MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - New York Stock Exchange, Inc. - US55616P1049 - Common Stock - Currency: USD
Overall M gets a fundamental rating of 4 out of 10. We evaluated M against 28 industry peers in the Broadline Retail industry. There are concerns on the financial health of M while its profitability can be described as average. M is valued quite cheap, but it does not seem to be growing. M also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
M had positive earnings in the past year.
In the past year M had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.47%, M is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
With a decent Return On Equity value of 12.54%, M is doing good in the industry, outperforming 67.86% of the companies in the same industry.
M's Return On Invested Capital of 5.73% is in line compared to the rest of the industry. M outperforms 53.57% of its industry peers.
M had an Average Return On Invested Capital over the past 3 years of 8.32%. This 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
Looking at the Profit Margin, with a value of 2.45%, M is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Profit Margin of M has grown nicely.
M has a Operating Margin (3.86%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of M has declined.
M has a worse Gross Margin (40.40%) 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), M is destroying value.
M has more shares outstanding than it did 1 year ago.
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 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.
M has a Debt to FCF ratio (10.90) which is in line with its industry peers.
M has a Debt/Equity ratio of 0.62. This is a neutral value indicating 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
WACC8.55%
2.3 Liquidity
M has a Current Ratio of 1.43. 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 1.43, M is in line with its industry, outperforming 42.86% of the companies in the same industry.
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.
With a Quick ratio value of 0.37, M is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been decreasing by -1.93% on average over the past years.
Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -3.77% in the last year.
Measured over the past years, M shows a decrease in Revenue. The Revenue has been decreasing by -1.91% on average per year.
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
The Earnings Per Share is expected to grow by 0.55% on average over the next years.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.47% yearly.
EPS Next Y-31.69%
EPS Next 2Y-16.04%
EPS Next 3Y-10.19%
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 4.69, the valuation of M can be described as very cheap.
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 27.48. M is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.38, the valuation of M can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M indicates a rather cheap valuation: M is cheaper than 89.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.52. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 6.38 |
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 92.86% of the companies listed in the same industry.
71.43% 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 | 12.65 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -10.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.04%
EPS Next 3Y-10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.73%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.99, M pays a better dividend. On top of this M pays more dividend than 96.43% of the companies listed 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 | 5.73% |
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
M pays out 34.95% of its income as dividend. This is a sustainable payout ratio.
DP34.95%
EPS Next 2Y-16.04%
EPS Next 3Y-10.19%
NYSE:M (7/18/2025, 11:58:10 AM)
11.875
-0.12 (-1.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change1.79%
Market Cap3.22B
Analysts55
Price Target13.5 (13.68%)
Short Float %9.73%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
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)8.06%
PT rev (3m)-5.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-48.24%
EPS NY rev (1m)-6.65%
EPS NY rev (3m)-16.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 6.38 | ||
| P/S | 0.14 | ||
| P/FCF | 12.65 | ||
| P/OCF | 2.97 | ||
| P/B | 0.72 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)2.53
EY21.31%
EPS(NY)1.86
Fwd EY15.67%
FCF(TTM)0.94
FCFY7.91%
OCF(TTM)4
OCFY33.65%
SpS83.96
BVpS16.39
TBVpS11.78
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
WACC8.55%
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-31.69%
EPS Next 2Y-16.04%
EPS Next 3Y-10.19%
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 3Y16.11%
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%