MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - New York Stock Exchange, Inc. - US55616P1049 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to M. M was compared to 28 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 has a bad growth rate and is valued cheaply. Finally M also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year M was profitable.
M had a positive operating cash flow in the past year.
Of the past 5 years M 4 years were profitable.
Each year in the past 5 years M had a positive operating cash flow.
1.2 Ratios
M's Return On Assets of 3.47% is fine compared to the rest of the industry. M outperforms 60.71% of its industry peers.
M's Return On Equity of 12.54% is fine compared to the rest of the industry. M outperforms 67.86% of its industry peers.
M has a Return On Invested Capital of 5.73%. This is comparable to the rest of the industry: M outperforms 53.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for M is below the industry average of 11.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 12.54% | ||
| ROIC | 5.73% |
ROA(3y)3.6%
ROA(5y)-0.67%
ROE(3y)14.24%
ROE(5y)-14.45%
ROIC(3y)8.32%
ROIC(5y)N/A
1.3 Margins
M has a better Profit Margin (2.45%) than 60.71% of its industry peers.
In the last couple of years the Profit Margin of M has grown nicely.
The Operating Margin of M (3.86%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of M has declined.
The Gross Margin of M (40.40%) is worse than 60.71% of its industry peers.
M's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.86% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.4% |
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
M has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for M has been increased compared to 1 year ago.
M has less shares outstanding than it did 5 years ago.
M has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of M is 10.90, which is on the high side as it means it would take M, 10.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.90, M perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that M is somewhat dependend on debt financing.
M's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. M is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.43 indicates that M should not have too much problems paying its short term obligations.
M has a Current ratio (1.43) which is in line with its industry peers.
M has a Quick Ratio of 1.43. This is a bad value and indicates that M is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.37, M is doing worse than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
M shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.69%.
Measured over the past years, M shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.93% on average per year.
The Revenue has decreased by -3.77% in the past year.
The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)-20.69%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-40.74%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-5.1%
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 0.55% on average per year.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.47% yearly.
EPS Next Y-31.87%
EPS Next 2Y-16.15%
EPS Next 3Y-10.35%
EPS Next 5Y0.55%
Revenue Next Year-5.01%
Revenue Next 2Y-3.89%
Revenue Next 3Y-4.47%
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
Based on the Price/Earnings ratio of 4.34, the valuation of M can be described as very cheap.
Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.69, M is valued rather cheaply.
A Price/Forward Earnings ratio of 5.92 indicates a rather cheap valuation of M.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 92.86% of the companies in the same industry.
M's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 92.86% of the companies in the same industry.
M's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. M is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 2.79 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -10.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.15%
EPS Next 3Y-10.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.59%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.24, M pays a better dividend. On top of this M pays more dividend than 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
5.2 History
The dividend of M decreases each year by -14.36%.
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)-14.36%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.95% of the earnings are spent on dividend by M. This is a low number and sustainable payout ratio.
DP34.95%
EPS Next 2Y-16.15%
EPS Next 3Y-10.35%
NYSE:M (6/26/2025, 12:06:42 PM)
10.9914
-0.03 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change6.1%
Ins Owners0.18%
Ins Owner Change1.79%
Market Cap3.06B
Analysts54.74
Price Target13.5 (22.82%)
Short Float %8.21%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.36%
DP34.95%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.85%
Min EPS beat(2)8.59%
Max EPS beat(2)15.11%
EPS beat(4)4
Avg EPS beat(4)50.03%
Min EPS beat(4)8.59%
Max EPS beat(4)105.43%
EPS beat(8)8
Avg EPS beat(8)637.43%
EPS beat(12)12
Avg EPS beat(12)442.79%
EPS beat(16)16
Avg EPS beat(16)388.43%
Revenue beat(2)1
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.11%
Revenue beat(16)8
Avg Revenue beat(16)0.83%
PT rev (1m)5.06%
PT rev (3m)-20.18%
EPS NQ rev (1m)-48.24%
EPS NQ rev (3m)-47.82%
EPS NY rev (1m)-6.89%
EPS NY rev (3m)-24.54%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 5.92 | ||
| P/S | 0.13 | ||
| P/FCF | 12.01 | ||
| P/OCF | 2.82 | ||
| P/B | 0.69 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 2.79 |
EPS(TTM)2.53
EY23.02%
EPS(NY)1.86
Fwd EY16.89%
FCF(TTM)0.92
FCFY8.33%
OCF(TTM)3.89
OCFY35.44%
SpS81.84
BVpS15.98
TBVpS11.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 12.54% | ||
| ROCE | 7.51% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 7.04% | ||
| OM | 3.86% | ||
| PM (TTM) | 2.45% | ||
| GM | 40.4% | ||
| FCFM | 1.12% |
ROA(3y)3.6%
ROA(5y)-0.67%
ROE(3y)14.24%
ROE(5y)-14.45%
ROIC(3y)8.32%
ROIC(5y)N/A
ROICexc(3y)9.11%
ROICexc(5y)N/A
ROICexgc(3y)11.15%
ROICexgc(5y)N/A
ROCE(3y)10.9%
ROCE(5y)N/A
ROICexcg growth 3Y-25.28%
ROICexcg 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-Score7
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 10.9 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 93.89% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.54% | ||
| Profit Quality | 45.7% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | N/A |
F-Score7
WACC8.56%
ROIC/WACC0.67
Cap/Depr(3y)120.64%
Cap/Depr(5y)95.76%
Cap/Sales(3y)4.37%
Cap/Sales(5y)3.61%
Profit Quality(3y)262.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.69%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-40.74%
EPS Next Y-31.87%
EPS Next 2Y-16.15%
EPS Next 3Y-10.35%
EPS Next 5Y0.55%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-5.1%
Revenue Next Year-5.01%
Revenue Next 2Y-3.89%
Revenue Next 3Y-4.47%
Revenue Next 5YN/A
EBIT growth 1Y-30.07%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year72.42%
EBIT Next 3Y15.86%
EBIT Next 5Y12.64%
FCF growth 1Y79.58%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y-26.29%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%