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%)
Taking everything into account, JWN scores 4 out of 10 in our fundamental rating. JWN was compared to 30 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 is not valued too expensively and it also shows a decent 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
JWN's Return On Assets of 3.29% is fine compared to the rest of the industry. JWN outperforms 61.29% of its industry peers.
JWN has a better Return On Equity (25.88%) than 87.10% of its industry peers.
With a decent Return On Invested Capital value of 7.75%, JWN is doing good in the industry, outperforming 64.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JWN is below the industry average of 9.37%.
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.
In the last couple of years the Profit Margin of JWN has declined.
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.
In the last couple of years the Operating Margin of JWN has declined.
JWN has a worse Gross Margin (37.43%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JWN is destroying value.
The number of shares outstanding for JWN has been increased compared to 1 year ago.
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 of 1.90. This is comparable to the rest of the industry: JWN outperforms 51.61% of 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.
Looking at the Debt to FCF ratio, with a value of 3.49, JWN is in line with its industry, outperforming 58.06% of the companies in the same 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.
With a Current ratio value of 1.19, JWN is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that JWN may have some problems paying its short term obligations.
The Quick ratio of JWN (0.51) is worse 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%.
The Earnings Per Share has been decreasing by -8.54% on average over the past years.
JWN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.21%.
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.
Based on estimates for the next years, JWN will show a small growth in Revenue. The Revenue will grow by 2.12% on average per year.
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
With a Price/Earnings ratio of 11.47, the valuation of JWN can be described as very reasonable.
77.42% of the companies in the same industry are more expensive than JWN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of JWN to the average of the S&P500 Index (26.28), we can say JWN is valued rather cheaply.
JWN is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
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 23.52, 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
83.87% of the companies in the same industry are more expensive than JWN, based on the Enterprise Value to EBITDA ratio.
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 | 5.49 | ||
| 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 8.32. 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 2.31.
| 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 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-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
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.
Can you provide the valuation status for NORDSTROM INC?
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.
How financially healthy is NORDSTROM INC?
The financial health rating of NORDSTROM INC (JWN) is 3 / 10.
What is the expected EPS growth for NORDSTROM INC (JWN) stock?
The Earnings per Share (EPS) of NORDSTROM INC (JWN) is expected to decline by -3.7% in the next year.