NORDSTROM INC (JWN) Stock Fundamental Analysis
NYSE:JWN - New York Stock Exchange, Inc. - US6556641008 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to JWN. JWN was compared to 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
In the past year JWN was profitable.
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
JWN has a Return On Assets (2.82%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 26.65%, JWN belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
The Return On Invested Capital of JWN (7.39%) is better than 64.52% of its industry peers.
JWN had an Average Return On Invested Capital over the past 3 years of 7.35%. This is below the industry average of 11.22%.
The 3 year average ROIC (7.35%) for JWN is below the current ROIC(7.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 26.65% | ||
| ROIC | 7.39% |
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
With a Profit Margin value of 1.74%, JWN perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
JWN's Profit Margin has declined in the last couple of years.
JWN has a Operating Margin (3.45%) which is in line with its industry peers.
JWN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.64%, JWN is doing worse than 64.52% of the companies in the same industry.
JWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.45% | ||
| PM (TTM) | 1.74% | ||
| GM | 36.64% |
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
JWN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
JWN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that JWN is in the distress zone and has some risk of bankruptcy.
JWN has a Altman-Z score (1.78) which is comparable to the rest of the industry.
JWN has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as JWN would need 7.07 years to pay back of all of its debts.
JWN has a Debt to FCF ratio (7.07) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.65 is on the high side and indicates that JWN has dependencies on debt financing.
JWN has a worse Debt to Equity ratio (2.65) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.86
WACC8.55%
2.3 Liquidity
JWN has a Current Ratio of 1.14. This is a normal value and indicates that JWN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of JWN (1.14) is worse than 74.19% of its industry peers.
A Quick Ratio of 0.35 indicates that JWN may have some problems paying its short term obligations.
JWN's Quick ratio of 0.35 is on the low side compared to the rest of the industry. JWN is outperformed by 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.79% over the past year.
The earnings per share for JWN have been decreasing by -10.10% on average. This is quite bad
The Revenue has been growing slightly by 3.57% in the past 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)5.79%
EPS 3YN/A
EPS 5Y-10.1%
EPS Q2Q%32%
Revenue 1Y (TTM)3.57%
Revenue growth 3Y11.1%
Revenue growth 5Y-1.52%
Sales Q2Q%0.81%
3.2 Future
JWN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.55% yearly.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-6.45%
EPS Next 2Y-1.81%
EPS Next 3Y-0.19%
EPS Next 5Y14.55%
Revenue Next Year2.43%
Revenue Next 2Y2.26%
Revenue Next 3Y2%
Revenue Next 5Y2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.06, the valuation of JWN can be described as correct.
Based on the Price/Earnings ratio, JWN is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
JWN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.51.
JWN is valuated reasonably with a Price/Forward Earnings ratio of 11.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 70.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 93.88. JWN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
87.10% of the companies in the same industry are more expensive than JWN, based on the Enterprise Value to EBITDA ratio.
JWN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JWN is cheaper than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 5.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.81%
EPS Next 3Y-0.19%
5. Dividend
5.1 Amount
JWN has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
JWN's Dividend Yield is rather good when compared to the industry average which is at 5.39. JWN pays more dividend than 90.32% of the companies in the same industry.
JWN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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.
JWN has decreased its dividend recently.
Dividend Growth(5Y)-13.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
47.15% of the earnings are spent on dividend by JWN. This is a bit on the high side, but may be sustainable.
DP47.15%
EPS Next 2Y-1.81%
EPS Next 3Y-0.19%
NORDSTROM INC
NYSE:JWN (1/31/2025, 11:28:34 AM)
24.24
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners54.46%
Inst Owner Change2.33%
Ins Owners25.23%
Ins Owner Change-0.08%
Market Cap4.00B
Analysts54.17
Price Target22.82 (-5.86%)
Short Float %8.81%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.76
Dividend Growth(5Y)-13.11%
DP47.15%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.6%
Min EPS beat(2)32.99%
Max EPS beat(2)54.21%
EPS beat(4)3
Avg EPS beat(4)-30.15%
Min EPS beat(4)-216.28%
Max EPS beat(4)54.21%
EPS beat(8)7
Avg EPS beat(8)28.58%
EPS beat(12)11
Avg EPS beat(12)31.46%
EPS beat(16)13
Avg EPS beat(16)24.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.95%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)3.48%
Revenue beat(8)4
Avg Revenue beat(8)-0.01%
Revenue beat(12)8
Avg Revenue beat(12)1.08%
Revenue beat(16)12
Avg Revenue beat(16)1.56%
PT rev (1m)0%
PT rev (3m)6.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.62%
EPS NY rev (1m)0%
EPS NY rev (3m)4.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.86 | ||
| P/S | 0.26 | ||
| P/FCF | 10.81 | ||
| P/OCF | 4.52 | ||
| P/B | 4.05 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 5.43 |
EPS(TTM)2.01
EY8.29%
EPS(NY)2.04
Fwd EY8.43%
FCF(TTM)2.24
FCFY9.25%
OCF(TTM)5.36
OCFY22.12%
SpS91.57
BVpS5.98
TBVpS4.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 26.65% | ||
| ROCE | 9.02% | ||
| ROIC | 7.39% | ||
| ROICexc | 7.93% | ||
| ROICexgc | 8.32% | ||
| OM | 3.45% | ||
| PM (TTM) | 1.74% | ||
| GM | 36.64% | ||
| FCFM | 2.45% |
ROA(3y)2.13%
ROA(5y)0.85%
ROE(3y)26.53%
ROE(5y)-19.19%
ROIC(3y)7.35%
ROIC(5y)N/A
ROICexc(3y)8.15%
ROICexc(5y)N/A
ROICexgc(3y)8.58%
ROICexgc(5y)N/A
ROCE(3y)8.97%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-14.05%
ROICexc growth 3YN/A
ROICexc growth 5Y-13.72%
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%
F-Score8
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 82.53% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 77.23% | ||
| Profit Quality | 140.68% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.78 |
F-Score8
WACC8.55%
ROIC/WACC0.86
Cap/Depr(3y)85.9%
Cap/Depr(5y)90.81%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.99%
Profit Quality(3y)114.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.79%
EPS 3YN/A
EPS 5Y-10.1%
EPS Q2Q%32%
EPS Next Y-6.45%
EPS Next 2Y-1.81%
EPS Next 3Y-0.19%
EPS Next 5Y14.55%
Revenue 1Y (TTM)3.57%
Revenue growth 3Y11.1%
Revenue growth 5Y-1.52%
Sales Q2Q%0.81%
Revenue Next Year2.43%
Revenue Next 2Y2.26%
Revenue Next 3Y2%
Revenue Next 5Y2%
EBIT growth 1Y3.16%
EBIT growth 3YN/A
EBIT growth 5Y-8.56%
EBIT Next Year112.11%
EBIT Next 3Y27.72%
EBIT Next 5Y22.92%
FCF growth 1Y86.87%
FCF growth 3YN/A
FCF growth 5Y-39.51%
OCF growth 1Y32.49%
OCF growth 3YN/A
OCF growth 5Y-13.68%