MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
21.93 USD
-1.24 (-5.35%)
21.9426 USD
+0.01 (+0.06%)
M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. Both the profitability and the financial health of M get a neutral evaluation. Nothing too spectacular is happening here. 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.
M had a positive operating cash flow in the past year.
M had positive earnings in 4 of the past 5 years.
In the past 5 years M always reported a positive cash flow from operatings.
1.2 Ratios
M has a Return On Assets of 2.80%. This is comparable to the rest of the industry: M outperforms 56.67% of its industry peers.
With a decent Return On Equity value of 11.04%, M is doing good in the industry, outperforming 63.33% of the companies in the same industry.
M has a Return On Invested Capital of 6.20%. This is comparable to the rest of the industry: M outperforms 56.67% of its industry peers.
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
M's Profit Margin of 2.10% is in line compared to the rest of the industry. M outperforms 56.67% of its industry peers.
M's Profit Margin has improved in the last couple of years.
M has a Operating Margin (4.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of M has declined.
With a Gross Margin value of 40.38%, M is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
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.
The number of shares outstanding for M has been increased compared to 1 year ago.
Compared to 5 years ago, M has less shares outstanding
The debt/assets ratio for M has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that M is not a great score, but indicates only limited risk for bankruptcy at the moment.
M's Altman-Z score of 2.43 is in line compared to the rest of the industry. M outperforms 60.00% of its industry peers.
M has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as M would need 3.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.05, M is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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 | 2.43 |
ROIC/WACC0.73
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.25 indicates that M should not have too much problems paying its short term obligations.
M has a Current ratio of 1.25. This is in the lower half of the industry: M underperforms 70.00% of its industry peers.
A Quick Ratio of 0.18 indicates that M may have some problems paying 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
M shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.23%.
Measured over the past years, M shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.93% on average per year.
The Revenue has decreased by -2.83% in the past year.
M shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.91% yearly.
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
The Earnings Per Share is expected to grow by 0.62% on average over the next years.
Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -2.04% on average per year.
EPS Next Y-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
EPS Next 5Y0.62%
Revenue Next Year-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.91 indicates a reasonable valuation of M.
Based on the Price/Earnings ratio, M is valued cheaper than 93.33% of the companies in the same industry.
M's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio of 9.73, the valuation of M can be described as reasonable.
M's Price/Forward Earnings ratio is rather cheap when compared to the industry. M is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of M to the average of the S&P500 Index (23.98), we can say M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, M is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -4.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, M has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.24, M pays a better dividend. On top of this M pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of M decreases each year by -14.37%.
M has been paying a dividend for at least 10 years, so it has 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
41.21% of the earnings are spent on dividend by M. This is a bit on the high side, but may be sustainable.
DP41.21%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
21.93
-1.24 (-5.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change0.03%
Ins Owners0.05%
Ins Owner Change-2.58%
Market Cap5.81B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts54.74
Price Target22.28 (1.6%)
Short Float %7.37%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)0.92%
PT rev (3m)37.35%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)11.62%
EPS NY rev (3m)12.04%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.26 | ||
| P/FCF | 7.29 | ||
| P/OCF | 3.74 | ||
| P/B | 1.34 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 4.5 |
EPS(TTM)2.46
EY11.22%
EPS(NY)2.25
Fwd EY10.28%
FCF(TTM)3.01
FCFY13.72%
OCF(TTM)5.87
OCFY26.77%
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 | 2.43 |
F-Score6
WACC8.47%
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-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
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-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
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 -16.5% in the next year.