NORDSTROM INC (JWN) Stock Fundamental Analysis
NYSE:JWN - New York Stock Exchange, Inc. - US6556641008 - Common Stock - Currency: USD
Taking everything into account, JWN scores 4 out of 10 in our fundamental rating. JWN was compared to 31 industry peers in the Broadline Retail industry. There are concerns on the financial health of JWN while its profitability can be described as average. 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.
Of the past 5 years JWN 4 years were profitable.
Of the past 5 years JWN 4 years had a positive operating cash flow.
1.2 Ratios
JWN has a Return On Assets of 3.28%. This is in the better half of the industry: JWN outperforms 61.29% of its industry peers.
JWN's Return On Equity of 25.79% is amongst the best of the industry. JWN outperforms 83.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.99%, JWN is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JWN is below the industry average of 11.67%.
The last Return On Invested Capital (7.99%) for JWN is above the 3 year average (7.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 25.79% | ||
| ROIC | 7.99% |
ROA(3y)2.56%
ROA(5y)0.49%
ROE(3y)24.91%
ROE(5y)-24.17%
ROIC(3y)7.4%
ROIC(5y)N/A
1.3 Margins
JWN's Profit Margin of 1.96% is fine compared to the rest of the industry. JWN outperforms 61.29% 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 3.77%, JWN is in line with its industry, outperforming 51.61% of the companies in the same industry.
JWN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 37.43%, JWN is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of JWN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 1.96% | ||
| GM | 37.43% |
OM growth 3Y0.89%
OM growth 5Y-7.52%
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.
Compared to 1 year ago, JWN has more shares outstanding
JWN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for JWN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.90 indicates that JWN is not a great score, but indicates only limited risk for bankruptcy at the moment.
JWN has a Altman-Z score (1.90) which is in line with its industry peers.
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 fine compared to the rest of the industry. JWN outperforms 67.74% of its industry peers.
A Debt/Equity ratio of 2.30 is on the high side and indicates that JWN has dependencies on debt financing.
JWN has a Debt to Equity ratio of 2.30. This is in the lower half of the industry: JWN underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.87
WACC9.22%
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.
JWN has a Current ratio of 1.19. This is in the lower half of the industry: JWN underperforms 74.19% of its industry peers.
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 worse Quick ratio (0.51) than 83.87% 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.
Looking at the last year, JWN shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
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)2.2%
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-3.14%
EPS Next 2Y-3.44%
EPS Next 3Y5.97%
EPS Next 5Y15.79%
Revenue Next Year2.18%
Revenue Next 2Y1.92%
Revenue Next 3Y1.45%
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
A Price/Earnings ratio of 11.07 indicates a reasonable valuation of JWN.
Compared to the rest of the industry, the Price/Earnings ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 74.19% of the companies listed in the same industry.
JWN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
JWN is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
74.19% 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 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
JWN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JWN is cheaper than 87.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JWN indicates a rather cheap valuation: JWN is cheaper than 90.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.29 | ||
| EV/EBITDA | 4.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.44%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, JWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.43, JWN pays a better dividend. On top of this JWN pays more dividend than 87.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, JWN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
The dividend of JWN decreased recently.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
JWN pays out 42.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.18%
EPS Next 2Y-3.44%
EPS Next 3Y5.97%
23.81
-0.05 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners52.71%
Inst Owner Change-0.11%
Ins Owners25.6%
Ins Owner Change0.75%
Market Cap3.97B
Analysts52.38
Price Target23.79 (-0.08%)
Short Float %9.47%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend0.76
Dividend Growth(5Y)-12.34%
DP42.18%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)4.26%
EPS NQ rev (1m)-12.25%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.26 | ||
| P/FCF | 5.29 | ||
| P/OCF | 3.14 | ||
| P/B | 3.49 | ||
| P/tB | 4.46 | ||
| EV/EBITDA | 4.75 |
EPS(TTM)2.15
EY9.03%
EPS(NY)2.08
Fwd EY8.75%
FCF(TTM)4.5
FCFY18.9%
OCF(TTM)7.59
OCFY31.88%
SpS89.97
BVpS6.83
TBVpS5.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 25.79% | ||
| ROCE | 9.63% | ||
| ROIC | 7.99% | ||
| ROICexc | 9.7% | ||
| ROICexgc | 10.22% | ||
| OM | 3.77% | ||
| 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)7.4%
ROIC(5y)N/A
ROICexc(3y)8.59%
ROICexc(5y)N/A
ROICexgc(3y)9.05%
ROICexgc(5y)N/A
ROCE(3y)8.92%
ROCE(5y)N/A
ROICexcg growth 3Y4.19%
ROICexcg growth 5Y-6.14%
ROICexc growth 3Y4.05%
ROICexc growth 5Y-6.24%
OM growth 3Y0.89%
OM growth 5Y-7.52%
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 | 2.24 | ||
| Cap/Depr | 85.57% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.38% | ||
| Profit Quality | 255.44% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.9 |
F-Score7
WACC9.22%
ROIC/WACC0.87
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-3.14%
EPS Next 2Y-3.44%
EPS Next 3Y5.97%
EPS Next 5Y15.79%
Revenue 1Y (TTM)2.2%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.66%
Sales Q2Q%-2.19%
Revenue Next Year2.18%
Revenue Next 2Y1.92%
Revenue Next 3Y1.45%
Revenue Next 5Y2.12%
EBIT growth 1Y5.79%
EBIT growth 3Y1.4%
EBIT growth 5Y-8.13%
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%