MACY'S INC (M)
US55616P1049 - Common Stock
Overall M gets a fundamental rating of 4 out of 10. We evaluated M against 32 industry peers in the Broadline Retail industry. While M is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past year M had a positive cash flow from operations.
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 has a Return On Assets (1.17%) which is comparable to the rest of the industry.
M has a Return On Equity of 4.30%. This is comparable to the rest of the industry: M outperforms 46.88% of its industry peers.
M's Return On Invested Capital of 8.93% is fine compared to the rest of the industry. M outperforms 65.63% 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 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 4.3% | ||
| ROIC | 8.93% |
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 has a Profit Margin (0.79%) which is comparable to the rest of the industry.
M's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.61%, M is in line with its industry, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Operating Margin of M has remained more or less at the same level.
The Gross Margin of M (41.04%) is comparable to the rest of the industry.
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 | 5.61% | ||
| PM (TTM) | 0.79% | ||
| GM | 41.04% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), M is creating some 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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.69 indicates that M is not a great score, but indicates only limited risk for bankruptcy at the moment.
M's Altman-Z score of 2.69 is fine compared to the rest of the industry. M outperforms 62.50% of its industry peers.
The Debt to FCF ratio of M is 9.67, which is on the high side as it means it would take M, 9.67 years of fcf income to pay off all of its debts.
M has a Debt to FCF ratio (9.67) which is in line with its industry peers.
A Debt/Equity ratio of 0.70 indicates that M is somewhat dependend on debt financing.
M's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. M is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 9.67 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.08
WACC8.29%
2.3 Liquidity
M has a Current Ratio of 1.48. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.48, M is in line with its industry, outperforming 53.13% of the companies in the same industry.
M has a Quick Ratio of 1.48. 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 (0.34) than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -19.26% in the last year.
M shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.60% yearly.
The Revenue has decreased by -2.68% in the past year.
Measured over the past years, M shows a decrease in Revenue. The Revenue has been decreasing by -1.50% on average per year.
EPS 1Y (TTM)-19.26%
EPS 3YN/A
EPS 5Y-3.6%
EPS Q2Q%-35.78%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Sales Q2Q%0.88%
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 0.51% on average per year.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.95% yearly.
EPS Next Y-20.54%
EPS Next 2Y-13.41%
EPS Next 3Y-8.29%
EPS Next 5Y0.51%
Revenue Next Year-3.99%
Revenue Next 2Y-3.52%
Revenue Next 3Y-4.95%
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
M is valuated cheaply with a Price/Earnings ratio of 4.67.
Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, M is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.22, the valuation of M can be described as very cheap.
Based on the Price/Forward Earnings ratio, M is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of M indicates a rather cheap valuation: M is cheaper than 96.88% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, M is valued a bit cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 3.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -8.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.41%
EPS Next 3Y-8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, M is a good candidate for dividend investing.
M's Dividend Yield is rather good when compared to the industry average which is at 5.32. M pays more dividend than 93.75% of the companies in the same industry.
M's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of M decreases each year by -15.16%.
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)-15.16%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
101.08% of the earnings are spent on dividend by M. This is not a sustainable payout ratio.
DP101.08%
EPS Next 2Y-13.41%
EPS Next 3Y-8.29%
MACY'S INC
NYSE:M (12/20/2024, 8:23:18 PM)
After market: 16.39 +0.15 (+0.92%)16.24
+0.39 (+2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners75.16%
Inst Owner Change0.08%
Ins Owners4.91%
Ins Owner Change0.28%
Market Cap4.50B
Analysts70.48
Price Target17.7 (8.99%)
Short Float %5.77%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Dividend Growth(5Y)-15.16%
DP101.08%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)71.38%
Min EPS beat(2)70.99%
Max EPS beat(2)71.76%
EPS beat(4)4
Avg EPS beat(4)1220.32%
Min EPS beat(4)22.32%
Max EPS beat(4)4716.2%
EPS beat(8)8
Avg EPS beat(8)646.17%
EPS beat(12)12
Avg EPS beat(12)459.7%
EPS beat(16)16
Avg EPS beat(16)433.34%
Revenue beat(2)0
Avg Revenue beat(2)-3.86%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-2.28%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)-1.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)2.55%
PT rev (1m)0.96%
PT rev (3m)0.96%
EPS NQ rev (1m)391.45%
EPS NQ rev (3m)967.73%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.67 | ||
| Fwd PE | 6.22 | ||
| P/S | 0.19 | ||
| P/FCF | 14.53 | ||
| P/OCF | 3.85 | ||
| P/B | 1.05 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 3.05 |
EPS(TTM)3.48
EY21.43%
EPS(NY)2.61
Fwd EY16.07%
FCF(TTM)1.12
FCFY6.88%
OCF(TTM)4.22
OCFY26%
SpS84.76
BVpS15.51
TBVpS10.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 4.3% | ||
| ROCE | 11.01% | ||
| ROIC | 8.93% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 10.62% | ||
| OM | 5.61% | ||
| PM (TTM) | 0.79% | ||
| GM | 41.04% | ||
| FCFM | 1.32% |
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-Score5
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 9.67 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 96.42% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 8.56 | ||
| Cash Conversion | 52.96% | ||
| Profit Quality | 167.57% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 2.69 |
F-Score5
WACC8.29%
ROIC/WACC1.08
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)-19.26%
EPS 3YN/A
EPS 5Y-3.6%
EPS Q2Q%-35.78%
EPS Next Y-20.54%
EPS Next 2Y-13.41%
EPS Next 3Y-8.29%
EPS Next 5Y0.51%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Sales Q2Q%0.88%
Revenue Next Year-3.99%
Revenue Next 2Y-3.52%
Revenue Next 3Y-4.95%
Revenue Next 5YN/A
EBIT growth 1Y8.84%
EBIT growth 3YN/A
EBIT growth 5Y-1.92%
EBIT Next Year61.19%
EBIT Next 3Y15.14%
EBIT Next 5Y11.73%
FCF growth 1Y-71.84%
FCF growth 3Y19.46%
FCF growth 5Y-17.23%
OCF growth 1Y-42.88%
OCF growth 3Y26.22%
OCF growth 5Y-5.54%