As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Foot Locker, Inc. (NYSE: FL).
Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker’s merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.
A quick look at the share price history for Foot Locker Inc (below) over the past twelve months shows that the price is up 85%. Here’s why the company remains undervalued.
Summary
Market Cap: $5.91 Billion
Enterprise Value: $7.11 Billion
Operating Earnings
Operating Earnings: $988 Million
Acquirer’s Multiple
Acquirer’s Multiple: 7.19
Free Cash Flow (TTM)
Free Cash Flow: $1.42 Billion
FCF/EV Yield
FCF/EV Yield: 20%
Other Indicators
Piotroski F-Score: 8
Altman Z-Score: 3.02
Beneish M-Score: -2.78
Shareholder Yield
Shareholder Yield: 3%
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