FL (FOOT LOCKER)
- P/E: 15.2
- GAAP DILUTED YO-Y EPS GROWTH LAST QUARTER: $.28
- SECTOR: RETAIL TRADE
- ASSETS-LIABILITIES: 3.39
- DIVIDEND: 1.68%
According to statisticbrain, Foot
Locker was the largest shoe retailer in the United States as of
8/13/2016. Foot Locker posted a 24.5% year-over-year EPS gain in the
most recent quarter, meaning its successful business is still
growing. The company has a low price-to-earnings multiple and a high
rate of growth with solid financials, giving the stock room to climb.
While many retail stores have faired
poorly due to the recent emergence of Amazon and other online
retailers, Foot Locker does not suffer because their services are
hard to duplicate online. You can not try on a shoe from Amazon
prior to purchasing, for example. For customers who do not need to
try on the shoe, either because they have already purchased the same
shoe, or have tried on shoes of the same brand, Foot Locker also
sells shoes through Amazon. In this manner, Foot Locker is utilizing
the expanding online shopping market, while still having the fortune
to be positioned in a retail sector which typically requires the
customers' physical presence due to discrepancies between
manufacturers' standards.
Foot Locker has an impressive ratio of
assets to liabilities at 3.39. This means they have great
flexibility with spending for improvement of store fronts, research,
advertising, and development. The company also realized a slight
increase in gross margin in their last quarter. They offer a
dividend to investors, and the stock price is undervalued at a
price-to-earnings multiple of approximately 15.2. The stock has the
means, demonstrated business practices, and market position to grow.
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