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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Looking at the Return On Equity, with a value of 25.88%, JWN belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
JWN has a better Return On Invested Capital (7.75%) than 64.52% of its industry peers.
JWN had an Average Return On Invested Capital over the past 3 years of 7.32%. This 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

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.
The Operating Margin of JWN (3.66%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of JWN has declined.
With a Gross Margin value of 37.43%, JWN is not doing good in the industry: 64.52% 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	3.66%
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so JWN is destroying value.
JWN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, JWN has more shares outstanding
Compared to 1 year ago, JWN has an improved debt to assets ratio.

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.
With a Altman-Z score value of 1.90, JWN perfoms like the industry average, 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.
With a Debt to FCF ratio value of 3.49, JWN perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
JWN has a Debt/Equity ratio of 2.30. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.30, JWN is doing worse than 80.65% of the companies in the same industry.

		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.
JWN's Current ratio of 1.19 is on the low side compared to the rest of the industry. JWN is outperformed by 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 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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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

JWN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.79% yearly.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.47 indicates a reasonable valuation of JWN.
JWN's Price/Earnings ratio is a bit cheaper when compared to the industry. JWN is cheaper than 77.42% of the companies in the same industry.
JWN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, 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

JWN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JWN is cheaper than 83.87% of the companies in the same industry.
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%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.37%, JWN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.35, JWN pays a better dividend. On top of this JWN pays more dividend than 83.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, JWN pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.37%

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 in the last 3 years.

Dividend Growth(5Y)-12.34%

Div Incr Years0

Div Non Decr Years2

5.3 Sustainability

42.03% of the earnings are spent on dividend by JWN. This is a bit on the high side, but may be sustainable.

DP42.03%

EPS Next 2Y-4.07%

EPS Next 3Y3.55%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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.