NORDSTROM INC (JWN) Stock Fundamental Analysis
NYSE:JWN - New York Stock Exchange, Inc. - US6556641008 - Common Stock - Currency: USD
Overall JWN gets a fundamental rating of 3 out of 10. We evaluated JWN against 32 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.
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
With a Return On Assets value of 2.82%, JWN perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
The Return On Equity of JWN (26.65%) is better than 83.87% of its industry peers.
JWN has a better Return On Invested Capital (7.39%) than 61.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JWN is below the industry average of 11.62%.
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 has a Profit Margin (1.74%) which is comparable to the rest of the industry.
JWN's Profit Margin has declined in the last couple of years.
JWN has a Operating Margin (3.45%) which is comparable to the rest of the industry.
JWN's Operating Margin has declined in the last couple of years.
JWN has a worse Gross Margin (36.64%) 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 | 3.45% | ||
| 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.
Compared to 5 years ago, JWN has more shares outstanding
Compared to 1 year ago, JWN has a worse debt to assets ratio.
2.2 Solvency
JWN has an Altman-Z score of 1.78. This is a bad value and indicates that JWN is not financially healthy and even has some risk of bankruptcy.
JWN has a Altman-Z score (1.78) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 7.07, JWN perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
JWN has a Debt/Equity ratio of 2.65. This is a high value indicating a heavy dependency on external financing.
JWN's Debt to Equity ratio of 2.65 is on the low side compared to the rest of the industry. JWN is outperformed by 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.65 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.73
WACC10.07%
2.3 Liquidity
A Current Ratio of 1.14 indicates that JWN should not have too much problems paying its short term obligations.
JWN has a worse Current ratio (1.14) 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 has a Quick ratio of 0.35. This is amonst the worse of the industry: JWN underperforms 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.
Measured over the past years, JWN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.10% on average per year.
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%4.34%
3.2 Future
The Earnings Per Share is expected to grow by 14.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y-5.12%
EPS Next 2Y-0.32%
EPS Next 3Y3.34%
EPS Next 5Y14.77%
Revenue Next Year2.43%
Revenue Next 2Y2.26%
Revenue Next 3Y2%
Revenue Next 5Y2.2%
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
With a Price/Earnings ratio of 12.08, JWN is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 29.98, JWN is valued rather cheaply.
A Price/Forward Earnings ratio of 11.53 indicates a reasonable valuation of JWN.
80.65% of the companies in the same industry are more expensive than JWN, based on the Price/Forward Earnings ratio.
JWN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 11.53 |
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.
JWN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JWN is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.32%
EPS Next 3Y3.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, JWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.75, JWN pays a better dividend. On top of this JWN pays more dividend than 90.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, JWN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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.
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-0.32%
EPS Next 3Y3.34%
24.29
-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 Change1.64%
Ins Owners25.6%
Ins Owner Change-0.08%
Market Cap4.01B
Analysts51.82
Price Target23.79 (-2.06%)
Short Float %8.76%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend0.76
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)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)2.52%
Revenue beat(4)3
Avg Revenue beat(4)1.25%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)3.48%
Revenue beat(8)5
Avg Revenue beat(8)0.42%
Revenue beat(12)9
Avg Revenue beat(12)1.37%
Revenue beat(16)13
Avg Revenue beat(16)1.78%
PT rev (1m)-0.39%
PT rev (3m)10.13%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.31%
EPS NY rev (3m)5.31%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 11.53 | ||
| P/S | 0.27 | ||
| P/FCF | 10.84 | ||
| P/OCF | 4.53 | ||
| P/B | 4.06 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)2.01
EY8.28%
EPS(NY)2.11
Fwd EY8.67%
FCF(TTM)2.24
FCFY9.23%
OCF(TTM)5.36
OCFY22.07%
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
WACC10.07%
ROIC/WACC0.73
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-5.12%
EPS Next 2Y-0.32%
EPS Next 3Y3.34%
EPS Next 5Y14.77%
Revenue 1Y (TTM)3.57%
Revenue growth 3Y11.1%
Revenue growth 5Y-1.52%
Sales Q2Q%4.34%
Revenue Next Year2.43%
Revenue Next 2Y2.26%
Revenue Next 3Y2%
Revenue Next 5Y2.2%
EBIT growth 1Y3.16%
EBIT growth 3YN/A
EBIT growth 5Y-8.56%
EBIT Next Year113.2%
EBIT Next 3Y28.23%
EBIT Next 5Y23.19%
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%