NORDSTROM INC (JWN) Stock Fundamental Analysis
NYSE:JWN - New York Stock Exchange, Inc. - US6556641008 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to JWN. JWN was compared to 28 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 is not valued too expensively and it also shows a decent 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.
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 3.29%. This is in the better half of the industry: JWN outperforms 61.29% of its industry peers.
With an excellent Return On Equity value of 25.88%, JWN belongs to the best 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 below the industry average of 11.59%.
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
Looking at the Profit Margin, with a value of 1.96%, JWN is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
JWN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.66%, 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.
JWN has a Gross Margin of 37.43%. This is in the lower half of the industry: JWN underperforms 64.52% of its industry peers.
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 | 3.66% | ||
| 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.
Compared to 1 year ago, JWN has more shares outstanding
Compared to 5 years ago, JWN has more shares outstanding
The debt/assets ratio for JWN has been reduced compared to a year ago.
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'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
A Current Ratio of 1.19 indicates that JWN should not have too much problems paying its short term obligations.
JWN has a worse Current ratio (1.19) 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 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
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 2.21% in the last 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.
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 11.47, the valuation of JWN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of JWN indicates a somewhat cheap valuation: JWN is cheaper than 77.42% of the companies listed in the same industry.
JWN is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of JWN can be described as reasonable.
Based on the Price/Forward Earnings ratio, JWN is valued a bit cheaper than 74.19% of the companies in the same industry.
JWN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| 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 cheaply inside the industry as 83.87% of the companies are valued more expensively.
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
With a Yearly Dividend Yield of 2.37%, JWN has a reasonable but not impressive dividend return.
JWN's Dividend Yield is rather good when compared to the industry average which is at 11.83. JWN pays more dividend than 83.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, JWN has a dividend comparable with the average S&P500 company.
| 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.
The dividend of JWN decreased in the last 3 years.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
JWN pays out 42.03% of its income as dividend. 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 Change1.9%
Ins Owners25.6%
Ins Owner Change-109.48%
Market Cap4.12B
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-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)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
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
ROICexcg growth 3Y2.96%
ROICexcg 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%