NORDSTROM INC (JWN)
US6556641008 - Common Stock
We assign a fundamental rating of 3 out of 10 to JWN. JWN was compared to 34 industry peers in the Broadline Retail industry. While JWN is still in line with the averages on profitability rating, there are concerns on its financial health. JWN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JWN was profitable.
In the past year JWN had a positive cash flow from operations.
Of the past 5 years JWN 4 years were profitable.
Of the past 5 years JWN 4 years had a positive operating cash flow.
1.2 Ratios
JWN has a Return On Assets (1.58%) which is in line with its industry peers.
JWN has a better Return On Equity (15.68%) than 72.73% of its industry peers.
JWN has a better Return On Invested Capital (8.16%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JWN is below the industry average of 11.30%.
The 3 year average ROIC (7.35%) for JWN is below the current ROIC(8.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 15.68% | ||
| ROIC | 8.16% |
ROA(3y)2.13%
ROA(5y)0.85%
ROE(3y)26.53%
ROE(5y)-19.19%
ROIC(3y)7.35%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.91%, JWN is in line with its industry, outperforming 51.52% of the companies in the same industry.
JWN's Profit Margin has declined in the last couple of years.
The Operating Margin of JWN (3.64%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of JWN has declined.
With a Gross Margin value of 36.68%, JWN is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
JWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.64% | ||
| PM (TTM) | 0.91% | ||
| GM | 36.68% |
OM growth 3YN/A
OM growth 5Y-7.15%
PM growth 3YN/A
PM growth 5Y-23.83%
GM growth 3Y7.77%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JWN is destroying value.
The number of shares outstanding for JWN has been increased compared to 1 year ago.
The number of shares outstanding for JWN has been increased compared to 5 years ago.
JWN has a worse debt/assets ratio than last year.
2.2 Solvency
JWN has an Altman-Z score of 1.78. This is a bad value and indicates that JWN is not financially healthy and even has some risk of bankruptcy.
JWN has a worse Altman-Z score (1.78) than 60.61% of its industry peers.
JWN has a debt to FCF ratio of 55.04. This is a negative value and a sign of low solvency as JWN would need 55.04 years to pay back of all of its debts.
JWN has a Debt to FCF ratio of 55.04. This is comparable to the rest of the industry: JWN outperforms 42.42% of its industry peers.
JWN has a Debt/Equity ratio of 3.08. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.08, JWN is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | 55.04 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.86
WACC9.49%
2.3 Liquidity
JWN has a Current Ratio of 1.02. This is a normal value and indicates that JWN is financially healthy and should not expect problems in meeting its short term obligations.
JWN has a worse Current ratio (1.02) than 90.91% of its industry peers.
JWN has a Quick Ratio of 1.02. This is a bad value and indicates that JWN is not financially healthy enough and could expect problems in meeting its short term obligations.
JWN has a Quick ratio of 0.41. This is amonst the worse of the industry: JWN underperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.84% over the past year.
JWN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.10% yearly.
Looking at the last year, JWN shows a decrease in Revenue. The Revenue has decreased by -5.38% in the last year.
Measured over the past years, JWN shows a decrease in Revenue. The Revenue has been decreasing by -1.52% on average per year.
EPS 1Y (TTM)21.84%
EPS 3YN/A
EPS 5Y-10.1%
EPS growth Q2Q29.73%
Revenue 1Y (TTM)-5.38%
Revenue growth 3Y11.1%
Revenue growth 5Y-1.52%
Revenue growth Q2Q2.34%
3.2 Future
Based on estimates for the next years, JWN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.11% on average per year.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y-14.65%
EPS Next 2Y-2.46%
EPS Next 3Y5.31%
EPS Next 5Y16.11%
Revenue Next Year0.47%
Revenue Next 2Y1.14%
Revenue Next 3Y1.37%
Revenue Next 5Y1.61%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.87 indicates a reasonable valuation of JWN.
84.85% of the companies in the same industry are more expensive than JWN, based on the Price/Earnings ratio.
JWN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
The Price/Forward Earnings ratio is 10.40, which indicates a very decent valuation of JWN.
Based on the Price/Forward Earnings ratio, JWN is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, JWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JWN indicates a rather cheap valuation: JWN is cheaper than 87.88% of the companies listed in the same industry.
JWN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.06 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.46%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
JWN has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
JWN's Dividend Yield is rather good when compared to the industry average which is at 4.27. JWN pays more dividend than 93.94% of the companies in the same industry.
JWN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
The dividend of JWN decreases each year by -13.11%.
JWN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of JWN decreased recently.
Dividend Growth(5Y)-13.11%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
JWN pays out 92.48% of its income as dividend. This is not a sustainable payout ratio.
DP92.48%
EPS Next 2Y-2.46%
EPS Next 3Y5.31%
NORDSTROM INC
NYSE:JWN (5/1/2024, 7:06:00 PM)
After market: 18.82 +0.01 (+0.05%)18.81
-0.2 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 10.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 15.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.64% | ||
| PM (TTM) | 0.91% | ||
| GM | 36.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)21.84%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.38%
Revenue growth 3Y11.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y