MACY'S INC (M)
US55616P1049 - Common Stock
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 32 industry peers in the Broadline Retail industry. While M is still in line with the averages on profitability rating, there are concerns on its financial health. M is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
M had positive earnings in the past year.
M had a positive operating cash flow in the past year.
Of the past 5 years M 4 years were profitable.
Each year in the past 5 years M had a positive operating cash flow.
1.2 Ratios
The Return On Assets of M (1.17%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.30%, M is in line with its industry, outperforming 46.88% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.93%, M is doing good in the industry, outperforming 65.63% of the companies in the same industry.
M had an Average Return On Invested Capital over the past 3 years of 11.96%. This is in line with the industry average of 11.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 4.3% | ||
| ROIC | 8.93% |
ROA(3y)5.25%
ROA(5y)-0.77%
ROE(3y)23.62%
ROE(5y)-14.96%
ROIC(3y)11.96%
ROIC(5y)N/A
1.3 Margins
M has a Profit Margin of 0.79%. This is comparable to the rest of the industry: M outperforms 43.75% of its industry peers.
In the last couple of years the Profit Margin of M has declined.
The Operating Margin of M (5.61%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of M has remained more or less at the same level.
With a Gross Margin value of 41.04%, M perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
M's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.61% | ||
| PM (TTM) | 0.79% | ||
| GM | 41.04% |
OM growth 3YN/A
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5Y-36.63%
GM growth 3Y8.26%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), M is creating some value.
The number of shares outstanding for M has been increased compared to 1 year ago.
The number of shares outstanding for M has been reduced compared to 5 years ago.
The debt/assets ratio for M is higher compared to a year ago.
2.2 Solvency
M has an Altman-Z score of 2.67. 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 (2.67) is better than 62.50% of its industry peers.
M has a debt to FCF ratio of 9.67. This is a negative value and a sign of low solvency as M would need 9.67 years to pay back of all of its debts.
M has a Debt to FCF ratio (9.67) which is comparable to the rest of the industry.
M has a Debt/Equity ratio of 0.70. This is a neutral value indicating M is somewhat dependend on debt financing.
M has a worse Debt to Equity ratio (0.70) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.07
WACC8.34%
2.3 Liquidity
M has a Current Ratio of 1.48. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
M has a Current ratio (1.48) which is comparable to the rest of the industry.
M has a Quick Ratio of 1.48. This is a bad value and indicates that M is not financially healthy enough and could expect problems in meeting its short term obligations.
M has a worse Quick ratio (0.34) than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
M shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.44%, which is quite good.
The Earnings Per Share has been decreasing by -3.60% on average over the past years.
M shows a decrease in Revenue. In the last year, the revenue decreased by -3.71%.
The Revenue has been decreasing by -1.50% on average over the past years.
EPS 1Y (TTM)13.44%
EPS 3YN/A
EPS 5Y-3.6%
EPS Q2Q%103.85%
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Sales Q2Q%-3.76%
3.2 Future
M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.74% yearly.
The Revenue is expected to decrease by -2.72% on average over the next years.
EPS Next Y-20.01%
EPS Next 2Y-13.03%
EPS Next 3Y-7.83%
EPS Next 5Y0.74%
Revenue Next Year-3.87%
Revenue Next 2Y-3.25%
Revenue Next 3Y-2.72%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.31, which indicates a rather cheap valuation of M.
Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.65, M is valued rather cheaply.
M is valuated cheaply with a Price/Forward Earnings ratio of 5.66.
M's Price/Forward Earnings ratio is rather cheap when compared to the industry. M is cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of M to the average of the S&P500 Index (23.56), we can say M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.31 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than M, based on the Enterprise Value to EBITDA ratio.
M's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. M is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.34 | ||
| EV/EBITDA | 2.89 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -7.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.03%
EPS Next 3Y-7.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.77%, M is a good candidate for dividend investing.
M's Dividend Yield is rather good when compared to the industry average which is at 4.82. M pays more dividend than 93.75% of the companies in the same industry.
M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
The dividend of M decreases each year by -15.16%.
M has been paying a dividend for at least 10 years, so it has a reliable track record.
M has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
M pays out 101.08% of its income as dividend. This is not a sustainable payout ratio.
DP101.08%
EPS Next 2Y-13.03%
EPS Next 3Y-7.83%
MACY'S INC
NYSE:M (11/21/2024, 12:50:00 PM)
14.905
+0.34 (+2.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.31 | ||
| Fwd PE | 5.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 4.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.61% | ||
| PM (TTM) | 0.79% | ||
| GM | 41.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.44%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-20.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.71%
Revenue growth 3Y9.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y