MACY'S INC (M) Stock Fundamental Analysis
USA - NYSE:M - US55616P1049 - Common Stock
19.49 USD
-0.05 (-0.26%)
19.44 USD
-0.05 (-0.26%)
M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. M has a medium profitability rating, but doesn't score so well on its financial health evaluation. M is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year M was profitable.
M had a positive operating cash flow in the past year.
M had positive earnings in 4 of the past 5 years.
M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
M's Return On Assets of 3.18% is in line compared to the rest of the industry. M outperforms 53.33% of its industry peers.
With a decent Return On Equity value of 11.12%, M is doing good in the industry, outperforming 63.33% of the companies in the same industry.
M's Return On Invested Capital of 5.71% is in line compared to the rest of the industry. M outperforms 43.33% of its industry peers.
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
Looking at the Profit Margin, with a value of 2.18%, 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.
M's Operating Margin of 3.74% is in line compared to the rest of the industry. M outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of M has declined.
With a Gross Margin value of 40.31%, 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 | 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) below the Cost of Capital (WACC), M 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
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 70.00% 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.
M has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: M underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.38 indicates that M should not have too much problems paying its short term obligations.
M has a Current ratio of 1.38. This is in the lower half of the industry: M underperforms 63.33% of its industry peers.
A Quick Ratio of 0.35 indicates that M may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, M is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| 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%.
M shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.93% yearly.
The Revenue has decreased by -3.43% in the past year.
Measured over the past years, M shows a decrease in Revenue. The Revenue has been decreasing by -1.91% on average per year.
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
M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.45% yearly.
EPS Next Y-25.17%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
EPS Next 5Y0.4%
Revenue Next Year-5.1%
Revenue Next 2Y-3.68%
Revenue Next 3Y-3.45%
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
Based on the Price/Earnings ratio of 8.09, the valuation of M can be described as reasonable.
93.33% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.11, M is valued rather cheaply.
The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of M.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 86.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of M to the average of the S&P500 Index (22.55), we can say M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, M is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 4.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -8.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 3.73%.
M's Dividend Yield is rather good when compared to the industry average which is at 9.74. M pays more dividend than 96.67% of the companies in the same industry.
M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 39.60% of its income as dividend. This is a sustainable payout ratio.
DP39.6%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
19.49
-0.05 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change0.45%
Ins Owners0.09%
Ins Owner Change-1.93%
Market Cap5.23B
Revenue(TTM)22.70B
Net Income(TTM)495.00M
Analysts69
Price Target16.57 (-14.98%)
Short Float %8.45%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)4.54%
PT rev (3m)22.73%
EPS NQ rev (1m)3.29%
EPS NQ rev (3m)25.43%
EPS NY rev (1m)0.4%
EPS NY rev (3m)9.55%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.23 | ||
| P/FCF | 8.68 | ||
| P/OCF | 3.75 | ||
| P/B | 1.18 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)2.41
EY12.37%
EPS(NY)2.04
Fwd EY10.46%
FCF(TTM)2.25
FCFY11.52%
OCF(TTM)5.2
OCFY26.68%
SpS84.55
BVpS16.58
TBVpS11.92
PEG (NY)N/A
PEG (5Y)N/A
Graham Number29.98
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
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 Turnover1.46
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
WACC8.24%
ROIC/WACC0.69
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-25.17%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
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-5.1%
Revenue Next 2Y-3.68%
Revenue Next 3Y-3.45%
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%
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.
Can you provide the valuation status for MACY'S INC?
ChartMill assigns a valuation rating of 7 / 10 to MACY'S INC (M). This can be considered as Undervalued.
How profitable is MACY'S INC (M) stock?
MACY'S INC (M) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MACY'S INC (M) stock?
The Price/Earnings (PE) ratio for MACY'S INC (M) is 8.09 and the Price/Book (PB) ratio is 1.18.
Can you provide the dividend sustainability for M stock?
The dividend rating of MACY'S INC (M) is 6 / 10 and the dividend payout ratio is 39.6%.