MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - New York Stock Exchange, Inc. - US55616P1049 - Common Stock - Currency: USD
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 31 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 cheap, but on the other hand it scores bad on growth. 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.
M had positive earnings in 4 of the past 5 years.
M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
M has a Return On Assets of 3.55%. This is in the better half of the industry: M outperforms 64.52% of its industry peers.
The Return On Equity of M (12.79%) is better than 67.74% of its industry peers.
M has a Return On Invested Capital of 6.02%. This is comparable to the rest of the industry: M outperforms 51.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for M is below the industry average of 11.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 12.79% | ||
| ROIC | 6.02% |
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's Profit Margin of 2.53% is fine compared to the rest of the industry. M outperforms 64.52% of its industry peers.
M's Profit Margin has improved in the last couple of years.
M has a Operating Margin (4.07%) which is in line with its industry peers.
M's Operating Margin has declined in the last couple of years.
M has a Gross Margin (40.28%) which is in line with its industry peers.
M's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 40.28% |
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.
Compared to 1 year ago, M has more shares outstanding
The number of shares outstanding for M has been reduced compared to 5 years ago.
The debt/assets ratio for M has been reduced compared to a year ago.
2.2 Solvency
M has an Altman-Z score of 2.46. This is not the best score and indicates that M is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, M is in line with its industry, outperforming 58.06% of the companies in the same industry.
The Debt to FCF ratio of M is 7.02, which is on the high side as it means it would take M, 7.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of M (7.02) is comparable to the rest of the industry.
M has a Debt/Equity ratio of 0.61. This is a neutral value indicating M is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, M is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.62
WACC9.74%
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.
A Quick Ratio of 0.44 indicates that M may have some problems paying its short term obligations.
M's Quick ratio of 0.44 is on the low side compared to the rest of the industry. M is outperformed by 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -24.14% in the last year.
M shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.93% yearly.
M shows a decrease in Revenue. In the last year, the revenue decreased by -3.60%.
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)-24.14%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-26.53%
Revenue 1Y (TTM)-3.6%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-4.33%
3.2 Future
The Earnings Per Share is expected to grow by 3.13% on average over the next years.
Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -4.04% on average per year.
EPS Next Y-26.83%
EPS Next 2Y-13.88%
EPS Next 3Y-9.79%
EPS Next 5Y3.13%
Revenue Next Year-5.59%
Revenue Next 2Y-4.37%
Revenue Next 3Y-4.04%
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
Based on the Price/Earnings ratio of 4.50, the valuation of M can be described as very cheap.
M's Price/Earnings ratio is rather cheap when compared to the industry. M is cheaper than 100.00% of the companies in the same industry.
M's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
Based on the Price/Forward Earnings ratio of 6.15, the valuation of M can be described as very cheap.
Based on the Price/Forward Earnings ratio, M is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
M is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 93.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of M indicates a somewhat cheap valuation: M is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 2.63 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -9.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.88%
EPS Next 3Y-9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.11%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.21, M pays a better dividend. On top of this M pays more dividend than 93.55% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
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 32.99% of its income as dividend. This is a sustainable payout ratio.
DP32.99%
EPS Next 2Y-13.88%
EPS Next 3Y-9.79%
11.89
-0.05 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners84.57%
Inst Owner Change6.1%
Ins Owners0.23%
Ins Owner Change1.79%
Market Cap3.31B
Analysts54.44
Price Target12.85 (8.07%)
Short Float %7.37%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.36%
DP32.99%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.27%
Min EPS beat(2)15.11%
Max EPS beat(2)105.43%
EPS beat(4)4
Avg EPS beat(4)65.82%
Min EPS beat(4)15.11%
Max EPS beat(4)105.43%
EPS beat(8)8
Avg EPS beat(8)639.09%
EPS beat(12)12
Avg EPS beat(12)444.45%
EPS beat(16)16
Avg EPS beat(16)400.04%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)-2.28%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.93%
Revenue beat(16)8
Avg Revenue beat(16)1.4%
PT rev (1m)-2.24%
PT rev (3m)-24.02%
EPS NQ rev (1m)5.72%
EPS NQ rev (3m)-48.67%
EPS NY rev (1m)-4.96%
EPS NY rev (3m)-18.95%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-4.27%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.5 | ||
| Fwd PE | 6.15 | ||
| P/S | 0.14 | ||
| P/FCF | 8.36 | ||
| P/OCF | 2.59 | ||
| P/B | 0.73 | ||
| P/tB | 1 | ||
| EV/EBITDA | 2.63 |
EPS(TTM)2.64
EY22.2%
EPS(NY)1.93
Fwd EY16.25%
FCF(TTM)1.42
FCFY11.96%
OCF(TTM)4.59
OCFY38.58%
SpS82.59
BVpS16.34
TBVpS11.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 12.79% | ||
| ROCE | 7.89% | ||
| ROIC | 6.02% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 7.67% | ||
| OM | 4.07% | ||
| PM (TTM) | 2.53% | ||
| GM | 40.28% | ||
| FCFM | 1.72% |
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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 100.11% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 6.05 | ||
| Cash Conversion | 70.3% | ||
| Profit Quality | 68.04% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.46 |
F-Score7
WACC9.74%
ROIC/WACC0.62
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)-24.14%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-26.53%
EPS Next Y-26.83%
EPS Next 2Y-13.88%
EPS Next 3Y-9.79%
EPS Next 5Y3.13%
Revenue 1Y (TTM)-3.6%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-4.33%
Revenue Next Year-5.59%
Revenue Next 2Y-4.37%
Revenue Next 3Y-4.04%
Revenue Next 5YN/A
EBIT growth 1Y-30.54%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year72.42%
EBIT Next 3Y16.59%
EBIT Next 5Y14.34%
FCF growth 1Y26.92%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y-2.07%
OCF growth 3Y-22.18%
OCF growth 5Y-4.49%