NORDSTROM INC (JWN)
US6556641008 - Common Stock
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year JWN was profitable.
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 Return On Assets of 2.82%. This is comparable to the rest of the industry: JWN outperforms 50.00% of its industry peers.
JWN has a better Return On Equity (26.65%) than 81.25% of its industry peers.
The Return On Invested Capital of JWN (7.39%) is better than 62.50% 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 11.71%.
The last Return On Invested Capital (7.39%) for JWN is above the 3 year average (7.35%), which is a sign of increasing profitability.
| 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
JWN's Profit Margin of 1.74% is in line compared to the rest of the industry. JWN outperforms 53.13% of its industry peers.
In the last couple of years the Profit Margin of JWN has declined.
Looking at the Operating Margin, with a value of 3.45%, JWN is in line with its industry, outperforming 46.88% of the companies in the same industry.
In the last couple of years the Operating Margin of JWN has declined.
Looking at the Gross Margin, with a value of 36.64%, JWN is doing worse than 62.50% 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
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.
JWN has more shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 1.78, 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 7.07, which is on the high side as it means it would take JWN, 7.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JWN (7.07) 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.
With a Debt to Equity ratio value of 2.65, JWN is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.9
WACC8.2%
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.
JWN has a worse Current ratio (1.14) than 75.00% of its industry peers.
JWN has a Quick Ratio of 1.14. This is a bad value and indicates that JWN is not financially healthy enough and could expect problems in meeting 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 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
JWN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.79%.
JWN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.10% yearly.
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
Based on estimates for the next years, JWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.55% on average per year.
JWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.00% yearly.
EPS Next Y-6.45%
EPS Next 2Y-1.81%
EPS Next 3Y-0.19%
EPS Next 5Y14.55%
Revenue Next Year2.05%
Revenue Next 2Y1.94%
Revenue Next 3Y1.74%
Revenue Next 5Y2%
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
Based on the Price/Earnings ratio of 12.04, 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 65.63% of the companies are valued more expensively.
JWN is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
JWN is valuated reasonably with a Price/Forward Earnings ratio of 11.85.
JWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JWN is cheaper than 71.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. JWN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JWN is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 78.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 5.42 |
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 3.16%. 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 5.34. JWN pays more dividend than 90.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, JWN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of JWN decreases each year by -13.11%.
JWN has paid a dividend for at least 10 years, which is 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
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 (12/24/2024, 8:23:51 PM)
After market: 24.18 -0.03 (-0.12%)24.21
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners54.46%
Inst Owner Change-5.98%
Ins Owners25.23%
Ins Owner Change-0.08%
Market Cap3.99B
Analysts53.85
Price Target22.82 (-5.74%)
Short Float %10.92%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Dividend Growth(5Y)-13.11%
DP47.15%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)5.63%
PT rev (3m)14.81%
EPS NQ rev (1m)-8.62%
EPS NQ rev (3m)-8.62%
EPS NY rev (1m)4.3%
EPS NY rev (3m)4.67%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.26 | ||
| P/FCF | 10.79 | ||
| P/OCF | 4.51 | ||
| P/B | 4.05 | ||
| P/tB | 5.41 | ||
| EV/EBITDA | 5.42 |
EPS(TTM)2.01
EY8.3%
EPS(NY)2.04
Fwd EY8.44%
FCF(TTM)2.24
FCFY9.27%
OCF(TTM)5.37
OCFY22.17%
SpS91.64
BVpS5.99
TBVpS4.48
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
WACC8.2%
ROIC/WACC0.9
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 Year2.05%
Revenue Next 2Y1.94%
Revenue Next 3Y1.74%
Revenue Next 5Y2%
EBIT growth 1Y3.16%
EBIT growth 3YN/A
EBIT growth 5Y-8.56%
EBIT Next Year107.79%
EBIT Next 3Y31.34%
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%