising buying Foot Locker, Inc. at the price level stated on the report $14.55 because according to our methodology it is not supported by the fundamentals. However, the recent drop is beginning to bring it back to a more justifiable level. Please be aware that FL is trading off $1.54 today, and is clearly being affected by the latest news.
“… (PR) FOOT LOCKER (FL): Q4 EPS of $0. 24 misses by $0. 01. Revenue of $1. 3B (+1%) in-line. Comparable-store sales down 2. 3%. Shares +1. 1% AH. …”
Foot Locker, Inc. News Appeared on Bulls & Bears
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Foot Locker, Inc..
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Foot Locker, Inc. has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on FL because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Foot Locker, Inc. underperforming.
“… on fox business. All that and conan's severance deal. >> sorry if I am late. I had a job interview with lady FOOT LOCKER. …”
A View of FL's Growth on Closing Bell
Sales growth is an absolutely essential metric to understand when researching a stock. Today, FL's sales growth was the topic on Closing Bell.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Foot Locker, Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on FL because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Foot Locker, Inc. has actually sunk a bit in comparison to the others.
“… As you can see, FOOT LOCKER shares tonight up better than > > > well, we're live today from the consumer electronics show here in las vegas, and of course las vegas has been hit ... …”
News Breaking on Foot Locker, Inc. on The Opening Bell on Fox Business
Foot Locker, Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
Foot Locker, Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; FL has received less coverage from the financial media in business television and blogs.
“… And robert gray FOOT LOCKER. Robert: this is jobs friday and FOOT LOCKER will eliminate positions there and going to appoint richard johnson as president and chief executive ... …”
Discussion Turns to FL and Merger Talk on Mad Money
While we do not know the details relating to FL and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Foot Locker, Inc. underperforming. The Ockham valuation currently has a Fairly Valued stance on FL because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Foot Locker, Inc. has actually sunk a bit in comparison to the others.
“… caller: I wanted to follow-up on your retail call and see what you thought about FOOT LOCKER, with the 6% yield. Is it an accidental yielder and one to be bought or one to > > …”
First FL News on Squawk On The Street in More Than a Month
After a month of relative quiet from FL, they have appeared back in the news.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Foot Locker, Inc. has been talked about more than normal recently. Its interesting to note that the crowd at The Motley Fool does not like FL and believes that it will Underperform. The improving valuation of Foot Locker, Inc. has prompted us to upgrade this stock as of Saturday, November 07, 2009. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on FL.
“… FOOT LOCKER, a third quarter loss of 6 million from a profit of year ago. The ceo citing week sales in the united states. And we are out of time. > > we are. …”