MACY'S INC (M) Fundamental Analysis & Valuation

NYSE:M • US55616P1049

Current stock price

18.49 USD
-0.01 (-0.05%)
At close:
18.49 USD
0 (0%)
After Hours:

This M fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. M Profitability Analysis

1.1 Basic Checks

  • In the past year M was profitable.
  • 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.
M Yearly Net Income VS EBIT VS OCF VS FCFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • With a Return On Assets value of 2.80%, M perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
  • M's Return On Equity of 11.04% is fine compared to the rest of the industry. M outperforms 70.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.20%, M is in the better half of the industry, outperforming 66.67% 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 8.76%.
Industry RankSector 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
M Yearly ROA, ROE, ROICM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150

1.3 Margins

  • M has a Profit Margin (2.10%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of M has grown nicely.
  • With a Operating Margin value of 4.00%, M perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of M has declined.
  • 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 RankSector 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%
M Yearly Profit, Operating, Gross MarginsM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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4

2. M Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M is destroying value.
  • Compared to 1 year ago, M has more shares outstanding
  • M has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, M has an improved debt to assets ratio.
M Yearly Shares OutstandingM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
M Yearly Total Debt VS Total AssetsM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 2.37 indicates that M is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • M has a Altman-Z score (2.37) which is comparable to the rest of the industry.
  • 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.
  • With a Debt to Equity ratio value of 0.56, M perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 3.05
Altman-Z 2.37
ROIC/WACC0.72
WACC8.62%
M Yearly LT Debt VS Equity VS FCFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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 66.67% of its industry peers.
  • A Quick Ratio of 0.18 indicates that M may have some problems paying its short term obligations.
  • M has a Quick ratio of 0.18. This is amonst the worse of the industry: M underperforms 93.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.18
M Yearly Current Assets VS Current LiabilitesM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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1

3. M Growth Analysis

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.
  • 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

  • M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.62% yearly.
  • Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -2.86% on average per year.
EPS Next Y-15.53%
EPS Next 2Y-7.05%
EPS Next 3Y-4.82%
EPS Next 5Y0.62%
Revenue Next Year-3.29%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.86%
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 decreasing.
M Yearly Revenue VS EstimatesM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B 25B
M Yearly EPS VS EstimatesM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 -2 4

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7

4. M Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.52, the valuation of M can be described as very cheap.
  • 96.67% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
  • M is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of M.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. M is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.52
Fwd PE 8.11
M Price Earnings VS Forward Price EarningsM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 93.33% of the companies 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 RankSector Rank
P/FCF 6.17
EV/EBITDA 3.83
M Per share dataM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • M's earnings are expected to decrease with -4.82% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.05%
EPS Next 3Y-4.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. M Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.04%, M is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.68, M pays a better dividend. On top of this M pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, M pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.04%

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
M Yearly Dividends per shareM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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-7.05%
EPS Next 3Y-4.82%
M Yearly Income VS Free CF VS DividendM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
M Dividend Payout.M Dividend Payout, showing the Payout Ratio.M Dividend Payout.PayoutRetained Earnings

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M Fundamentals: All Metrics, Ratios and Statistics

MACY'S INC

NYSE:M (3/26/2026, 8:04:00 PM)

After market: 18.49 0 (0%)

18.49

-0.01 (-0.05%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)12-03
Earnings (Next)05-26
Inst Owners90.94%
Inst Owner Change-2.05%
Ins Owners0.05%
Ins Owner Change-0.55%
Market Cap4.92B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts54.74
Price Target22.08 (19.42%)
Short Float %9.05%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 4.04%
Yearly Dividend0.7
Dividend Growth(5Y)-14.37%
DP41.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-13
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)-0.51%
PT rev (3m)-0.91%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0.69%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.33%
Valuation
Industry RankSector Rank
PE 7.52
Fwd PE 8.11
P/S 0.22
P/FCF 6.17
P/OCF 3.16
P/B 1.14
P/tB 1.6
EV/EBITDA 3.83
EPS(TTM)2.46
EY13.3%
EPS(NY)2.28
Fwd EY12.34%
FCF(TTM)3
FCFY16.21%
OCF(TTM)5.85
OCFY31.63%
SpS85.42
BVpS16.28
TBVpS11.58
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.02
Profitability
Industry RankSector 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 RankSector 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 2.37
F-Score6
WACC8.62%
ROIC/WACC0.72
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-15.53%
EPS Next 2Y-7.05%
EPS Next 3Y-4.82%
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-3.29%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.86%
Revenue Next 5YN/A
EBIT growth 1Y-18.64%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year78.51%
EBIT Next 3Y20.64%
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 Fundamental Analysis 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 5 / 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 -15.53% in the next year.