MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
22.85 USD
+0.53 (+2.37%)
22.87 USD
+0.02 (+0.09%)
M gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 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.
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 has a Return On Assets of 3.18%. This is comparable to the rest of the industry: M outperforms 53.33% of its industry peers.
M has a Return On Equity of 11.12%. This is in the better half of the industry: M outperforms 63.33% of its industry peers.
M's Return On Invested Capital of 5.71% is in line compared to the rest of the industry. M outperforms 46.67% of its industry peers.
M had an Average Return On Invested Capital over the past 3 years of 8.23%. This is in line with the industry average of 9.35%.
| 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
With a Profit Margin value of 2.18%, M perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
M's Profit Margin has improved in the last couple of years.
M has a Operating Margin (3.74%) which is comparable to the rest of the industry.
M's Operating Margin has declined in the last couple of years.
The Gross Margin of M (40.31%) is worse than 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
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
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 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that M is somewhat dependend on debt financing.
M has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC8.36%
2.3 Liquidity
M has a Current Ratio of 1.38. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of M (1.38) is worse 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.
M has a worse Quick ratio (0.35) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
M shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.35%.
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
Based on estimates for the next years, M will show a small growth in Earnings Per Share. The EPS will grow by 0.40% on average per year.
The Revenue is expected to decrease by -4.97% on average over the next years.
EPS Next Y-24.99%
EPS Next 2Y-12.04%
EPS Next 3Y-9.38%
EPS Next 5Y0.4%
Revenue Next Year-5.09%
Revenue Next 2Y-3.68%
Revenue Next 3Y-4.97%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
M is valuated reasonably with a Price/Earnings ratio of 9.48.
Based on the Price/Earnings ratio, M is valued cheaper than 93.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of M to the average of the S&P500 Index (26.46), we can say M is valued rather cheaply.
M is valuated reasonably with a Price/Forward Earnings ratio of 11.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M indicates a rather cheap valuation: M is cheaper than 83.33% of the companies listed in the same industry.
M is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, M is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 4.48 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -9.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.04%
EPS Next 3Y-9.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.25%, M has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 14.88, M pays a better dividend. On top of this M pays more dividend than 93.33% of the companies listed in the same industry.
M's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
The dividend of M decreases each year by -14.37%.
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)-14.37%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
39.60% of the earnings are spent on dividend by M. This is a low number and sustainable payout ratio.
DP39.6%
EPS Next 2Y-12.04%
EPS Next 3Y-9.38%
22.85
+0.53 (+2.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change-1.29%
Ins Owners0.09%
Ins Owner Change-1.84%
Market Cap6.14B
Revenue(TTM)22.70B
Net Income(TTM)495.00M
Analysts68.57
Price Target16.69 (-26.96%)
Short Float %7.29%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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)2.86%
PT rev (3m)23.58%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)21.83%
EPS NY rev (1m)0.24%
EPS NY rev (3m)8.07%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 11.19 | ||
| P/S | 0.27 | ||
| P/FCF | 10.17 | ||
| P/OCF | 4.4 | ||
| P/B | 1.38 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 4.48 |
EPS(TTM)2.41
EY10.55%
EPS(NY)2.04
Fwd EY8.94%
FCF(TTM)2.25
FCFY9.83%
OCF(TTM)5.2
OCFY22.75%
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
WACC8.36%
ROIC/WACC0.68
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-24.99%
EPS Next 2Y-12.04%
EPS Next 3Y-9.38%
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-5.09%
Revenue Next 2Y-3.68%
Revenue Next 3Y-4.97%
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 3Y16.83%
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 9.48 and the Price/Book (PB) ratio is 1.38.
Can you provide the dividend sustainability for M stock?
The dividend rating of MACY'S INC (M) is 5 / 10 and the dividend payout ratio is 39.6%.