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%)
Overall JWN gets a fundamental rating of 4 out of 10. We evaluated JWN 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 decent growth rate and is not valued too expensively.
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
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.
JWN has a Return On Equity of 25.88%. This is amongst the best in the industry. JWN outperforms 87.10% of its industry peers.
JWN has a better Return On Invested Capital (7.75%) 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 Profit Margin of 1.96%. This is in the better half 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 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.
JWN has a worse Gross Margin (37.43%) than 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.
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 (1.90) which is comparable to the rest of the industry.
The Debt to FCF ratio of JWN is 3.49, which is a good value as it means it would take JWN, 3.49 years of fcf income to pay off all of its debts.
JWN's Debt to FCF ratio of 3.49 is in line compared to the rest of the industry. JWN outperforms 58.06% of its industry peers.
JWN has a Debt/Equity ratio of 2.30. This is a high value indicating a heavy dependency on external financing.
JWN has a Debt to Equity ratio of 2.30. This is amonst the worse of the industry: JWN underperforms 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
JWN has a Current Ratio of 1.19. 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 (1.19) is worse than 74.19% of its industry peers.
A Quick Ratio of 0.51 indicates that JWN may have some problems paying its short term obligations.
JWN has a worse Quick ratio (0.51) than 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
JWN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.42%.
JWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.54% yearly.
JWN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.21%.
The Revenue has been decreasing by -0.66% on average over the past years.
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
The Earnings Per Share is expected to grow by 15.79% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.47, which indicates a very decent valuation of JWN.
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 26.51, 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.
JWN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JWN indicates a rather cheap valuation: JWN is cheaper than 83.87% of the companies listed in the same industry.
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
JWN has a Yearly Dividend Yield of 2.37%.
JWN's Dividend Yield is rather good when compared to the industry average which is at 2.32. JWN pays more dividend than 83.87% of the companies in the same industry.
JWN's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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.
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%
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-8.24%
Ins Owners25.6%
Ins Owner Change0%
Market Cap4.12B
Revenue(TTM)15.02B
Net Income(TTM)295.00M
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-DateN/A
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
Graham NumberN/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
ROICexgc growth 3Y2.96%
ROICexgc 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%
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.