NORDSTROM INC (JWN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:JWN • US6556641008
24.66 USD
+0.02 (+0.08%)
At close: May 20, 2025
24.6601 USD
0 (0%)
After Hours: 5/20/2025, 8:10:38 PM
We assign a fundamental rating of 4 out of 10 to JWN. 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 has a correct valuation and a medium 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.
- 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'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.
- 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 in line with the industry average of 9.28%.
- 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
- The Profit Margin of JWN (1.96%) is better than 61.29% of its industry peers.
- JWN's Profit Margin has declined in the last couple of years.
- The Operating Margin of JWN (3.66%) is comparable to the rest of the industry.
- JWN's Operating Margin has declined in the last couple of years.
- The Gross Margin of JWN (37.43%) is worse 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
- 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.
- JWN has more shares outstanding than it did 5 years ago.
- JWN has a better debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 1.90, JWN is in line with its industry, outperforming 51.61% of the companies in the same industry.
- 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 has a Debt to FCF ratio of 3.49. This is comparable 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 worse Debt to Equity ratio (2.30) than 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.
- 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.
- 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 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
- The Earnings Per Share has been growing slightly by 1.42% over the past year.
- Measured over the past years, JWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.54% on average per year.
- JWN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.21%.
- JWN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.66% yearly.
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.
- 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
- 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
- Based on the Price/Earnings ratio of 11.47, the valuation of JWN can be described as reasonable.
- 77.42% of the companies in the same industry are more expensive than JWN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| 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.
- 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
- 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 2.38. JWN pays more dividend than 83.87% of the companies in the same industry.
- JWN's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| 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%
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.