MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
22.0759 USD
+0.15 (+0.67%)
We assign a fundamental rating of 4 out of 10 to M. M was compared to 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.
In the past year M had a positive cash flow from operations.
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
The Return On Assets of M (2.80%) is comparable to the rest of the industry.
M has a better Return On Equity (11.04%) than 63.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.20%, M is in line with its industry, outperforming 56.67% of the companies in the same 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
The Profit Margin of M (2.10%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of M has grown nicely.
M has a Operating Margin (4.00%) which is in line with its industry peers.
M's Operating Margin has declined in the last couple of years.
M has a worse Gross Margin (40.38%) than 63.33% of its industry peers.
M's Gross Margin has been stable in the last couple of years.
| 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.
M has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, M has less shares outstanding
Compared to 1 year ago, M has an improved debt to assets ratio.
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's Altman-Z score of 2.41 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.
M has a Debt to FCF ratio of 3.05. This is in the better half of the industry: M outperforms 73.33% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that M is somewhat dependend on debt financing.
The Debt to Equity ratio of M (0.56) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.41 |
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.
With a Current ratio value of 1.25, M is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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.
The Quick ratio of M (0.18) is worse than 90.00% of its industry peers.
| 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.
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.
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.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.04% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.97 indicates a reasonable valuation of M.
93.33% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, M is valued rather cheaply.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of M.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M indicates a rather cheap valuation: M is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.98. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 9.8 |
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 93.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of M indicates a rather cheap valuation: M is cheaper than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -4.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
M's Dividend Yield is rather good when compared to the industry average which is at 2.24. M pays more dividend than 90.00% of the companies 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 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-7.61%
EPS Next 3Y-4.44%
NYSE:M (1/13/2026, 11:22:06 AM)
22.0759
+0.15 (+0.67%)
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 Cap5.85B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts54.74
Price Target22.28 (0.92%)
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 | 8.97 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.26 | ||
| P/FCF | 7.34 | ||
| P/OCF | 3.76 | ||
| P/B | 1.35 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)2.46
EY11.14%
EPS(NY)2.25
Fwd EY10.21%
FCF(TTM)3.01
FCFY13.63%
OCF(TTM)5.87
OCFY26.59%
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
WACC8.47%
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.