MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - New York Stock Exchange, Inc. - US55616P1049 - Common Stock - Currency: USD
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 32 industry peers in the Broadline Retail industry. There are concerns on the financial health of M while its profitability can be described as average. M has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
M had positive earnings in the past year.
M had a positive operating cash flow in the past year.
Of the past 5 years M 4 years were profitable.
In the past 5 years M always reported a positive cash flow from operatings.
1.2 Ratios
M's Return On Assets of 0.98% is in line compared to the rest of the industry. M outperforms 45.16% of its industry peers.
With a Return On Equity value of 4.10%, M perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
M's Return On Invested Capital of 8.43% is fine compared to the rest of the industry. M outperforms 67.74% of its industry peers.
M had an Average Return On Invested Capital over the past 3 years of 11.96%. This is in line with the industry average of 11.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 4.1% | ||
| ROIC | 8.43% |
ROA(3y)5.25%
ROA(5y)-0.77%
ROE(3y)23.62%
ROE(5y)-14.96%
ROIC(3y)11.96%
ROIC(5y)N/A
1.3 Margins
M's Profit Margin of 0.73% is in line compared to the rest of the industry. M outperforms 45.16% of its industry peers.
M's Profit Margin has declined in the last couple of years.
M has a Operating Margin (5.12%) which is comparable to the rest of the industry.
M's Operating Margin has been stable in the last couple of years.
M has a Gross Margin of 40.86%. This is comparable to the rest of the industry: M outperforms 48.39% 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 | 5.12% | ||
| PM (TTM) | 0.73% | ||
| GM | 40.86% |
OM growth 3YN/A
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5Y-36.63%
GM growth 3Y8.26%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so M is still creating some value.
Compared to 1 year ago, M has more shares outstanding
M has less shares outstanding than it did 5 years ago.
M has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 2.37, M is in line with its industry, outperforming 58.06% of the companies in the same industry.
The Debt to FCF ratio of M is 12.79, which is on the high side as it means it would take M, 12.79 years of fcf income to pay off all of its debts.
M's Debt to FCF ratio of 12.79 is in line compared to the rest of the industry. M outperforms 45.16% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that M is somewhat dependend on debt financing.
M has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: M underperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 12.79 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.99
WACC8.5%
2.3 Liquidity
M has a Current Ratio of 1.26. 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 Current ratio of 1.26. This is comparable to the rest of the industry: M outperforms 51.61% of its industry peers.
A Quick Ratio of 0.17 indicates that M may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.17, M is doing worse than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
M shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.07%, which is quite impressive.
Measured over the past years, M shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.60% on average per year.
The Revenue has decreased by -2.68% in the past year.
The Revenue has been decreasing by -1.50% on average over the past years.
EPS 1Y (TTM)20.07%
EPS 3YN/A
EPS 5Y-3.6%
EPS Q2Q%-80.95%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Sales Q2Q%-2.43%
3.2 Future
M is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.25% yearly.
The Revenue is expected to decrease by -2.81% on average over the next years.
EPS Next Y-29.68%
EPS Next 2Y-17.2%
EPS Next 3Y-9.66%
EPS Next 5Y-0.25%
Revenue Next Year-3.17%
Revenue Next 2Y-3.05%
Revenue Next 3Y-2.81%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.51, which indicates a rather cheap valuation of M.
93.55% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
M is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.22, which indicates a rather cheap valuation of M.
90.32% of the companies in the same industry are more expensive than M, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 96.77% of the companies in the same industry.
64.52% of the companies in the same industry are more expensive than M, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 3.23 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -9.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.2%
EPS Next 3Y-9.66%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 5.36, M pays a better dividend. On top of this M pays more dividend than 93.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of M decreases each year by -15.16%.
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)-15.16%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
M pays out 111.76% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of M has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP111.76%
EPS Next 2Y-17.2%
EPS Next 3Y-9.66%
MACY'S INC
NYSE:M (2/5/2025, 3:29:09 PM)
14.85
-0.23 (-1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.74%
Inst Owner Change0.01%
Ins Owners0.24%
Ins Owner Change-0.03%
Market Cap4.12B
Analysts70.48
Price Target16.92 (13.94%)
Short Float %6.05%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend0.66
Dividend Growth(5Y)-15.16%
DP111.76%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88.21%
Min EPS beat(2)70.99%
Max EPS beat(2)105.43%
EPS beat(4)4
Avg EPS beat(4)67.63%
Min EPS beat(4)22.32%
Max EPS beat(4)105.43%
EPS beat(8)8
Avg EPS beat(8)638.02%
EPS beat(12)12
Avg EPS beat(12)444.89%
EPS beat(16)16
Avg EPS beat(16)435.16%
Revenue beat(2)0
Avg Revenue beat(2)-4.06%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)-2.28%
Revenue beat(8)1
Avg Revenue beat(8)-2.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)9
Avg Revenue beat(16)1.99%
PT rev (1m)-3.91%
PT rev (3m)-3.49%
EPS NQ rev (1m)-17.87%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)-3.43%
EPS NY rev (3m)-12.09%
Revenue NQ rev (1m)2.01%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 6.22 | ||
| P/S | 0.18 | ||
| P/FCF | 18.41 | ||
| P/OCF | 3.69 | ||
| P/B | 0.99 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)3.29
EY22.15%
EPS(NY)2.39
Fwd EY16.07%
FCF(TTM)0.81
FCFY5.43%
OCF(TTM)4.02
OCFY27.09%
SpS84.19
BVpS14.94
TBVpS10.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 4.1% | ||
| ROCE | 10.39% | ||
| ROIC | 8.43% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 9.76% | ||
| OM | 5.12% | ||
| PM (TTM) | 0.73% | ||
| GM | 40.86% | ||
| FCFM | 0.96% |
ROA(3y)5.25%
ROA(5y)-0.77%
ROE(3y)23.62%
ROE(5y)-14.96%
ROIC(3y)11.96%
ROIC(5y)N/A
ROICexc(3y)13.38%
ROICexc(5y)N/A
ROICexgc(3y)16.21%
ROICexgc(5y)N/A
ROCE(3y)14.74%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.72%
ROICexc growth 3YN/A
ROICexc growth 5Y1.51%
OM growth 3YN/A
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5Y-36.63%
GM growth 3Y8.26%
GM growth 5Y-0.07%
F-Score7
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 12.79 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 100.45% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | 7.67 | ||
| Cash Conversion | 53.55% | ||
| Profit Quality | 131.76% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 2.37 |
F-Score7
WACC8.5%
ROIC/WACC0.99
Cap/Depr(3y)110.04%
Cap/Depr(5y)99.33%
Cap/Sales(3y)3.88%
Cap/Sales(5y)3.76%
Profit Quality(3y)157.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.07%
EPS 3YN/A
EPS 5Y-3.6%
EPS Q2Q%-80.95%
EPS Next Y-29.68%
EPS Next 2Y-17.2%
EPS Next 3Y-9.66%
EPS Next 5Y-0.25%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Sales Q2Q%-2.43%
Revenue Next Year-3.17%
Revenue Next 2Y-3.05%
Revenue Next 3Y-2.81%
Revenue Next 5YN/A
EBIT growth 1Y5.74%
EBIT growth 3YN/A
EBIT growth 5Y-1.92%
EBIT Next Year56.21%
EBIT Next 3Y14.22%
EBIT Next 5Y11.09%
FCF growth 1Y-80.76%
FCF growth 3Y19.46%
FCF growth 5Y-17.23%
OCF growth 1Y-52.65%
OCF growth 3Y26.22%
OCF growth 5Y-5.54%