MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
23.17 USD
-0.55 (-2.32%)
23.17 USD
0 (0%)
Overall M gets a fundamental rating of 4 out of 10. We evaluated M 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.
In the past 5 years M always reported a positive cash flow from operatings.
1.2 Ratios
M has a Return On Assets (2.80%) which is in line with its industry peers.
M has a better Return On Equity (11.04%) than 63.33% of its industry peers.
M has a Return On Invested Capital (6.20%) which is in line with 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
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.
Looking at the Operating Margin, with a value of 4.00%, M is in line with its industry, outperforming 50.00% of the companies in the same industry.
M's Operating Margin has declined in the last couple of years.
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.
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.
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
Compared to 1 year ago, M has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.44 indicates that M is not a great score, but indicates only limited risk for bankruptcy at the moment.
M has a Altman-Z score (2.44) which is in line with its industry peers.
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.
M's Debt to FCF ratio of 3.05 is fine compared to the rest 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.
M's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. M is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.44 |
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 worse Current ratio (1.25) than 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
The earnings per share for M have decreased strongly by -25.23% 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 -2.83% in the last 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
M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
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 5Y0.4%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.42, which indicates a very decent valuation of M.
93.33% 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 (27.19), we can say M is valued rather cheaply.
A Price/Forward Earnings ratio of 10.28 indicates a reasonable 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.
M's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 10.28 |
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.
M's Price/Free Cash Flow ratio is rather cheap when compared to the industry. M is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 4.58 |
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 3.31%, M has a reasonable but not impressive dividend return.
M's Dividend Yield is rather good when compared to the industry average which is at 2.28. M pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
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%
23.17
-0.55 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-2.58%
Market Cap6.14B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts69.47
Price Target22.28 (-3.84%)
Short Float %7.37%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)33.53%
PT rev (3m)40.56%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)0.07%
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)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.27 | ||
| P/FCF | 7.7 | ||
| P/OCF | 3.95 | ||
| P/B | 1.42 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)2.46
EY10.62%
EPS(NY)2.25
Fwd EY9.73%
FCF(TTM)3.01
FCFY12.99%
OCF(TTM)5.87
OCFY25.34%
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 | 2.44 |
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 5Y0.4%
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 5Y12.63%
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.