Is Foot Locker Inc. (FL) Stock Cheap Or Risky?


At the last check on Friday, Foot Locker Inc.’s (NYSE:FL) stock was up $0.85, moving up 2.26 percent to $38.38. The average number of shares traded per day over the past five days has been 5,449,860 shares. 1 time new highs have been achieved over the past 5 days, with a $5.29 gain in that time frame. In the last twenty days, the average volume was 3,313,930, while in the previous 50 days, it was 2,816,688.

Since last month, FL stock rose 15.41%. Shares of the company fell to $29.79 on 11/09/22, the lowest level in the past month. A 52-week high of $50.34 was reached on 01/26/22 after having rallying from a 52-week low of $23.85. Since the beginning of this year, FL’s stock price has dropped by -13.98% or -$5.34, and marked a new high 4 times. However, the stock has declined by -23.76% since its 52-week high.

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FL stock investors should be aware that Foot Locker Inc. (FL) stock had its last reported insider trading activity 35 days ago on Oct 21. Vesa Equity Investment S.a r.l, the 10% Owner of the company, disposed of 1,316 shares for $32.02 on Oct 21. It resulted in a $42,136 divestment by the insider. Vesa Equity Investment S.a r.l sold 153,072 shares at an average price of $32.41 on Oct 20. The insider now owns 11,469,887 shares following the transaction. On Oct 19, 10% Owner Vesa Equity Investment S.a r.l sold 101,460 shares at $32.06 apiece. The transaction was valued at $3,252,432.

Valuation Metrics

Right now, Foot Locker Inc. (FL) has a P/E ratio of about 7.67. The stock’s beta is 1.17. Besides these, the trailing price-to-sales (P/S) ratio of 0.37, the price-to-book (PB) ratio of 1.10.

The latest dividend of $0.40 per share was paid out, remained unchanged from last year’s $0.40. On Monday February 28 2022, a $0.10 dividend increase was announced.

Financial Health

In the three months ended July 30, Foot Locker Inc.’s quick ratio stood at 0.40, while its current ratio was 1.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending July 30 was 0.14, and the total debt-to-equity ratio was 0.14. On the profitability front, the trailing twelve-month gross margin is 33.40% percent. In the year ended July 30, operating margins totaled 9.10%. Based on annual data, FL earned $3.08 billion in gross profit and brought in $8.96 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.00%. Return on equity (ROE) for the past 12 months was 25.40%.

In Foot Locker Inc.’s quarter-end financial report for July 30, it reported total debt of $449.0 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. FL’s revenue fell -10.17% to $2.17 billion during the quarter, while net income inched up to $2.06 billion. While analysts expected Foot Locker Inc. to report $0.79 quarterly earnings, the actual figure was $1.1 per share, beating the consensus estimate by 39.20%. During the quarter, the company generated $190.0 million in EBITDA. The liabilities of Foot Locker Inc. were 4.65 billion at the end of its most recent quarter ended July 30, and its total debt was $3.29 billion. The value of shareholders’ equity is $93.3 million.

Technical Picture

This quick technical analysis looks at Foot Locker Inc.’s (FL) price momentum. With a historical volatility rate of 70.91%, the RSI 9-day stood at 70.32% on 23 November.

With respect to its five-day moving average, the current Foot Locker Inc. price is up by +16.03% percent or $5.29. At present, FL shares trade +23.40% above its 20-day simple moving average and +56.09% percent above its 100-day simple moving average. However, the stock is currently trading approximately -1.90% below its SMA50 and -14.70% below its SMA200.

Stochastic coefficient K was 87.46% and Stochastic coefficient D was 81.66%, while ATR was 1.98. Given the Stochastic reading of 93.00% for the 14-day period, the RSI (14) reading has been calculated as 66.13%. As of today, the MACD Oscillator reading stands at 2.23, while the 14-day reading stands at 3.49.


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