NORDSTROM INC (JWN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JWN - US6556641008 - Common Stock
24.66 USD
+0.02 (+0.08%)
24.6601 USD
0 (0%)
JWN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. JWN has a medium profitability rating, but doesn't score so well on its financial health evaluation. JWN has a correct valuation and a medium 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
- Looking at the Return On Assets, with a value of 3.29%, JWN is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- 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.
- The Return On Invested Capital of JWN (7.75%) is better than 64.52% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for JWN is in line with the industry average of 9.29%.
- The 3 year average ROIC (7.32%) for JWN is below the current ROIC(7.75%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (1.96%) than 61.29% of its industry peers.
- In the last couple of years the Profit Margin of JWN has declined.
- JWN has a Operating Margin of 3.66%. This is comparable to the rest of the industry: JWN outperforms 51.61% of its industry peers.
- JWN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 37.43%, 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 | 3.66% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JWN is destroying value.
- JWN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for JWN has been increased compared to 5 years ago.
- JWN has a better debt/assets ratio than last year.
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.
- JWN has a Altman-Z score of 1.90. This is comparable to the rest of the industry: JWN outperforms 51.61% of its industry peers.
- 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 comparable to the rest of the industry.
- A Debt/Equity ratio of 2.30 is on the high side and indicates that JWN has dependencies on debt financing.
- JWN's Debt to Equity ratio of 2.30 is on the low side compared to the rest of the industry. JWN is outperformed by 80.65% of its industry peers.
| 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.
- JWN has a Quick Ratio of 1.19. 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 has a Quick ratio of 0.51. This is amonst the worse of the industry: JWN underperforms 87.10% of its industry peers.
| 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.
- Measured over the past years, JWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.54% on average per year.
- The Revenue has been growing slightly by 2.21% in the past year.
- Measured over the past years, JWN shows a decrease in Revenue. The Revenue has been decreasing by -0.66% on average per year.
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.
- The Revenue is expected to grow by 2.12% on average over the next years.
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.
- 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
- JWN is valuated reasonably with a Price/Earnings ratio of 11.47.
- Based on the Price/Earnings ratio, JWN is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, JWN is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.91, the valuation of JWN can be described as reasonable.
- JWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JWN is cheaper than 74.19% of the companies in the same industry.
- JWN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, JWN is valued cheaper than 83.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, JWN is valued cheaper than 90.32% of the companies in the same industry.
| 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
- JWN has a Yearly Dividend Yield of 2.37%. 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 2.19. JWN pays more dividend than 83.87% of the companies in the same industry.
- JWN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
- The dividend of JWN decreases each year by -12.34%.
- JWN has paid a dividend for at least 10 years, which is a reliable track record.
- JWN has decreased its dividend 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%
NORDSTROM INC / JWN FAQ
What is the ChartMill fundamental rating of NORDSTROM INC (JWN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to JWN.
What is the valuation status of NORDSTROM INC (JWN) stock?
ChartMill assigns a valuation rating of 6 / 10 to NORDSTROM INC (JWN). This can be considered as Fairly Valued.
Can you provide the profitability details for NORDSTROM INC?
NORDSTROM INC (JWN) has a profitability rating of 5 / 10.
What is the valuation of NORDSTROM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORDSTROM INC (JWN) is 11.47 and the Price/Book (PB) ratio is 3.62.
How financially healthy is NORDSTROM INC?
The financial health rating of NORDSTROM INC (JWN) is 3 / 10.