MACY'S INC (M) Stock Fundamental Analysis
USA - NYSE:M - US55616P1049 - Common Stock
17.82 USD
-0.14 (-0.78%)
17.9 USD
+0.08 (+0.45%)
We assign a fundamental rating of 4 out of 10 to M. M was compared to 28 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 valued quite cheap, but it does not seem to be growing. Finally M also has an excellent dividend rating.
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.18%, M is in line with its industry, outperforming 57.14% of the companies in the same industry.
M's Return On Equity of 11.12% is fine compared to the rest of the industry. M outperforms 64.29% of its industry peers.
The Return On Invested Capital of M (5.71%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for M is below the industry average of 10.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.12% | ||
| ROIC | 5.71% |
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
M has a Profit Margin of 2.18%. This is in the better half of the industry: M outperforms 60.71% of its industry peers.
In the last couple of years the Profit Margin of M has grown nicely.
M has a Operating Margin of 3.74%. This is comparable to the rest of the industry: M outperforms 53.57% of its industry peers.
In the last couple of years the Operating Margin of M has declined.
M's Gross Margin of 40.31% is on the low side compared to the rest of the industry. M is outperformed by 60.71% of its industry peers.
In the last couple of years the Gross Margin of M has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 2.18% | ||
| GM | 40.31% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), M is creating some 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
The Debt to FCF ratio of M is 4.35, which is a neutral value as it means it would take M, 4.35 years of fcf income to pay off all of its debts.
M has a better Debt to FCF ratio (4.35) than 64.29% of its industry peers.
M has a Debt/Equity ratio of 0.55. This is a neutral value indicating M is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, M is doing worse than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.11%
2.3 Liquidity
M has a Current Ratio of 1.38. 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 worse Current ratio (1.38) than 60.71% of its industry peers.
A Quick Ratio of 0.35 indicates that M may have some problems paying its short term obligations.
M has a Quick ratio of 0.35. This is amonst the worse of the industry: M underperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
M shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.35%.
The Earnings Per Share has been decreasing by -1.93% on average over the past years.
Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -3.43% in the last year.
The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)-30.35%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-22.64%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-2.53%
3.2 Future
The Earnings Per Share is expected to grow by 0.40% on average over the next years.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.98% yearly.
EPS Next Y-25.47%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
EPS Next 5Y0.4%
Revenue Next Year-5.01%
Revenue Next 2Y-3.54%
Revenue Next 3Y-4.98%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
M is valuated cheaply with a Price/Earnings ratio of 7.39.
Based on the Price/Earnings ratio, M is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of M to the average of the S&P500 Index (27.40), we can say M is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.80, the valuation of M can be described as reasonable.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 89.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 8.8 |
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 96.43% of the companies listed in the same industry.
M's Price/Free Cash Flow ratio is rather cheap when compared to the industry. M is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -9.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.05, M pays a better dividend. On top of this M pays more dividend than 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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 39.60% of its income as dividend. This is a sustainable payout ratio.
DP39.6%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
17.82
-0.14 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change0.06%
Ins Owners0.09%
Ins Owner Change-1.93%
Market Cap4.78B
Analysts69
Price Target16.22 (-8.98%)
Short Float %9.75%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.37%
DP39.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)64.12%
Min EPS beat(2)8.59%
Max EPS beat(2)119.65%
EPS beat(4)4
Avg EPS beat(4)62.19%
Min EPS beat(4)8.59%
Max EPS beat(4)119.65%
EPS beat(8)8
Avg EPS beat(8)641.26%
EPS beat(12)12
Avg EPS beat(12)451.51%
EPS beat(16)16
Avg EPS beat(16)360.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.05%
PT rev (1m)20.15%
PT rev (3m)20.15%
EPS NQ rev (1m)0.92%
EPS NQ rev (3m)22.57%
EPS NY rev (1m)7.38%
EPS NY rev (3m)9.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 8.8 | ||
| P/S | 0.21 | ||
| P/FCF | 7.94 | ||
| P/OCF | 3.43 | ||
| P/B | 1.08 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 3.81 |
EPS(TTM)2.41
EY13.52%
EPS(NY)2.03
Fwd EY11.37%
FCF(TTM)2.25
FCFY12.6%
OCF(TTM)5.2
OCFY29.18%
SpS84.55
BVpS16.58
TBVpS11.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.12% | ||
| ROCE | 7.49% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 7% | ||
| OM | 3.74% | ||
| PM (TTM) | 2.18% | ||
| GM | 40.31% | ||
| FCFM | 2.66% |
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
ROICexcg growth 3Y-25.28%
ROICexcg 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 Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 89.2% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.32% | ||
| Profit Quality | 121.82% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | N/A |
F-Score6
WACC8.11%
ROIC/WACC0.7
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)-30.35%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-22.64%
EPS Next Y-25.47%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-2.53%
Revenue Next Year-5.01%
Revenue Next 2Y-3.54%
Revenue Next 3Y-4.98%
Revenue Next 5YN/A
EBIT growth 1Y-31.37%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year70.95%
EBIT Next 3Y16.13%
EBIT Next 5Y12.63%
FCF growth 1Y97.06%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y-11.81%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%