MACY'S INC (M)
US55616P1049 - Common Stock
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 34 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 is valued quite cheap, but it does not seem to be growing.
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.
In the past 5 years M always reported a positive cash flow from operatings.
1.2 Ratios
M has a Return On Assets of 0.65%. This is comparable to the rest of the industry: M outperforms 48.48% of its industry peers.
M has a Return On Equity (2.56%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 9.26%, M is doing good in the industry, outperforming 75.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for M is in line with the industry average of 11.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 2.56% | ||
| ROIC | 9.26% |
ROA(3y)5.25%
ROA(5y)-0.77%
ROE(3y)23.62%
ROE(5y)-14.96%
ROIC(3y)11.96%
ROIC(5y)N/A
1.3 Margins
M has a Profit Margin (0.44%) which is comparable to the rest of the industry.
M's Profit Margin has declined in the last couple of years.
M's Operating Margin of 5.65% is fine compared to the rest of the industry. M outperforms 66.67% of its industry peers.
M's Operating Margin has been stable in the last couple of years.
M has a Gross Margin of 40.74%. This is comparable to the rest of the industry: M outperforms 51.52% 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 | 5.65% | ||
| PM (TTM) | 0.44% | ||
| GM | 40.74% |
OM growth 3YN/A
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5Y-36.63%
GM growth 3Y8.26%
GM growth 5Y-0.07%
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.
The number of shares outstanding for M has been increased compared to 1 year ago.
The number of shares outstanding for M has been reduced compared to 5 years ago.
Compared to 1 year ago, M has a worse debt to assets ratio.
2.2 Solvency
M has an Altman-Z score of 2.65. 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.
M has a better Altman-Z score (2.65) than 63.64% of its industry peers.
M has a debt to FCF ratio of 9.61. This is a negative value and a sign of low solvency as M would need 9.61 years to pay back of all of its debts.
M has a Debt to FCF ratio (9.61) which is in line with its industry peers.
M has a Debt/Equity ratio of 0.72. This is a neutral value indicating M is somewhat dependend on debt financing.
M has a worse Debt to Equity ratio (0.72) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.96
WACC9.67%
2.3 Liquidity
M has a Current Ratio of 1.37. This is a normal value and indicates that M is financially healthy and should not expect problems in meeting its short term obligations.
M has a Current ratio of 1.37. This is in the lower half of the industry: M underperforms 60.61% of its industry peers.
M has a Quick Ratio of 1.37. This is a bad value and indicates that M is not financially healthy enough and could expect problems in meeting its short term obligations.
M has a worse Quick ratio (0.39) than 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -19.26% in the last year.
Measured over the past years, M shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.60% on average per year.
The Revenue has decreased by -5.89% in the past year.
The Revenue has been decreasing by -1.50% on average over the past years.
EPS 1Y (TTM)-19.26%
EPS 3YN/A
EPS 5Y-3.6%
EPS growth Q2Q43.27%
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y9.66%
Revenue growth 5Y-1.5%
Revenue growth Q2Q-1.77%
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 5.60% on average per year.
Based on estimates for the next years, M will show a decrease in Revenue. The Revenue will decrease by -4.35% on average per year.
EPS Next Y-23.03%
EPS Next 2Y-13.01%
EPS Next 3Y-9.79%
EPS Next 5Y5.6%
Revenue Next Year-2.2%
Revenue Next 2Y-1.86%
Revenue Next 3Y-4.35%
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.
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 5.30, the valuation of M can be described as very cheap.
96.97% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
M is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of M.
M's Price/Forward Earnings ratio is rather cheap when compared to the industry. M is cheaper than 90.91% of the companies in the same industry.
M is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 6.88 |
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 93.94% of the companies listed 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 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 3.13 |
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-13.01%
EPS Next 3Y-9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, M has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.27, M pays a better dividend. On top of this M pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of M decreases each year by -15.16%.
M has been paying a dividend for at least 10 years, so it has a reliable track record.
M has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
170.75% of the earnings are spent on dividend by M. This is not a sustainable payout ratio.
DP170.75%
EPS Next 2Y-13.01%
EPS Next 3Y-9.79%
MACY'S INC
NYSE:M (4/26/2024, 7:04:00 PM)
Premarket: 18.43 0 (0%)18.43
+0.08 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 6.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 2.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.65% | ||
| PM (TTM) | 0.44% | ||
| GM | 40.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.26%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y9.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y