NORDSTROM INC (JWN) Stock Fundamental Analysis
USA - NYSE:JWN - US6556641008 - Common Stock
24.66 USD
+0.02 (+0.08%)
24.6601 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to JWN. JWN was compared to 28 industry peers in the Broadline Retail industry. There are concerns on the financial health of JWN while its profitability can be described as average. JWN has a decent growth rate and is not valued too expensively.
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.
JWN had positive earnings in 4 of the past 5 years.
JWN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.29%, JWN is doing good in the industry, outperforming 61.29% of the companies in the same industry.
The Return On Equity of JWN (25.88%) is better than 87.10% of its industry peers.
JWN has a Return On Invested Capital of 7.75%. This is in the better half of the industry: JWN outperforms 64.52% of its industry peers.
JWN had an Average Return On Invested Capital over the past 3 years of 7.32%. This is below the industry average of 11.01%.
The 3 year average ROIC (7.32%) for JWN is below the current ROIC(7.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 25.88% | ||
| ROIC | 7.75% |
ROA(3y)2.56%
ROA(5y)0.49%
ROE(3y)24.91%
ROE(5y)-24.17%
ROIC(3y)7.32%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 1.96%, JWN is doing good in the industry, outperforming 61.29% of the companies in the same industry.
In the last couple of years the Profit Margin of JWN has declined.
Looking at the Operating Margin, with a value of 3.66%, JWN is in line with its industry, outperforming 51.61% of the companies in the same industry.
In the last couple of years the Operating Margin of JWN has declined.
Looking at the Gross Margin, with a value of 37.43%, JWN is doing worse than 64.52% of the companies in the same industry.
JWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.66% | ||
| PM (TTM) | 1.96% | ||
| GM | 37.43% |
OM growth 3Y-0.3%
OM growth 5Y-8.18%
PM growth 3Y17.61%
PM growth 5Y-9.33%
GM growth 3Y0.55%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), JWN is destroying value.
JWN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for JWN has been increased compared to 5 years ago.
JWN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that JWN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.90, JWN is in line with its industry, outperforming 51.61% of the companies in the same industry.
JWN has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as JWN would need 3.49 years to pay back of all of its debts.
JWN has a Debt to FCF ratio (3.49) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.30 is on the high side and indicates that JWN has dependencies on debt financing.
JWN's Debt to Equity ratio of 2.30 is on the low side compared to the rest of the industry. JWN is outperformed by 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.78
WACC9.92%
2.3 Liquidity
JWN has a Current Ratio of 1.19. This is a normal value and indicates that JWN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of JWN (1.19) is worse than 74.19% of its industry peers.
A Quick Ratio of 0.51 indicates that JWN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, JWN is doing worse than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
JWN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.42%.
The Earnings Per Share has been decreasing by -8.54% on average over the past years.
JWN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.21%.
JWN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.66% yearly.
EPS 1Y (TTM)1.42%
EPS 3Y26.58%
EPS 5Y-8.54%
EPS Q2Q%14.58%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.66%
Sales Q2Q%-2.19%
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 15.79% on average per year.
JWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y-3.7%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
EPS Next 5Y15.79%
Revenue Next Year2.01%
Revenue Next 2Y1.73%
Revenue Next 3Y1.3%
Revenue Next 5Y2.12%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.47, the valuation of JWN can be described as reasonable.
Based on the Price/Earnings ratio, JWN is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of JWN to the average of the S&P500 Index (27.27), we can say JWN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of JWN can be described as reasonable.
Based on the Price/Forward Earnings ratio, JWN is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of JWN to the average of the S&P500 Index (22.77), we can say JWN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JWN is valued cheaper than 83.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JWN indicates a rather cheap valuation: JWN is cheaper than 90.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | 4.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, JWN has a reasonable but not impressive dividend return.
JWN's Dividend Yield is rather good when compared to the industry average which is at 7.95. JWN pays more dividend than 83.87% of the companies in the same industry.
JWN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of JWN decreases each year by -12.34%.
JWN has paid a dividend for at least 10 years, which is a reliable track record.
JWN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
42.03% of the earnings are spent on dividend by JWN. This is a bit on the high side, but may be sustainable.
DP42.03%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
24.66
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners52.71%
Inst Owner Change-80.84%
Ins Owners25.6%
Ins Owner Change-111.14%
Market Cap4.12B
Analysts50.48
Price Target24.23 (-1.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend0.76
Dividend Growth(5Y)-12.34%
DP42.03%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.31%
Min EPS beat(2)18.42%
Max EPS beat(2)54.21%
EPS beat(4)3
Avg EPS beat(4)-27.67%
Min EPS beat(4)-216.28%
Max EPS beat(4)54.21%
EPS beat(8)7
Avg EPS beat(8)29.54%
EPS beat(12)11
Avg EPS beat(12)31.34%
EPS beat(16)13
Avg EPS beat(16)22.71%
Revenue beat(2)1
Avg Revenue beat(2)0.98%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)2.52%
Revenue beat(4)2
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)3.48%
Revenue beat(8)5
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)1.15%
Revenue beat(16)12
Avg Revenue beat(16)1.72%
PT rev (1m)0%
PT rev (3m)1.84%
EPS NQ rev (1m)-72.24%
EPS NQ rev (3m)-71.92%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.71%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.27 | ||
| P/FCF | 5.49 | ||
| P/OCF | 3.25 | ||
| P/B | 3.62 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 4.95 |
EPS(TTM)2.15
EY8.72%
EPS(NY)2.07
Fwd EY8.4%
FCF(TTM)4.49
FCFY18.21%
OCF(TTM)7.58
OCFY30.72%
SpS89.8
BVpS6.82
TBVpS5.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 25.88% | ||
| ROCE | 9.34% | ||
| ROIC | 7.75% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.92% | ||
| OM | 3.66% | ||
| PM (TTM) | 1.96% | ||
| GM | 37.43% | ||
| FCFM | 5% |
ROA(3y)2.56%
ROA(5y)0.49%
ROE(3y)24.91%
ROE(5y)-24.17%
ROIC(3y)7.32%
ROIC(5y)N/A
ROICexc(3y)8.48%
ROICexc(5y)N/A
ROICexgc(3y)8.94%
ROICexgc(5y)N/A
ROCE(3y)8.82%
ROCE(5y)N/A
ROICexcg growth 3Y2.96%
ROICexcg growth 5Y-6.81%
ROICexc growth 3Y2.82%
ROICexc growth 5Y-6.9%
OM growth 3Y-0.3%
OM growth 5Y-8.18%
PM growth 3Y17.61%
PM growth 5Y-9.33%
GM growth 3Y0.55%
GM growth 5Y0.77%
F-Score7
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.3 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 85.57% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 4.36 | ||
| Cash Conversion | 109.98% | ||
| Profit Quality | 254.58% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.9 |
F-Score7
WACC9.92%
ROIC/WACC0.78
Cap/Depr(3y)86.99%
Cap/Depr(5y)80.06%
Cap/Sales(3y)3.45%
Cap/Sales(5y)3.47%
Profit Quality(3y)162.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.42%
EPS 3Y26.58%
EPS 5Y-8.54%
EPS Q2Q%14.58%
EPS Next Y-3.7%
EPS Next 2Y-4.07%
EPS Next 3Y3.55%
EPS Next 5Y15.79%
Revenue 1Y (TTM)2.21%
Revenue growth 3Y0.51%
Revenue growth 5Y-0.66%
Sales Q2Q%-2.19%
Revenue Next Year2.01%
Revenue Next 2Y1.73%
Revenue Next 3Y1.3%
Revenue Next 5Y2.12%
EBIT growth 1Y2.62%
EBIT growth 3Y0.2%
EBIT growth 5Y-8.79%
EBIT Next Year115.06%
EBIT Next 3Y36.23%
EBIT Next 5Y23.63%
FCF growth 1Y1344.23%
FCF growth 3Y55.69%
FCF growth 5Y20.06%
OCF growth 1Y104.03%
OCF growth 3Y21.58%
OCF growth 5Y0.5%