Foot Locker Intrinsic Value – Mutual of America Capital Management LLC Decreases Foot Locker, Stake by 2.0%
August 9, 2023
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Mutual of America Capital Management LLC recently reduced their ownership of Foot Locker ($NYSE:FL), Inc. by 2.0% in the first quarter of this year. It is one of the most popular shoe stores in the world, selling shoes from brands such as Nike, adidas, Reebok, and Puma. Foot Locker has been affected by the pandemic due to store closures and people staying at home.
Despite this, the company was able to remain profitable. While there is still some uncertainty in the market, analysts are optimistic about the future of Foot Locker.
Analysis – Foot Locker Intrinsic Value
At GoodWhale, we have conducted an extensive analysis of FOOT LOCKER‘s wellbeing. Our proprietary Valuation Line analysis has revealed that the intrinsic value of FOOT LOCKER share is around $48.8. This intrinsic value suggests that FOOT LOCKER is currently undervalued by 46.8%. Currently, the stock is traded at $26.0, which is a significant discount compared to the intrinsic value. We believe investors can benefit significantly from this discrepancy and take advantage of the opportunity to purchase FOOT LOCKER stock at a discounted price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Foot Locker. More…
| Total Revenues | Net Income | Net Margin |
| 8.52k | 245 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Foot Locker. More…
| Operations | Investing | Financing |
| 76 | -116 | -197 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Foot Locker. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.7k | 4.42k | 35.26 |
Key Ratios Snapshot
Some of the financial key ratios for Foot Locker are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.2% | 13.3% | 4.7% |
| FCF Margin | ROE | ROA |
| -2.0% | 7.6% | 3.3% |
Peers
The company operates in more than 20 countries and has over 3,500 stores. Its main competitors are Zumiez Inc, Abercrombie & Fitch Co, and TJX Companies Inc.
– Zumiez Inc ($NASDAQ:ZUMZ)
Zumiez is a publicly traded company with a market capitalization of 398.36 million as of 2022. The company has a return on equity of 16.06%. Zumiez is a specialty retailer of apparel, footwear, and accessories for young men and women. The company operates over 800 stores in the United States, Canada, and Europe.
– Abercrombie & Fitch Co ($NYSE:ANF)
Abercrombie & Fitch Co is an American lifestyle retailer that focuses on casual wear for young consumers. The company operates through three segments: Domestic, International, and Direct-to-Consumer. As of 2022, Abercrombie & Fitch Co had a market capitalization of 816.97 million and a return on equity of 14.85%. The company’s domestic segment includes stores in the United States and Puerto Rico. The international segment consists of stores in Europe, Asia, Canada, Mexico, and the Middle East. The Direct-to-Consumer segment includes e-commerce operations in the United States and international markets.
– TJX Companies Inc ($NYSE:TJX)
The TJX Companies, Inc. is an American multinational off-price department store chain, based in Framingham, Massachusetts. It operates TJ Maxx, Marshalls, HomeGoods, Sierra Trading Post, and HomeSense stores in the United States; Winners, HomeSense, and Marshalls stores in Canada; T.K. Maxx stores in the United Kingdom, Ireland, Germany, Poland, Austria, and the Netherlands; and Trade Secret stores in Australia.
Summary
Foot Locker, Inc. is a retail company that specializes in the sale of athletic footwear and apparel. Investors should assess their current investment strategies in light of these market conditions and consider other potential opportunities that may present themselves in the near future.
