NORDSTROM INC (JWN)
US6556641008 - Common Stock
JWN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. While JWN is still in line with the averages on profitability rating, there are concerns on its financial health. JWN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JWN had positive earnings in the past year.
In the past year JWN had a positive cash flow from operations.
JWN had positive earnings in 4 of the past 5 years.
JWN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.29%, JWN perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
The Return On Equity of JWN (29.96%) is better than 84.38% of its industry peers.
With a decent Return On Invested Capital value of 7.79%, JWN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JWN is below the industry average of 11.47%.
The last Return On Invested Capital (7.79%) for JWN is above the 3 year average (7.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 29.96% | ||
| ROIC | 7.79% |
ROA(3y)2.13%
ROA(5y)0.85%
ROE(3y)26.53%
ROE(5y)-19.19%
ROIC(3y)7.35%
ROIC(5y)N/A
1.3 Margins
JWN has a Profit Margin (1.90%) which is comparable to the rest of the industry.
JWN's Profit Margin has declined in the last couple of years.
The Operating Margin of JWN (3.45%) is comparable to the rest of the industry.
JWN's Operating Margin has declined in the last couple of years.
JWN has a worse Gross Margin (36.54%) than 62.50% of its industry peers.
In the last couple of years the Gross Margin of JWN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.45% | ||
| PM (TTM) | 1.9% | ||
| GM | 36.54% |
OM growth 3YN/A
OM growth 5Y-7.15%
PM growth 3YN/A
PM growth 5Y-23.83%
GM growth 3Y7.77%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JWN is destroying value.
The number of shares outstanding for JWN has been increased compared to 1 year ago.
Compared to 5 years ago, JWN has more shares outstanding
The debt/assets ratio for JWN is higher compared to a year ago.
2.2 Solvency
JWN has an Altman-Z score of 1.84. This is not the best score and indicates that JWN is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, JWN is in line with its industry, outperforming 43.75% of the companies in the same industry.
The Debt to FCF ratio of JWN is 19.23, which is on the high side as it means it would take JWN, 19.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JWN (19.23) is worse than 68.75% of its industry peers.
A Debt/Equity ratio of 2.76 is on the high side and indicates that JWN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.76, JWN is doing worse than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | 19.23 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.94
WACC8.28%
2.3 Liquidity
JWN has a Current Ratio of 1.07. This is a normal value and indicates that JWN is financially healthy and should not expect problems in meeting its short term obligations.
JWN has a Current ratio of 1.07. This is amonst the worse of the industry: JWN underperforms 84.38% of its industry peers.
A Quick Ratio of 0.41 indicates that JWN may have some problems paying its short term obligations.
JWN has a Quick ratio of 0.41. This is amonst the worse of the industry: JWN underperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
JWN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
JWN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.10% yearly.
Looking at the last year, JWN shows a small growth in Revenue. The Revenue has grown by 1.02% in the last year.
Measured over the past years, JWN shows a decrease in Revenue. The Revenue has been decreasing by -1.52% on average per year.
EPS 1Y (TTM)4.32%
EPS 3YN/A
EPS 5Y-10.1%
EPS Q2Q%14.29%
Revenue 1Y (TTM)1.02%
Revenue growth 3Y11.1%
Revenue growth 5Y-1.52%
Sales Q2Q%3.23%
3.2 Future
Based on estimates for the next years, JWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.42% on average per year.
Based on estimates for the next years, JWN will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y-10.31%
EPS Next 2Y-2.73%
EPS Next 3Y-0.46%
EPS Next 5Y15.42%
Revenue Next Year1.23%
Revenue Next 2Y1.66%
Revenue Next 3Y1.61%
Revenue Next 5Y1.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.95, which indicates a very decent valuation of JWN.
62.50% of the companies in the same industry are more expensive than JWN, based on the Price/Earnings ratio.
JWN is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.50 indicates a reasonable valuation of JWN.
JWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JWN is cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, JWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
JWN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JWN is cheaper than 84.38% of the companies in the same industry.
JWN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.86 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.73%
EPS Next 3Y-0.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, JWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.82, JWN pays a better dividend. On top of this JWN pays more dividend than 90.63% of the companies listed in the same industry.
JWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of JWN decreases each year by -13.11%.
JWN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of JWN decreased recently.
Dividend Growth(5Y)-13.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
43.66% of the earnings are spent on dividend by JWN. This is a bit on the high side, but may be sustainable.
DP43.66%
EPS Next 2Y-2.73%
EPS Next 3Y-0.46%
NORDSTROM INC
NYSE:JWN (11/22/2024, 10:23:08 AM)
23.07
+0.7 (+3.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 11.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 29.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.45% | ||
| PM (TTM) | 1.9% | ||
| GM | 36.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.32%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-10.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.02%
Revenue growth 3Y11.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y