MACY'S INC (M) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:M - US55616P1049 - Common Stock
22.5955 USD
-0.35 (-1.54%)
Overall M gets a fundamental rating of 4 out of 10. We evaluated M against 30 industry peers in the Broadline Retail industry. Both the profitability and the financial health of M get a neutral evaluation. Nothing too spectacular is happening here. 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.
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's Return On Assets of 2.80% is in line compared to the rest of the industry. M outperforms 53.33% of its industry peers.
With a decent Return On Equity value of 11.04%, M is doing good in the industry, outperforming 63.33% of the companies in the same industry.
M has a Return On Invested Capital (6.20%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for M is in line with the industry average of 9.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 11.04% | ||
| ROIC | 6.2% |
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
Looking at the Profit Margin, with a value of 2.10%, M is in line with its industry, outperforming 56.67% 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 (4.00%) which is comparable to the rest of the industry.
M's Operating Margin has declined in the last couple of years.
M's Gross Margin of 40.38% is on the low side compared to the rest of the industry. M is outperformed by 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 | 4% | ||
| PM (TTM) | 2.1% | ||
| GM | 40.38% |
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.
Compared to 1 year ago, M has more shares outstanding
Compared to 5 years ago, M has less shares outstanding
The debt/assets ratio for M has been reduced compared to a year ago.
2.2 Solvency
M has an Altman-Z score of 2.43. 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 Altman-Z score of 2.43. This is comparable to the rest of the industry: M outperforms 60.00% of its industry peers.
The Debt to FCF ratio of M is 3.05, which is a good value as it means it would take M, 3.05 years of fcf income to pay off all of its debts.
M's Debt to FCF ratio of 3.05 is fine compared to the rest of the industry. M outperforms 73.33% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that M is somewhat dependend on debt financing.
M has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: M underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.74
WACC8.35%
2.3 Liquidity
M has a Current Ratio of 1.25. 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 1.25, M is doing worse than 70.00% of the companies in the same industry.
M has a Quick Ratio of 1.25. 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's Quick ratio of 0.18 is on the low side compared to the rest of the industry. M is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for M have decreased strongly by -25.23% in the last year.
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 -2.83% in the past year.
M shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.91% yearly.
EPS 1Y (TTM)-25.23%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%125%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
3.2 Future
The Earnings Per Share is expected to grow by 0.40% 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 -2.04% on average per year.
EPS Next Y-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
EPS Next 5Y0.4%
Revenue Next Year-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.19 indicates a reasonable valuation of M.
93.33% of the companies in the same industry are more expensive than M, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.61. M is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.03, which indicates a very decent valuation of M.
M's Price/Forward Earnings ratio is rather cheap when compared to the industry. M is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of M to the average of the S&P500 Index (24.01), we can say M is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, M is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.51 | ||
| EV/EBITDA | 4.47 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -4.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
M's Dividend Yield is rather good when compared to the industry average which is at 2.17. M pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, M pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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
41.21% of the earnings are spent on dividend by M. This is a bit on the high side, but may be sustainable.
DP41.21%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
NYSE:M (12/23/2025, 11:37:08 AM)
22.5955
-0.35 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change-1.28%
Ins Owners0.09%
Ins Owner Change-2.58%
Market Cap5.99B
Revenue(TTM)22.71B
Net Income(TTM)478.00M
Analysts69.47
Price Target22.28 (-1.4%)
Short Float %7.19%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.37%
DP41.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)141.17%
Min EPS beat(2)119.65%
Max EPS beat(2)162.7%
EPS beat(4)4
Avg EPS beat(4)76.51%
Min EPS beat(4)8.59%
Max EPS beat(4)162.7%
EPS beat(8)8
Avg EPS beat(8)72.07%
EPS beat(12)12
Avg EPS beat(12)450.85%
EPS beat(16)16
Avg EPS beat(16)352.8%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-2.1%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.46%
PT rev (1m)34.47%
PT rev (3m)40.56%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)11.32%
EPS NY rev (3m)12.04%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.26 | ||
| P/FCF | 7.51 | ||
| P/OCF | 3.85 | ||
| P/B | 1.38 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 4.47 |
EPS(TTM)2.46
EY10.89%
EPS(NY)2.25
Fwd EY9.97%
FCF(TTM)3.01
FCFY13.32%
OCF(TTM)5.87
OCFY25.98%
SpS85.74
BVpS16.34
TBVpS11.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number30.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.8% | ||
| ROE | 11.04% | ||
| ROCE | 8.12% | ||
| ROIC | 6.2% | ||
| ROICexc | 6.46% | ||
| ROICexgc | 7.31% | ||
| OM | 4% | ||
| PM (TTM) | 2.1% | ||
| GM | 40.38% | ||
| FCFM | 3.51% |
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 Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 84.6% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 4.68 | ||
| Cash Conversion | 86.2% | ||
| Profit Quality | 166.74% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 2.43 |
F-Score6
WACC8.35%
ROIC/WACC0.74
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)-25.23%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%125%
EPS Next Y-16.5%
EPS Next 2Y-7.61%
EPS Next 3Y-4.44%
EPS Next 5Y0.4%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%-0.61%
Revenue Next Year-3.61%
Revenue Next 2Y-2.63%
Revenue Next 3Y-2.04%
Revenue Next 5YN/A
EBIT growth 1Y-18.64%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year77.33%
EBIT Next 3Y20.14%
EBIT Next 5Y12.63%
FCF growth 1Y255.8%
FCF growth 3Y-42.79%
FCF growth 5Y-2.57%
OCF growth 1Y21.01%
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 9.19 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 41.21%.