MACY'S INC (M) Fundamental Analysis & Valuation
NYSE:M • US55616P1049
Current stock price
20.45 USD
+0.51 (+2.56%)
Last:
This M fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. M Profitability Analysis
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 each 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 (3.96%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 13.23%, M is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- M has a Return On Invested Capital of 5.72%. This is comparable to the rest of the industry: M outperforms 53.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for M is below the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 13.23% | ||
| ROIC | 5.72% |
ROA(3y)2.59%
ROA(5y)4.54%
ROE(3y)9.04%
ROE(5y)18.94%
ROIC(3y)6.64%
ROIC(5y)8.92%
1.3 Margins
- M's Profit Margin of 2.84% is in line compared to the rest of the industry. M outperforms 56.67% of its industry peers.
- In the last couple of years the Profit Margin of M has declined.
- M has a Operating Margin (3.91%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of M has declined.
- Looking at the Gross Margin, with a value of 40.33%, M is doing worse than 63.33% of the companies in the same industry.
- M's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.91% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.33% |
OM growth 3Y-15.37%
OM growth 5YN/A
PM growth 3Y-14.26%
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y4.67%
2. M Health Analysis
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.
- Compared to 1 year ago, M has less shares outstanding
- M has less shares outstanding than it did 5 years ago.
- M has a better debt/assets ratio than last year.
2.2 Solvency
- M has an Altman-Z score of 2.61. This is not the best score and indicates that M is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of M (2.61) is comparable to the rest of the industry.
- The Debt to FCF ratio of M is 3.52, which is a good value as it means it would take M, 3.52 years of fcf income to pay off all of its debts.
- M has a better Debt to FCF ratio (3.52) than 70.00% of its industry peers.
- M has a Debt/Equity ratio of 0.50. This is a neutral value indicating M is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.50, M perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.63
WACC9.02%
2.3 Liquidity
- M has a Current Ratio of 1.49. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
- M's Current ratio of 1.49 is in line compared to the rest of the industry. M outperforms 56.67% of its industry peers.
- A Quick Ratio of 0.50 indicates that M may have some problems paying its short term obligations.
- M has a Quick ratio of 0.50. This is amonst the worse of the industry: M underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.5 |
3. M Growth Analysis
3.1 Past
- The earnings per share for M have decreased strongly by -11.74% in the last year.
- M shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.54% yearly.
- Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -1.67% in the last year.
- The Revenue has been growing slightly by 4.56% on average over the past years.
EPS 1Y (TTM)-11.74%
EPS 3Y-18.54%
EPS 5YN/A
EPS Q2Q%-7.22%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-3.85%
Revenue growth 5Y4.56%
Sales Q2Q%-1.66%
3.2 Future
- M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.93% yearly.
- Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -5.24% on average per year.
EPS Next Y-9.51%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
EPS Next 5Y3.93%
Revenue Next Year-0.95%
Revenue Next 2Y-1.11%
Revenue Next 3Y-5.24%
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. M Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.78, the valuation of M can be described as very reasonable.
- Based on the Price/Earnings ratio, M is valued cheaper than 96.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.95, M is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.70 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 38.68. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
- M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 100.00% of the companies in the same industry.
- 86.67% of the companies in the same industry are more expensive than M, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 3.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
5. M Dividend Analysis
5.1 Amount
- M has a Yearly Dividend Yield of 4.01%, which is a nice return.
- M's Dividend Yield is rather good when compared to the industry average which is at 0.70. M pays more dividend than 96.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
- On average, the dividend of M grows each year by 14.05%, which is quite nice.
- 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)14.05%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 30.64% of the earnings are spent on dividend by M. This is a low number and sustainable payout ratio.
- M's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.64%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
M Fundamentals: All Metrics, Ratios and Statistics
NYSE:M (4/21/2026, 3:28:05 PM)
20.45
+0.51 (+2.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-18 2026-03-18/bmo
Earnings (Next)05-26 2026-05-26
Inst Owners92.08%
Inst Owner Change1.28%
Ins Owners0.08%
Ins Owner Change1.26%
Market Cap5.39B
Revenue(TTM)22.62B
Net Income(TTM)643.00M
Analysts69.47
Price Target19.6 (-4.16%)
Short Float %11.16%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.73
Dividend Growth(5Y)14.05%
DP30.64%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-13 2026-03-13 (0.1915)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)84.71%
Min EPS beat(2)6.73%
Max EPS beat(2)162.7%
EPS beat(4)4
Avg EPS beat(4)74.42%
Min EPS beat(4)6.73%
Max EPS beat(4)162.7%
EPS beat(8)8
Avg EPS beat(8)70.12%
EPS beat(12)12
Avg EPS beat(12)450.87%
EPS beat(16)16
Avg EPS beat(16)351.94%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.97%
Revenue beat(16)5
Avg Revenue beat(16)-0.76%
PT rev (1m)-11.24%
PT rev (3m)-11.69%
EPS NQ rev (1m)-87.22%
EPS NQ rev (3m)-86.13%
EPS NY rev (1m)-7.56%
EPS NY rev (3m)-6.58%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 9.7 | ||
| P/S | 0.24 | ||
| P/FCF | 7.82 | ||
| P/OCF | 3.77 | ||
| P/B | 1.11 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 3.62 |
EPS(TTM)2.33
EY11.39%
EPS(NY)2.11
Fwd EY10.31%
FCF(TTM)2.62
FCFY12.79%
OCF(TTM)5.42
OCFY26.51%
SpS85.77
BVpS18.43
TBVpS13.7
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.0813 (51.99%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 13.23% | ||
| ROCE | 7.53% | ||
| ROIC | 5.72% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 7.26% | ||
| OM | 3.91% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.33% | ||
| FCFM | 3.05% |
ROA(3y)2.59%
ROA(5y)4.54%
ROE(3y)9.04%
ROE(5y)18.94%
ROIC(3y)6.64%
ROIC(5y)8.92%
ROICexc(3y)7.38%
ROICexc(5y)9.99%
ROICexgc(3y)9.14%
ROICexgc(5y)12.19%
ROCE(3y)8.74%
ROCE(5y)11.74%
ROICexgc growth 3Y-16.19%
ROICexgc growth 5YN/A
ROICexc growth 3Y-17%
ROICexc growth 5YN/A
OM growth 3Y-15.37%
OM growth 5YN/A
PM growth 3Y-14.26%
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y4.67%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 82.77% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 5.29 | ||
| Cash Conversion | 80.43% | ||
| Profit Quality | 107.31% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.61 |
F-Score8
WACC9.02%
ROIC/WACC0.63
Cap/Depr(3y)97.86%
Cap/Depr(5y)102.6%
Cap/Sales(3y)3.76%
Cap/Sales(5y)3.74%
Profit Quality(3y)289.62%
Profit Quality(5y)208.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.74%
EPS 3Y-18.54%
EPS 5YN/A
EPS Q2Q%-7.22%
EPS Next Y-9.51%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
EPS Next 5Y3.93%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-3.85%
Revenue growth 5Y4.56%
Sales Q2Q%-1.66%
Revenue Next Year-0.95%
Revenue Next 2Y-1.11%
Revenue Next 3Y-5.24%
Revenue Next 5YN/A
EBIT growth 1Y-5.66%
EBIT growth 3Y-18.63%
EBIT growth 5YN/A
EBIT Next Year104.46%
EBIT Next 3Y25.17%
EBIT Next 5Y15.96%
FCF growth 1Y74.24%
FCF growth 3Y29.19%
FCF growth 5Y30.4%
OCF growth 1Y11.89%
OCF growth 3Y-3.97%
OCF growth 5Y17.12%
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 5 / 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.
Can you provide the profitability details for MACY'S INC?
MACY'S INC (M) has a profitability rating of 4 / 10.
What is the valuation of MACY'S INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MACY'S INC (M) is 8.78 and the Price/Book (PB) ratio is 1.11.
What is the earnings growth outlook for MACY'S INC?
The Earnings per Share (EPS) of MACY'S INC (M) is expected to decline by -9.51% in the next year.