MACY'S INC (M) Fundamental Analysis & Valuation
NYSE:M • US55616P1049
Current stock price
19.54 USD
+0.46 (+2.41%)
At close:
19.46 USD
-0.08 (-0.41%)
After Hours:
This M fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. M Profitability Analysis
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 each of the past 5 years.
- 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 3.96%, 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 13.23%, M is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- M has a Return On Invested Capital (5.72%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for M is below the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 13.23% | ||
| ROIC | 5.72% |
ROA(3y)2.59%
ROA(5y)4.54%
ROE(3y)9.04%
ROE(5y)18.94%
ROIC(3y)6.64%
ROIC(5y)8.92%
1.3 Margins
- M has a Profit Margin (2.84%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of M has declined.
- M's Operating Margin of 3.91% 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.
- The Gross Margin of M (40.33%) is worse than 63.33% of its industry peers.
- In the last couple of years the Gross Margin of M has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.91% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.33% |
OM growth 3Y-15.37%
OM growth 5YN/A
PM growth 3Y-14.26%
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y4.67%
2. M Health Analysis
2.1 Basic Checks
- M has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- M has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for M has been reduced compared to 5 years ago.
- M has a better debt/assets ratio than last year.
2.2 Solvency
- M has an Altman-Z score of 2.60. 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 (2.60) which is in line with its industry peers.
- M has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as M would need 3.52 years to pay back of all of its debts.
- M has a better Debt to FCF ratio (3.52) than 70.00% of its industry peers.
- M has a Debt/Equity ratio of 0.50. This is a neutral value indicating M is somewhat dependend on debt financing.
- The Debt to Equity ratio of M (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.63
WACC9.01%
2.3 Liquidity
- M has a Current Ratio of 1.49. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of M (1.49) is comparable to the rest of the industry.
- M has a Quick Ratio of 1.49. This is a bad value and indicates that M is not financially healthy enough and could expect problems in meeting its short term obligations.
- M has a worse Quick ratio (0.50) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.5 |
3. M Growth Analysis
3.1 Past
- The earnings per share for M have decreased strongly by -11.74% in the last year.
- Measured over the past years, M shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.54% on average per year.
- The Revenue has decreased by -1.67% in the past year.
- M shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.56% yearly.
EPS 1Y (TTM)-11.74%
EPS 3Y-18.54%
EPS 5YN/A
EPS Q2Q%-7.22%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-3.85%
Revenue growth 5Y4.56%
Sales Q2Q%-1.66%
3.2 Future
- Based on estimates for the next years, M will show a small growth in Earnings Per Share. The EPS will grow by 3.93% on average per year.
- Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -5.24% on average per year.
EPS Next Y-9.51%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
EPS Next 5Y3.93%
Revenue Next Year-0.95%
Revenue Next 2Y-1.11%
Revenue Next 3Y-5.24%
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.
4. M Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.39, the valuation of M can be described as reasonable.
- 96.67% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.89. M is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 9.27, which indicates a very decent valuation of M.
- Based on the Price/Forward Earnings ratio, M is valued cheaper than 83.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of M to the average of the S&P500 Index (38.50), we can say M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, M is valued cheaply inside the industry as 100.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
5. M Dividend Analysis
5.1 Amount
- M has a Yearly Dividend Yield of 4.01%, which is a nice return.
- M's Dividend Yield is rather good when compared to the industry average which is at 0.70. M pays more dividend than 96.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
- The dividend of M is nicely growing with an annual growth rate of 14.05%!
- 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)14.05%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- M pays out 30.64% of its income as dividend. This is a sustainable payout ratio.
- M's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.64%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
M Fundamentals: All Metrics, Ratios and Statistics
19.54
+0.46 (+2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-18 2026-03-18/bmo
Earnings (Next)05-26 2026-05-26
Inst Owners92.08%
Inst Owner Change1.28%
Ins Owners0.08%
Ins Owner Change1.26%
Market Cap5.15B
Revenue(TTM)22.62B
Net Income(TTM)643.00M
Analysts69.47
Price Target19.6 (0.31%)
Short Float %11.16%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.73
Dividend Growth(5Y)14.05%
DP30.64%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-13 2026-03-13 (0.1915)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)84.71%
Min EPS beat(2)6.73%
Max EPS beat(2)162.7%
EPS beat(4)4
Avg EPS beat(4)74.42%
Min EPS beat(4)6.73%
Max EPS beat(4)162.7%
EPS beat(8)8
Avg EPS beat(8)70.12%
EPS beat(12)12
Avg EPS beat(12)450.87%
EPS beat(16)16
Avg EPS beat(16)351.94%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)1
Avg Revenue beat(12)-1.97%
Revenue beat(16)5
Avg Revenue beat(16)-0.76%
PT rev (1m)-11.24%
PT rev (3m)-11.69%
EPS NQ rev (1m)-87.22%
EPS NQ rev (3m)-86.13%
EPS NY rev (1m)-7.56%
EPS NY rev (3m)-6.58%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.23 | ||
| P/FCF | 7.47 | ||
| P/OCF | 3.6 | ||
| P/B | 1.06 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.57 |
EPS(TTM)2.33
EY11.92%
EPS(NY)2.11
Fwd EY10.79%
FCF(TTM)2.62
FCFY13.39%
OCF(TTM)5.42
OCFY27.75%
SpS85.77
BVpS18.43
TBVpS13.7
PEG (NY)N/A
PEG (5Y)N/A
Graham Number31.0813 (59.06%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 13.23% | ||
| ROCE | 7.53% | ||
| ROIC | 5.72% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 7.26% | ||
| OM | 3.91% | ||
| PM (TTM) | 2.84% | ||
| GM | 40.33% | ||
| FCFM | 3.05% |
ROA(3y)2.59%
ROA(5y)4.54%
ROE(3y)9.04%
ROE(5y)18.94%
ROIC(3y)6.64%
ROIC(5y)8.92%
ROICexc(3y)7.38%
ROICexc(5y)9.99%
ROICexgc(3y)9.14%
ROICexgc(5y)12.19%
ROCE(3y)8.74%
ROCE(5y)11.74%
ROICexgc growth 3Y-16.19%
ROICexgc growth 5YN/A
ROICexc growth 3Y-17%
ROICexc growth 5YN/A
OM growth 3Y-15.37%
OM growth 5YN/A
PM growth 3Y-14.26%
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y4.67%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 82.77% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 5.29 | ||
| Cash Conversion | 80.43% | ||
| Profit Quality | 107.31% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 2.6 |
F-Score8
WACC9.01%
ROIC/WACC0.63
Cap/Depr(3y)97.86%
Cap/Depr(5y)102.6%
Cap/Sales(3y)3.76%
Cap/Sales(5y)3.74%
Profit Quality(3y)289.62%
Profit Quality(5y)208.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.74%
EPS 3Y-18.54%
EPS 5YN/A
EPS Q2Q%-7.22%
EPS Next Y-9.51%
EPS Next 2Y-2.77%
EPS Next 3Y-1.8%
EPS Next 5Y3.93%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y-3.85%
Revenue growth 5Y4.56%
Sales Q2Q%-1.66%
Revenue Next Year-0.95%
Revenue Next 2Y-1.11%
Revenue Next 3Y-5.24%
Revenue Next 5YN/A
EBIT growth 1Y-5.66%
EBIT growth 3Y-18.63%
EBIT growth 5YN/A
EBIT Next Year104.46%
EBIT Next 3Y25.17%
EBIT Next 5Y15.96%
FCF growth 1Y74.24%
FCF growth 3Y29.19%
FCF growth 5Y30.4%
OCF growth 1Y11.89%
OCF growth 3Y-3.97%
OCF growth 5Y17.12%
MACY'S INC / M Fundamental Analysis FAQ
What is the ChartMill fundamental rating of MACY'S INC (M) stock?
ChartMill assigns a fundamental rating of 5 / 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.
Can you provide the profitability details for MACY'S INC?
MACY'S INC (M) has a profitability rating of 4 / 10.
What is the valuation of MACY'S INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MACY'S INC (M) is 8.39 and the Price/Book (PB) ratio is 1.06.
What is the earnings growth outlook for MACY'S INC?
The Earnings per Share (EPS) of MACY'S INC (M) is expected to decline by -9.51% in the next year.