MACY'S INC (M) Stock Fundamental Analysis
USA - NYSE:M - US55616P1049 - Common Stock
19.4452 USD
+0.73 (+3.87%)
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 30 industry peers in the Broadline Retail industry. M has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
M had positive earnings in 4 of the past 5 years.
Each year in the past 5 years M had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.18%, M perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.12%, M is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
M has a Return On Invested Capital (5.71%) which is comparable to the rest of the industry.
M had an Average Return On Invested Capital over the past 3 years of 8.23%. This is below the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.12% | ||
| ROIC | 5.71% |
ROA(3y)3.54%
ROA(5y)-0.71%
ROE(3y)13.99%
ROE(5y)-14.6%
ROIC(3y)8.23%
ROIC(5y)N/A
1.3 Margins
M has a Profit Margin (2.18%) which is in line with its industry peers.
M's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.74%, M is in line with its industry, outperforming 50.00% of the companies in the same industry.
M's Operating Margin has declined in the last couple of years.
M's Gross Margin of 40.31% is on the low side compared to the rest of the industry. M is outperformed by 63.33% 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 | 3.74% | ||
| PM (TTM) | 2.18% | ||
| GM | 40.31% |
OM growth 3Y-23.39%
OM growth 5Y-2.37%
PM growth 3Y-23.51%
PM growth 5Y2.59%
GM growth 3Y-0.48%
GM growth 5Y0.08%
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.
Compared to 1 year ago, M has more shares outstanding
M has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, M has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of M is 4.35, which is a neutral value as it means it would take M, 4.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.35, M is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that M is somewhat dependend on debt financing.
The Debt to Equity ratio of M (0.55) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.38 indicates that M should not have too much problems paying its short term obligations.
M has a worse Current ratio (1.38) than 63.33% of its industry peers.
A Quick Ratio of 0.35 indicates that M may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, M is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -30.35% in the last year.
The Earnings Per Share has been decreasing by -1.93% on average over the past years.
M shows a decrease in Revenue. In the last year, the revenue decreased by -3.43%.
The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)-30.35%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-22.64%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-2.53%
3.2 Future
M is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.40% yearly.
Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -3.45% on average per year.
EPS Next Y-25.17%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
EPS Next 5Y0.4%
Revenue Next Year-5.1%
Revenue Next 2Y-3.68%
Revenue Next 3Y-3.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.07, the valuation of M can be described as very reasonable.
Based on the Price/Earnings ratio, M is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. M is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.54 indicates a reasonable valuation of M.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 93.33% of the companies in the same industry.
86.67% 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 | 8.66 | ||
| EV/EBITDA | 3.93 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -8.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 9.37, M pays a better dividend. On top of this M pays more dividend than 96.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
5.2 History
The dividend of M decreases each year by -14.37%.
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)-14.37%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
M pays out 39.60% of its income as dividend. This is a sustainable payout ratio.
DP39.6%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
NYSE:M (10/27/2025, 3:43:09 PM)
19.4452
+0.73 (+3.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change0.54%
Ins Owners0.09%
Ins Owner Change-1.93%
Market Cap5.22B
Revenue(TTM)22.70B
Net Income(TTM)495.00M
Analysts69
Price Target16.22 (-16.59%)
Short Float %8.45%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.37%
DP39.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)64.12%
Min EPS beat(2)8.59%
Max EPS beat(2)119.65%
EPS beat(4)4
Avg EPS beat(4)62.19%
Min EPS beat(4)8.59%
Max EPS beat(4)119.65%
EPS beat(8)8
Avg EPS beat(8)641.26%
EPS beat(12)12
Avg EPS beat(12)451.51%
EPS beat(16)16
Avg EPS beat(16)360.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.05%
PT rev (1m)2.34%
PT rev (3m)20.15%
EPS NQ rev (1m)1.69%
EPS NQ rev (3m)23.17%
EPS NY rev (1m)0.4%
EPS NY rev (3m)9.55%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 9.54 | ||
| P/S | 0.23 | ||
| P/FCF | 8.66 | ||
| P/OCF | 3.74 | ||
| P/B | 1.17 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 3.93 |
EPS(TTM)2.41
EY12.39%
EPS(NY)2.04
Fwd EY10.48%
FCF(TTM)2.25
FCFY11.55%
OCF(TTM)5.2
OCFY26.74%
SpS84.55
BVpS16.58
TBVpS11.92
PEG (NY)N/A
PEG (5Y)N/A
Graham Number29.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 11.12% | ||
| ROCE | 7.49% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 7% | ||
| OM | 3.74% | ||
| PM (TTM) | 2.18% | ||
| GM | 40.31% | ||
| FCFM | 2.66% |
ROA(3y)3.54%
ROA(5y)-0.71%
ROE(3y)13.99%
ROE(5y)-14.6%
ROIC(3y)8.23%
ROIC(5y)N/A
ROICexc(3y)9.01%
ROICexc(5y)N/A
ROICexgc(3y)11.04%
ROICexgc(5y)N/A
ROCE(3y)10.79%
ROCE(5y)N/A
ROICexgc growth 3Y-25.28%
ROICexgc growth 5Y-1.61%
ROICexc growth 3Y-26.03%
ROICexc growth 5Y2.34%
OM growth 3Y-23.39%
OM growth 5Y-2.37%
PM growth 3Y-23.51%
PM growth 5Y2.59%
GM growth 3Y-0.48%
GM growth 5Y0.08%
F-Score6
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 89.2% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.32% | ||
| Profit Quality | 121.82% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | N/A |
F-Score6
WACC8.19%
ROIC/WACC0.7
Cap/Depr(3y)120.64%
Cap/Depr(5y)95.76%
Cap/Sales(3y)4.36%
Cap/Sales(5y)3.6%
Profit Quality(3y)263.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.35%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-22.64%
EPS Next Y-25.17%
EPS Next 2Y-12.13%
EPS Next 3Y-8.87%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-2.53%
Revenue Next Year-5.1%
Revenue Next 2Y-3.68%
Revenue Next 3Y-3.45%
Revenue Next 5YN/A
EBIT growth 1Y-31.37%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year70.95%
EBIT Next 3Y16.13%
EBIT Next 5Y12.63%
FCF growth 1Y97.06%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y-11.81%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%
MACY'S INC / M FAQ
What is the ChartMill fundamental rating of MACY'S INC (M) stock?
ChartMill assigns a fundamental rating of 4 / 10 to M.
Can you provide the valuation status for MACY'S INC?
ChartMill assigns a valuation rating of 7 / 10 to MACY'S INC (M). This can be considered as Undervalued.
How profitable is MACY'S INC (M) stock?
MACY'S INC (M) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MACY'S INC (M) stock?
The Price/Earnings (PE) ratio for MACY'S INC (M) is 8.07 and the Price/Book (PB) ratio is 1.17.
Can you provide the dividend sustainability for M stock?
The dividend rating of MACY'S INC (M) is 6 / 10 and the dividend payout ratio is 39.6%.