Foot Locker Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>FL</div>
FL -- USA Stock  

USD 32.87  0.24  0.72%

Foot Locker is scheduled to announce its earnings today. The next earnings report is expected on the 27th of November 2020. The stock continues to experience above-average trading activities. Although many aggressive traders are getting into consumer cyclical space, Foot Locker may or may not be your first choice.
Published over a month ago
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Thinking to drop Foot Locker (NYSE:FL) based on its current debt commitments?
The company reports 3.62 B of total liabilities with total debt to equity ratio (D/E) of 1.57, which is normal for its line of buisiness. Our investment recommendation module complements current analysts and expert consensus on Foot Locker. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. The company has Net Profit Margin (PM) of 2.94 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is typical in the industry. Likewise, it shows Net Operating Margin (NOM) of 8.11 %, which signifies that for every $100 of sales, it has a net operating income of 0.08.
Foot Locker financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Foot Locker, including all of Foot Locker's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Foot Locker assets, the company is considered highly leveraged. Understanding the composition and structure of overall Foot Locker debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Foot Locker Total Liabilities

Foot Locker liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Foot Locker has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Foot Locker balance sheet include debt obligations and money owed to different Foot Locker vendors, workers, and loan providers. Below is the chart of Foot Locker short long-term liabilities accounts currently reported on its balance sheet.
You can use Foot Locker financial leverage analysis tool to get a better grip on understanding its financial position

How important is Foot Locker's Liquidity

Foot Locker financial leverage refers to using borrowed capital as a funding source to finance Foot Locker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Foot Locker financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Foot Locker's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Foot Locker, but it might be worth checking our own buy vs. sell analysis

Breaking down Foot Locker Indicators

The new indifference towards the small price fluctuations of Foot Locker could raise concerns from stakeholders as the firm closed today at a share price of 27.45 on 15,178,365 in volume. The company management teams did not add any value to Foot Locker investors in July. However, most investors can still diversify their portfolios with Foot Locker to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.9. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Foot Locker partners.

Asset Breakdown

2.8 B
Assets Non Current
2.5 B
Current Assets
Total Assets5.35 Billion
Current Assets2.55 Billion
Assets Non Current2.8 Billion
Goodwill201.05 Million
Tax Assets158.95 Million

Will Foot Locker pull back in September 2020?

Foot Locker new potential upside upsurges over 6.73. As of the 21st of August, Foot Locker shows the Coefficient Of Variation of 7215.8, mean deviation of 3.23, and Downside Deviation of 3.96. Foot Locker technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Foot Locker, which can be compared to its rivals. Please confirm Foot Locker jensen alpha, as well as the relationship between the potential upside and skewness to decide if Foot Locker is priced favorably, providing market reflects its regular price of 27.57 per share. Given that Foot Locker has jensen alpha of 0.0478, we urge you to verify Foot Locker's prevailing market performance to make sure the company can sustain itself at a future point.

When is the right time to buy or sell Foot Locker? Buying stocks such as Foot Locker isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To summarize, as of the 21st of August 2020, we see that Foot Locker moves indifferently to market moves. The company is fairly valued with below average probability of distress within the next 24 months. However, our up-to-date 30 days buy-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Foot Locker. Please refer to our Terms of Use for any information regarding our disclosure principles.

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