MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - New York Stock Exchange, Inc. - US55616P1049 - Common Stock - Currency: USD
M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. There are concerns on the financial health of M while its profitability can be described as average. M is valued quite cheap, but it does not seem to be growing. Finally M also has an excellent dividend rating.
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.
Of the past 5 years M 4 years were profitable.
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 3.47%, M is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
M's Return On Equity of 12.54% is fine compared to the rest of the industry. M outperforms 67.86% of its industry peers.
With a Return On Invested Capital value of 5.73%, M perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
M had an Average Return On Invested Capital over the past 3 years of 8.32%. This is below the industry average of 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 12.54% | ||
| ROIC | 5.73% |
ROA(3y)3.6%
ROA(5y)-0.67%
ROE(3y)14.24%
ROE(5y)-14.45%
ROIC(3y)8.32%
ROIC(5y)N/A
1.3 Margins
M's Profit Margin of 2.45% is fine compared to the rest of the industry. M outperforms 60.71% of its industry peers.
M's Profit Margin has improved in the last couple of years.
M has a Operating Margin of 3.86%. This is comparable to the rest of the industry: M outperforms 53.57% of its industry peers.
In the last couple of years the Operating Margin of M has declined.
The Gross Margin of M (40.40%) is worse than 60.71% 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 | 3.86% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.4% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M is destroying value.
M has more shares outstanding than it did 1 year ago.
M has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, M has an improved debt to assets ratio.
2.2 Solvency
M has a debt to FCF ratio of 10.90. This is a negative value and a sign of low solvency as M would need 10.90 years to pay back of all of its debts.
M's Debt to FCF ratio of 10.90 is in line compared to the rest of the industry. M outperforms 50.00% of its industry peers.
M has a Debt/Equity ratio of 0.62. This is a neutral value indicating M is somewhat dependend on debt financing.
The Debt to Equity ratio of M (0.62) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.43 indicates that M should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, M is in line with its industry, outperforming 42.86% of the companies in the same industry.
M has a Quick Ratio of 1.43. 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 0.37, M is doing worse than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -20.69% in the last year.
M shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.93% yearly.
Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -3.77% in the last year.
The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)-20.69%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-40.74%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-5.1%
3.2 Future
The Earnings Per Share is expected to grow by 0.55% 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 -8.01% on average per year.
EPS Next Y-31.87%
EPS Next 2Y-16.15%
EPS Next 3Y-11.11%
EPS Next 5Y0.55%
Revenue Next Year-5.01%
Revenue Next 2Y-3.89%
Revenue Next 3Y-8.01%
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 4.95, the valuation of M can be described as very cheap.
100.00% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of M to the average of the S&P500 Index (27.45), we can say M is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.74, the valuation of M can be described as very cheap.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 89.29% of the companies in the same industry.
M is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of M indicates a rather cheap valuation: M is cheaper than 92.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, M is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 3.02 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -11.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.15%
EPS Next 3Y-11.11%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 6.56%, which is a nice return.
M's Dividend Yield is rather good when compared to the industry average which is at 11.83. M pays more dividend than 96.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
The dividend of M decreases each year by -14.36%.
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)-14.36%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.95% of the earnings are spent on dividend by M. This is a low number and sustainable payout ratio.
DP34.95%
EPS Next 2Y-16.15%
EPS Next 3Y-11.11%
12.52
+0.04 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change6.1%
Ins Owners0.18%
Ins Owner Change1.79%
Market Cap3.49B
Analysts54.74
Price Target13.5 (7.83%)
Short Float %8.09%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.36%
DP34.95%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.85%
Min EPS beat(2)8.59%
Max EPS beat(2)15.11%
EPS beat(4)4
Avg EPS beat(4)50.03%
Min EPS beat(4)8.59%
Max EPS beat(4)105.43%
EPS beat(8)8
Avg EPS beat(8)637.43%
EPS beat(12)12
Avg EPS beat(12)442.79%
EPS beat(16)16
Avg EPS beat(16)388.43%
Revenue beat(2)1
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.83%
PT rev (1m)5.06%
PT rev (3m)-20.18%
EPS NQ rev (1m)-48.24%
EPS NQ rev (3m)-47.82%
EPS NY rev (1m)-6.89%
EPS NY rev (3m)-24.54%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.15 | ||
| P/FCF | 13.68 | ||
| P/OCF | 3.21 | ||
| P/B | 0.78 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 3.02 |
EPS(TTM)2.53
EY20.21%
EPS(NY)1.86
Fwd EY14.83%
FCF(TTM)0.92
FCFY7.31%
OCF(TTM)3.89
OCFY31.11%
SpS81.84
BVpS15.98
TBVpS11.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 12.54% | ||
| ROCE | 7.51% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 7.04% | ||
| OM | 3.86% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.4% | ||
| FCFM | 1.12% |
ROA(3y)3.6%
ROA(5y)-0.67%
ROE(3y)14.24%
ROE(5y)-14.45%
ROIC(3y)8.32%
ROIC(5y)N/A
ROICexc(3y)9.11%
ROICexc(5y)N/A
ROICexgc(3y)11.15%
ROICexgc(5y)N/A
ROCE(3y)10.9%
ROCE(5y)N/A
ROICexcg growth 3Y-25.28%
ROICexcg 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-Score7
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 93.89% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.54% | ||
| Profit Quality | 45.7% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | N/A |
F-Score7
WACC8.57%
ROIC/WACC0.67
Cap/Depr(3y)120.64%
Cap/Depr(5y)95.76%
Cap/Sales(3y)4.37%
Cap/Sales(5y)3.61%
Profit Quality(3y)262.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.69%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-40.74%
EPS Next Y-31.87%
EPS Next 2Y-16.15%
EPS Next 3Y-11.11%
EPS Next 5Y0.55%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-5.1%
Revenue Next Year-5.01%
Revenue Next 2Y-3.89%
Revenue Next 3Y-8.01%
Revenue Next 5YN/A
EBIT growth 1Y-30.07%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year72.42%
EBIT Next 3Y16.11%
EBIT Next 5Y12.64%
FCF growth 1Y79.58%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y-26.29%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%