FL Footlocker stock Story

FL -  USA Stock  

USD 57.25  0.02  0.0349%

Foot Locker is scheduled to announce its earnings today. The next earnings report is expected on the 26th of February 2021. Although many aggressive traders are getting into consumer cyclical space, Foot Locker may or may not be your first choice. We will evaluate why recent Foot Locker price moves suggest a bounce in December.
Published over six months ago
View all stories for Footlocker | View All Stories
Will Foot Locker (NYSE:FL) debt increase in December
The company reports 3.29 B of total liabilities with total debt to equity ratio (D/E) of 1.37, which is normal for its line of buisiness. Foot Locker has a current ratio of 1.66, which is generally considered normal. On a scale of 0 to 100, Foot Locker holds a performance score of 15. The firm shows a Beta (market volatility) of -0.3134, which means possible diversification benefits within a given portfolio. Let's try to break down what Foot Locker's beta means in this case. As returns on the market increase, returns on owning Foot Locker are expected to decrease at a much lower rate. During the bear market, Foot Locker is likely to outperform the market. Although it is vital to follow Foot Locker historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for Foot Locker, which you can use to evaluate the performance of the firm. Please utilizes Foot Locker sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change to make a quick decision on whether Foot Locker price patterns will revert.
Footlocker financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Footlocker, including all of Footlocker'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 Footlocker assets, the company is considered highly leveraged. Understanding the composition and structure of overall Footlocker 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 FL Footlocker Total Liabilities

Footlocker liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Footlocker 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 Footlocker balance sheet include debt obligations and money owed to different Footlocker vendors, workers, and loan providers. Below is the chart of FL Footlocker short long-term liabilities accounts currently reported on its balance sheet.
You can use Footlocker financial leverage analysis tool to get a better grip on understanding its financial position

How important is Footlocker's Liquidity

Footlocker financial leverage refers to using borrowed capital as a funding source to finance Footlocker ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Footlocker 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 Footlocker'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 Footlocker, but it might be worth checking our own buy vs. sell analysis

An Additional Perspective On Footlocker

The entity generated the yearly revenue of 7.41 B. Reported Net Income was 194 M with gross profit of 3.56 B.

Liabilities Breakdown

994.7 M
Current Liabilities
1.7 B
Long-Term Liabilities
Total Liabilities2.74 Billion
Current Liabilities994.74 Million
Long-Term Liabilities1.74 Billion

Another 3 percent hike for Foot Locker

The value at risk is down to -4.3 as of today. As of the 20th of November, Foot Locker shows the Downside Deviation of 2.49, coefficient of variation of 493.48, and Mean Deviation of 2.17. 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 41.33 per share. Given that Foot Locker has jensen alpha of 0.575, we urge you to verify Foot Locker's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While some other entities under the footwear & accessories industry are still a bit expensive, Foot Locker may offer a potential longer-term growth to stakeholders. To sum up, as of the 20th of November 2020, we believe Foot Locker is currently overvalued. It almost neglects market trends and projects below average chance of financial distress in the next two years. Our overall 30 days advice on the company is Hold.

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 Footlocker. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com