MACY'S INC (M) Stock Fundamental Analysis
USA - NYSE:M - US55616P1049 - Common Stock
17.505 USD
+0.06 (+0.37%)
We assign a fundamental rating of 4 out of 10 to M. M was compared to 28 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. 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
With a Return On Assets value of 3.18%, M perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
M has a better Return On Equity (11.12%) than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.71%, M is in line with its industry, outperforming 46.43% 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 below the industry average of 11.01%.
| 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 (3.74%) which is in line with 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: 60.71% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M is destroying value.
M has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, M has less shares outstanding
The debt/assets ratio for M has been reduced compared to a year ago.
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.
With a decent Debt to FCF ratio value of 4.35, M is doing good in the industry, outperforming 60.71% of the companies in the same industry.
M has a Debt/Equity ratio of 0.55. This is a neutral value indicating M is somewhat dependend on debt financing.
M's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. M is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.38 indicates that M should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, M is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
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.
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
The Earnings Per Share is expected to grow by 0.55% on average over the next years.
The Revenue is expected to decrease by -3.97% on average over the next years.
EPS Next Y-30.59%
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
EPS Next 5Y0.55%
Revenue Next Year-5.38%
Revenue Next 2Y-3.77%
Revenue Next 3Y-3.97%
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.
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
With a Price/Earnings ratio of 7.26, the valuation of M can be described as very cheap.
Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.27. M is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.35, the valuation of M can be described as reasonable.
92.86% of the companies in the same industry are more expensive than M, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than M, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, M is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -11.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.95, M pays a better dividend. On top of this M pays more dividend than 92.86% of the companies listed in the same industry.
M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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
39.60% of the earnings are spent on dividend by M. This is a low number and sustainable payout ratio.
DP39.6%
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
NYSE:M (9/16/2025, 3:49:09 PM)
17.505
+0.06 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.38%
Inst Owner Change1.18%
Ins Owners0.18%
Ins Owner Change0.62%
Market Cap4.70B
Analysts55
Price Target15.85 (-9.45%)
Short Float %9.9%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)17.4%
PT rev (3m)26.86%
EPS NQ rev (1m)18.37%
EPS NQ rev (3m)-137.99%
EPS NY rev (1m)1.61%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 9.35 | ||
| P/S | 0.21 | ||
| P/FCF | 7.79 | ||
| P/OCF | 3.37 | ||
| P/B | 1.06 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)2.41
EY13.77%
EPS(NY)1.87
Fwd EY10.69%
FCF(TTM)2.25
FCFY12.83%
OCF(TTM)5.2
OCFY29.7%
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
WACC8.55%
ROIC/WACC0.67
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-30.59%
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
EPS Next 5Y0.55%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-2.53%
Revenue Next Year-5.38%
Revenue Next 2Y-3.77%
Revenue Next 3Y-3.97%
Revenue Next 5YN/A
EBIT growth 1Y-31.37%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year65.75%
EBIT Next 3Y18.6%
EBIT Next 5Y12.64%
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%