MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
22.05 USD
-0.09 (-0.41%)
22.05 USD
0 (0%)
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 30 industry peers in the Broadline Retail industry. M has only an average score on both its financial health and profitability. 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.
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
Looking at the Return On Assets, with a value of 2.80%, M is in line with its industry, outperforming 56.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.04%, M is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
M has a Return On Invested Capital of 6.20%. This is comparable to the rest of the industry: M outperforms 56.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for M is in line with the industry average of 9.29%.
| Industry Rank | Sector 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
1.3 Margins
M has a Profit Margin (2.10%) which is comparable to the rest of the industry.
M's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.00%, M is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of M has declined.
With a Gross Margin value of 40.38%, 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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
2.2 Solvency
M has an Altman-Z score of 2.41. 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 of 2.41. This is comparable to the rest of the industry: M outperforms 60.00% of 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.
With a decent Debt to FCF ratio value of 3.05, M is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that M is somewhat dependend on debt financing.
M's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. M is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.73
WACC8.44%
2.3 Liquidity
M has a Current Ratio of 1.25. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, M is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.18 indicates that M may have some problems paying its short term obligations.
M has a worse Quick ratio (0.18) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -25.23% in the last year.
M shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.93% yearly.
M shows a decrease in Revenue. In the last year, the revenue decreased by -2.83%.
M shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.91% yearly.
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 0.40% on average over the next years.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.04% yearly.
EPS Next Y-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
EPS Next 5Y0.4%
Revenue Next Year-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.96, which indicates a very decent valuation of M.
93.33% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
M's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of M.
M's Price/Forward Earnings ratio is rather cheap when compared to the industry. M is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of M indicates a rather cheap valuation: M is cheaper than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -4.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 3.27%.
M's Dividend Yield is rather good when compared to the industry average which is at 2.32. M pays more dividend than 93.33% of the companies in the same industry.
M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 41.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.21%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
22.05
-0.09 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change-1.28%
Ins Owners0.09%
Ins Owner Change-2.58%
Market Cap5.84B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts69.47
Price Target22.28 (1.04%)
Short Float %7.37%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)33.53%
PT rev (3m)40.56%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)11.32%
EPS NY rev (3m)12.04%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.26 | ||
| P/FCF | 7.33 | ||
| P/OCF | 3.76 | ||
| P/B | 1.35 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)2.46
EY11.16%
EPS(NY)2.25
Fwd EY10.22%
FCF(TTM)3.01
FCFY13.64%
OCF(TTM)5.87
OCFY26.62%
SpS85.74
BVpS16.34
TBVpS11.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.07
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.41 |
F-Score6
WACC8.44%
ROIC/WACC0.73
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-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
Revenue Next Year-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
Revenue Next 5YN/A
EBIT growth 1Y-18.64%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year79.1%
EBIT Next 3Y21.46%
EBIT Next 5Y12.63%
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 -16.5% in the next year.