Stock Watch: FL’s Uniform Adjusted EPS’ has not been growing, and the drop last week is just the market recognizing what was already apparent

FL’s profitability is materially distorted by accounting for operating leases under GAAP
As such, their UAFRS EPS’ only grew 9% last year, and is expected to remain roughly flat this upcoming year
After making the appropriate UAFRS adjustments, FL is trading at a 15.0x Uniform P/E post-drop, which is a discount to averages, but FL is only expected to grow EPS’ by 0%-1% annually, suggesting these valuations are warranted

Submitted June 13, 2017 at 08:30PM by Valens_Research http://ift.tt/2slZjqN

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