NORDSTROM INC (JWN) Stock Fundamental Analysis
USA - NYSE:JWN - US6556641008 - Common Stock
24.66 USD
+0.02 (+0.08%)
24.6601 USD
0 (0%)
Taking everything into account, JWN scores 4 out of 10 in our fundamental rating. JWN was compared to 28 industry peers in the Broadline Retail industry. There are concerns on the financial health of JWN while its profitability can be described as average. JWN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
JWN had positive earnings in the past year.
JWN had a positive operating cash flow in the past year.
JWN had positive earnings in 4 of the past 5 years.
Of the past 5 years JWN 4 years had a positive operating cash flow.
1.2 Ratios
JWN has a better Return On Assets (3.29%) than 61.29% of its industry peers.
Looking at the Return On Equity, with a value of 25.88%, JWN belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.75%, JWN is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
JWN had an Average Return On Invested Capital over the past 3 years of 7.32%. This is below the industry average of 11.00%.
The last Return On Invested Capital (7.75%) for JWN is above the 3 year average (7.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 25.88% | ||
| ROIC | 7.75% |
ROA(3y)2.56%
ROA(5y)0.49%
ROE(3y)24.91%
ROE(5y)-24.17%
ROIC(3y)7.32%
ROIC(5y)N/A
1.3 Margins
JWN's Profit Margin of 1.96% is fine compared to the rest of the industry. JWN outperforms 61.29% of its industry peers.
In the last couple of years the Profit Margin of JWN has declined.
JWN's Operating Margin of 3.66% is in line compared to the rest of the industry. JWN outperforms 51.61% of its industry peers.
In the last couple of years the Operating Margin of JWN has declined.
JWN has a Gross Margin of 37.43%. This is in the lower half of the industry: JWN underperforms 64.52% of its industry peers.
JWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.66% | ||
| PM (TTM) | 1.96% | ||
| GM | 37.43% |
OM growth 3Y-0.3%
OM growth 5Y-8.18%
PM growth 3Y17.61%
PM growth 5Y-9.33%
GM growth 3Y0.55%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
JWN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, JWN has more shares outstanding
JWN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, JWN has an improved debt to assets ratio.
2.2 Solvency
JWN has an Altman-Z score of 1.90. 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.
With a Altman-Z score value of 1.90, JWN perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
JWN has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as JWN would need 3.49 years to pay back of all of its debts.
JWN has a Debt to FCF ratio (3.49) which is in line with its industry peers.
A Debt/Equity ratio of 2.30 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 2.30, JWN is doing worse than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.78
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.19 indicates that JWN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, JWN is doing worse than 74.19% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that JWN may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, JWN is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.42% over the past year.
JWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.54% yearly.
The Revenue has been growing slightly by 2.21% in the past year.
JWN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.66% yearly.
EPS 1Y (TTM)1.42%
EPS 3Y26.58%
EPS 5Y-8.54%
EPS Q2Q%14.58%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.66%
Sales Q2Q%-2.19%
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 15.79% on average per year.
Based on estimates for the next years, JWN will show a small growth in Revenue. The Revenue will grow by 2.12% on average per year.
EPS Next Y-3.7%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
EPS Next 5Y15.79%
Revenue Next Year2.01%
Revenue Next 2Y1.73%
Revenue Next 3Y1.3%
Revenue Next 5Y2.12%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.47 indicates a reasonable valuation of JWN.
Compared to the rest of the industry, the Price/Earnings ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 77.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, JWN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of JWN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 74.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. JWN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
83.87% of the companies in the same industry are more expensive than JWN, based on the Enterprise Value to EBITDA ratio.
90.32% of the companies in the same industry are more expensive than JWN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | 4.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, JWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.00, JWN pays a better dividend. On top of this JWN pays more dividend than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, JWN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of JWN decreases each year by -12.34%.
JWN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of JWN decreased in the last 3 years.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
42.03% of the earnings are spent on dividend by JWN. This is a bit on the high side, but may be sustainable.
DP42.03%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
24.66
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners52.71%
Inst Owner Change-80.84%
Ins Owners25.6%
Ins Owner Change-110.91%
Market Cap4.12B
Analysts50.48
Price Target24.23 (-1.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend0.76
Dividend Growth(5Y)-12.34%
DP42.03%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.31%
Min EPS beat(2)18.42%
Max EPS beat(2)54.21%
EPS beat(4)3
Avg EPS beat(4)-27.67%
Min EPS beat(4)-216.28%
Max EPS beat(4)54.21%
EPS beat(8)7
Avg EPS beat(8)29.54%
EPS beat(12)11
Avg EPS beat(12)31.34%
EPS beat(16)13
Avg EPS beat(16)22.71%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)2.52%
Revenue beat(4)2
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)3.48%
Revenue beat(8)5
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)1.15%
Revenue beat(16)12
Avg Revenue beat(16)1.72%
PT rev (1m)0%
PT rev (3m)1.84%
EPS NQ rev (1m)-72.24%
EPS NQ rev (3m)-71.92%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.27 | ||
| P/FCF | 5.49 | ||
| P/OCF | 3.25 | ||
| P/B | 3.62 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 4.95 |
EPS(TTM)2.15
EY8.72%
EPS(NY)2.07
Fwd EY8.4%
FCF(TTM)4.49
FCFY18.21%
OCF(TTM)7.58
OCFY30.72%
SpS89.8
BVpS6.82
TBVpS5.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 25.88% | ||
| ROCE | 9.34% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.92% | ||
| OM | 3.66% | ||
| PM (TTM) | 1.96% | ||
| GM | 37.43% | ||
| FCFM | 5% |
ROA(3y)2.56%
ROA(5y)0.49%
ROE(3y)24.91%
ROE(5y)-24.17%
ROIC(3y)7.32%
ROIC(5y)N/A
ROICexc(3y)8.48%
ROICexc(5y)N/A
ROICexgc(3y)8.94%
ROICexgc(5y)N/A
ROCE(3y)8.82%
ROCE(5y)N/A
ROICexcg growth 3Y2.96%
ROICexcg growth 5Y-6.81%
ROICexc growth 3Y2.82%
ROICexc growth 5Y-6.9%
OM growth 3Y-0.3%
OM growth 5Y-8.18%
PM growth 3Y17.61%
PM growth 5Y-9.33%
GM growth 3Y0.55%
GM growth 5Y0.77%
F-Score7
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 85.57% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 109.98% | ||
| Profit Quality | 254.58% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.9 |
F-Score7
WACC9.92%
ROIC/WACC0.78
Cap/Depr(3y)86.99%
Cap/Depr(5y)80.06%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.47%
Profit Quality(3y)162.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.42%
EPS 3Y26.58%
EPS 5Y-8.54%
EPS Q2Q%14.58%
EPS Next Y-3.7%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
EPS Next 5Y15.79%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.66%
Sales Q2Q%-2.19%
Revenue Next Year2.01%
Revenue Next 2Y1.73%
Revenue Next 3Y1.3%
Revenue Next 5Y2.12%
EBIT growth 1Y2.62%
EBIT growth 3Y0.2%
EBIT growth 5Y-8.79%
EBIT Next Year115.06%
EBIT Next 3Y36.23%
EBIT Next 5Y23.63%
FCF growth 1Y1344.23%
FCF growth 3Y55.69%
FCF growth 5Y20.06%
OCF growth 1Y104.03%
OCF growth 3Y21.58%
OCF growth 5Y0.5%