MACY'S INC (M) Fundamental Analysis & Valuation

NYSE:M • US55616P1049

19.21 USD
+0.93 (+5.09%)
At close: Mar 4, 2026
19.22 USD
+0.01 (+0.05%)
After Hours: 3/4/2026, 6:40:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This M fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

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 has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

4

1. M Profitability Analysis

1.1 Basic Checks

  • In the past year M was profitable.
  • 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.
M Yearly Net Income VS EBIT VS OCF VS FCFM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • M has a Return On Assets of 2.80%. This is comparable to the rest of the industry: M outperforms 53.33% of its industry peers.
  • The Return On Equity of M (11.04%) is better than 63.33% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.20%, M is in line with its industry, outperforming 60.00% of the companies in the same industry.
  • 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 9.25%.
Industry RankSector 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
M Yearly ROA, ROE, ROICM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150

1.3 Margins

  • M's Profit Margin of 2.10% is in line compared to the rest of the industry. M outperforms 50.00% of its industry peers.
  • M's Profit Margin has improved in the last couple of years.
  • With a Operating Margin value of 4.00%, M perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of M has declined.
  • The Gross Margin of M (40.38%) is worse than 63.33% of its industry peers.
  • M's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
M Yearly Profit, Operating, Gross MarginsM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. M Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M is destroying value.
  • Compared to 1 year ago, M has more shares outstanding
  • M has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, M has an improved debt to assets ratio.
M Yearly Shares OutstandingM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
M Yearly Total Debt VS Total AssetsM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • M has an Altman-Z score of 2.37. 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.
  • M has a Altman-Z score (2.37) which is in line with its industry peers.
  • M has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as M would need 3.05 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.05, M is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
  • M has a Debt/Equity ratio of 0.56. This is a neutral value indicating M is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.56, M perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 3.05
Altman-Z 2.37
ROIC/WACC0.72
WACC8.64%
M Yearly LT Debt VS Equity VS FCFM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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 66.67% 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 RankSector Rank
Current Ratio 1.25
Quick Ratio 0.18
M Yearly Current Assets VS Current LiabilitesM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. M Growth Analysis

3.1 Past

  • The earnings per share for M have decreased strongly by -25.23% in the last year.
  • Measured over the past years, M shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.93% on average per year.
  • The Revenue has decreased by -2.83% in the past 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

  • The Earnings Per Share is expected to grow by 0.62% on average over the next years.
  • M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.90% yearly.
EPS Next Y-16.11%
EPS Next 2Y-7.5%
EPS Next 3Y-4.16%
EPS Next 5Y0.62%
Revenue Next Year-3.74%
Revenue Next 2Y-2.96%
Revenue Next 3Y-2.9%
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.
M Yearly Revenue VS EstimatesM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B 25B
M Yearly EPS VS EstimatesM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 -2 4

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Find the best growth stocksShow best growing peers

7

4. M Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.81 indicates a rather cheap valuation of M.
  • M's Price/Earnings ratio is rather cheap when compared to the industry. M is cheaper than 93.33% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of M to the average of the S&P500 Index (27.03), we can say M is valued rather cheaply.
  • A Price/Forward Earnings ratio of 8.51 indicates a reasonable valuation of M.
  • Based on the Price/Forward Earnings ratio, M is valued cheaper than 83.33% of the companies in the same industry.
  • M is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.81
Fwd PE 8.51
M Price Earnings VS Forward Price EarningsM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, M is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, M is valued cheaper than 86.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.41
EV/EBITDA 3.79
M Per share dataM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • A cheap valuation may be justified as M's earnings are expected to decrease with -4.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.5%
EPS Next 3Y-4.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. M Dividend Analysis

5.1 Amount

  • M has a Yearly Dividend Yield of 3.59%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.62, M pays a better dividend. On top of this M pays more dividend than 96.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, M pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.59%

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
M Yearly Dividends per shareM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 41.21% of the earnings are spent on dividend by M. This is a bit on the high side, but may be sustainable.
DP41.21%
EPS Next 2Y-7.5%
EPS Next 3Y-4.16%
M Yearly Income VS Free CF VS DividendM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
M Dividend Payout.M Dividend Payout, showing the Payout Ratio.M Dividend Payout.PayoutRetained Earnings

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M Fundamentals: All Metrics, Ratios and Statistics

MACY'S INC

NYSE:M (3/4/2026, 6:40:00 PM)

After market: 19.22 +0.01 (+0.05%)

19.21

+0.93 (+5.09%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)12-03
Earnings (Next)05-26
Inst Owners92.13%
Inst Owner Change-2.13%
Ins Owners0.05%
Ins Owner Change-2.59%
Market Cap5.11B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts54.74
Price Target22.08 (14.94%)
Short Float %9.5%
Short Ratio3.94
Dividend
Industry RankSector Rank
Dividend Yield 3.59%
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)-0.51%
PT rev (3m)32.32%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)11.84%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
Industry RankSector Rank
PE 7.81
Fwd PE 8.51
P/S 0.22
P/FCF 6.41
P/OCF 3.28
P/B 1.18
P/tB 1.66
EV/EBITDA 3.79
EPS(TTM)2.46
EY12.81%
EPS(NY)2.26
Fwd EY11.76%
FCF(TTM)3
FCFY15.6%
OCF(TTM)5.85
OCFY30.45%
SpS85.42
BVpS16.28
TBVpS11.58
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.02
Profitability
Industry RankSector 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 RankSector 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 2.37
F-Score6
WACC8.64%
ROIC/WACC0.72
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-16.11%
EPS Next 2Y-7.5%
EPS Next 3Y-4.16%
EPS Next 5Y0.62%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
Revenue Next Year-3.74%
Revenue Next 2Y-2.96%
Revenue Next 3Y-2.9%
Revenue Next 5YN/A
EBIT growth 1Y-18.64%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year78.51%
EBIT Next 3Y20.64%
EBIT Next 5Y12.87%
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 -16.11% in the next year.