MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
21.74 USD
+0.17 (+0.79%)
21.6317 USD
-0.11 (-0.5%)
M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. M has an average financial health and profitability rating. M is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- M had positive earnings in the past year.
- In the past year M had a positive cash flow from operations.
- M had positive earnings in 4 of the past 5 years.
- M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.80%, M is in line with its industry, outperforming 56.67% of the companies in the same industry.
- M has a Return On Equity of 11.04%. This is in the better half of the industry: M outperforms 63.33% of its industry peers.
- M has a Return On Invested Capital (6.20%) which is comparable to the rest of the industry.
- M had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 11.04% | ||
| ROIC | 6.2% |
ROA(3y)3.54%
ROA(5y)-0.71%
ROE(3y)13.99%
ROE(5y)-14.6%
ROIC(3y)8.23%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 2.10%, M is in line with its industry, outperforming 56.67% of the companies in the same industry.
- M's Profit Margin has improved in the last couple of years.
- M has a Operating Margin of 4.00%. This is comparable to the rest of the industry: M outperforms 50.00% of its industry peers.
- In the last couple of years the Operating Margin of M has declined.
- The Gross Margin of M (40.38%) is worse than 63.33% of its industry peers.
- In the last couple of years the Gross Margin of M has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4% | ||
| PM (TTM) | 2.1% | ||
| GM | 40.38% |
OM growth 3Y-23.39%
OM growth 5Y-2.37%
PM growth 3Y-23.51%
PM growth 5Y2.59%
GM growth 3Y-0.48%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
- M 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, M has more shares outstanding
- Compared to 5 years ago, M has less shares outstanding
- M has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that M is not a great score, but indicates only limited risk for bankruptcy at the moment.
- M has a Altman-Z score (2.41) which is comparable to the rest of the industry.
- The Debt to FCF ratio of M is 3.05, which is a good value as it means it would take M, 3.05 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of M (3.05) is better than 73.33% of its industry peers.
- M has a Debt/Equity ratio of 0.56. This is a neutral value indicating M is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.56, M is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.73
WACC8.5%
2.3 Liquidity
- M has a Current Ratio of 1.25. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of M (1.25) is worse than 70.00% of its industry peers.
- M has a Quick Ratio of 1.25. This is a bad value and indicates that M is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.18, M is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
- The earnings per share for M have decreased strongly by -25.23% in the last year.
- The Earnings Per Share has been decreasing by -1.93% on average over the past years.
- M shows a decrease in Revenue. In the last year, the revenue decreased by -2.83%.
- The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)-25.23%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%125%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
3.2 Future
- Based on estimates for the next years, M will show a small growth in Earnings Per Share. The EPS will grow by 0.62% on average per year.
- Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -2.90% on average per year.
EPS Next Y-16.11%
EPS Next 2Y-7.54%
EPS Next 3Y-4.21%
EPS Next 5Y0.62%
Revenue Next Year-3.74%
Revenue Next 2Y-2.96%
Revenue Next 3Y-2.9%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.84, the valuation of M can be described as very reasonable.
- Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
- M is valuated cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.63 indicates a reasonable valuation of M.
- Based on the Price/Forward Earnings ratio, M is valued cheaper than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
- 90.00% of the companies in the same industry are more expensive than M, based on the Enterprise Value to EBITDA ratio.
- 86.67% of the companies in the same industry are more expensive than M, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 4.29 |
4.3 Compensation for Growth
- A cheap valuation may be justified as M's earnings are expected to decrease with -4.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.54%
EPS Next 3Y-4.21%
5. Dividend
5.1 Amount
- M has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.18, M pays a better dividend. On top of this M pays more dividend than 93.33% of the companies listed in the same industry.
- M's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
- The dividend of M decreases each year by -14.37%.
- M has paid a dividend for at least 10 years, which is a reliable track record.
- M has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-14.37%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- M pays out 41.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.21%
EPS Next 2Y-7.54%
EPS Next 3Y-4.21%
21.74
+0.17 (+0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)12-03 2025-12-03/bmo
Earnings (Next)05-26 2026-05-26
Inst Owners92.13%
Inst Owner Change0.03%
Ins Owners0.05%
Ins Owner Change-2.58%
Market Cap5.76B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts54.74
Price Target22.19 (2.07%)
Short Float %7.37%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.37%
DP41.21%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)141.17%
Min EPS beat(2)119.65%
Max EPS beat(2)162.7%
EPS beat(4)4
Avg EPS beat(4)76.51%
Min EPS beat(4)8.59%
Max EPS beat(4)162.7%
EPS beat(8)8
Avg EPS beat(8)72.07%
EPS beat(12)12
Avg EPS beat(12)450.85%
EPS beat(16)16
Avg EPS beat(16)352.8%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.1%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)0.52%
PT rev (3m)36.8%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0.46%
EPS NY rev (3m)12.55%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.84 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.25 | ||
| P/FCF | 7.23 | ||
| P/OCF | 3.7 | ||
| P/B | 1.33 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 4.29 |
EPS(TTM)2.46
EY11.32%
EPS(NY)2.26
Fwd EY10.38%
FCF(TTM)3.01
FCFY13.84%
OCF(TTM)5.87
OCFY27%
SpS85.74
BVpS16.34
TBVpS11.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 11.04% | ||
| ROCE | 8.12% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 7.31% | ||
| OM | 4% | ||
| PM (TTM) | 2.1% | ||
| GM | 40.38% | ||
| FCFM | 3.51% |
ROA(3y)3.54%
ROA(5y)-0.71%
ROE(3y)13.99%
ROE(5y)-14.6%
ROIC(3y)8.23%
ROIC(5y)N/A
ROICexc(3y)9.01%
ROICexc(5y)N/A
ROICexgc(3y)11.04%
ROICexgc(5y)N/A
ROCE(3y)10.79%
ROCE(5y)N/A
ROICexgc growth 3Y-25.28%
ROICexgc growth 5Y-1.61%
ROICexc growth 3Y-26.03%
ROICexc growth 5Y2.34%
OM growth 3Y-23.39%
OM growth 5Y-2.37%
PM growth 3Y-23.51%
PM growth 5Y2.59%
GM growth 3Y-0.48%
GM growth 5Y0.08%
F-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 84.6% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 4.68 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 166.74% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 2.41 |
F-Score6
WACC8.5%
ROIC/WACC0.73
Cap/Depr(3y)120.64%
Cap/Depr(5y)95.76%
Cap/Sales(3y)4.36%
Cap/Sales(5y)3.6%
Profit Quality(3y)263.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.23%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%125%
EPS Next Y-16.11%
EPS Next 2Y-7.54%
EPS Next 3Y-4.21%
EPS Next 5Y0.62%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
Revenue Next Year-3.74%
Revenue Next 2Y-2.96%
Revenue Next 3Y-2.9%
Revenue Next 5YN/A
EBIT growth 1Y-18.64%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year79.1%
EBIT Next 3Y21.46%
EBIT Next 5Y12.87%
FCF growth 1Y255.8%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y21.01%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%
MACY'S INC / M FAQ
What is the ChartMill fundamental rating of MACY'S INC (M) stock?
ChartMill assigns a fundamental rating of 4 / 10 to M.
What is the valuation status of MACY'S INC (M) stock?
ChartMill assigns a valuation rating of 7 / 10 to MACY'S INC (M). This can be considered as Undervalued.
What is the profitability of M stock?
MACY'S INC (M) has a profitability rating of 4 / 10.
Can you provide the financial health for M stock?
The financial health rating of MACY'S INC (M) is 4 / 10.
What is the expected EPS growth for MACY'S INC (M) stock?
The Earnings per Share (EPS) of MACY'S INC (M) is expected to decline by -16.11% in the next year.