MACY'S INC (M) Stock Fundamental Analysis
USA - NYSE:M - US55616P1049 - Common Stock
18.21 USD
+0.02 (+0.11%)
18.21 USD
0 (0%)
Taking everything into account, M scores 4 out of 10 in our fundamental rating. M was compared to 28 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 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.
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
With a Return On Assets value of 3.18%, M perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
M has a better Return On Equity (11.12%) than 64.29% of its industry peers.
With a Return On Invested Capital value of 5.71%, M perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for M is below the industry average of 10.41%.
| 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
M has a better Profit Margin (2.18%) than 60.71% of its industry peers.
M's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.74%, M is in line with its industry, outperforming 53.57% of the companies in the same industry.
M's Operating Margin has declined in the last couple of years.
The Gross Margin of M (40.31%) is worse than 60.71% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M 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 a debt to FCF ratio of 4.35. This is a neutral value as M would need 4.35 years to pay back of all of its debts.
M has a Debt to FCF ratio of 4.35. This is in the better half of the industry: M outperforms 64.29% of its industry peers.
M has a Debt/Equity ratio of 0.55. This is a neutral value indicating M is somewhat dependend on debt financing.
M has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: M underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.64%
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.
Looking at the Current ratio, with a value of 1.38, M is doing worse than 60.71% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that M may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, M is doing worse than 89.29% of the companies in the same industry.
| 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
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 -4.98% on average per year.
EPS Next Y-25.47%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
EPS Next 5Y0.4%
Revenue Next Year-5.01%
Revenue Next 2Y-3.54%
Revenue Next 3Y-4.98%
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
A Price/Earnings ratio of 7.56 indicates a rather cheap valuation of M.
Compared to the rest of the industry, the Price/Earnings ratio of M indicates a rather cheap valuation: M is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, M is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.99, the valuation of M can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M indicates a rather cheap valuation: M is cheaper than 92.86% of the companies listed in the same industry.
M's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 96.43% of the companies in the same industry.
M's Price/Free Cash Flow ratio is rather cheap when compared to the industry. M is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 3.85 |
4.3 Compensation for Growth
A cheap valuation may be justified as M's earnings are expected to decrease with -9.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
5. Dividend
5.1 Amount
M has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 8.13, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
The dividend of M decreases each year by -14.37%.
M has been paying a dividend for at least 10 years, so it has 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
M pays out 39.60% of its income as dividend. This is a sustainable payout ratio.
DP39.6%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
18.21
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.6%
Inst Owner Change1.2%
Ins Owners0.09%
Ins Owner Change-1.36%
Market Cap4.89B
Analysts69
Price Target16.22 (-10.93%)
Short Float %9.75%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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)20.15%
PT rev (3m)20.15%
EPS NQ rev (1m)19.12%
EPS NQ rev (3m)22.57%
EPS NY rev (1m)7.38%
EPS NY rev (3m)9.4%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.56 | ||
| Fwd PE | 8.99 | ||
| P/S | 0.22 | ||
| P/FCF | 8.11 | ||
| P/OCF | 3.5 | ||
| P/B | 1.1 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 3.85 |
EPS(TTM)2.41
EY13.23%
EPS(NY)2.03
Fwd EY11.12%
FCF(TTM)2.25
FCFY12.33%
OCF(TTM)5.2
OCFY28.55%
SpS84.55
BVpS16.58
TBVpS11.92
PEG (NY)N/A
PEG (5Y)N/A
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
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-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
WACC8.64%
ROIC/WACC0.66
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-25.47%
EPS Next 2Y-12.41%
EPS Next 3Y-9.46%
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-5.01%
Revenue Next 2Y-3.54%
Revenue Next 3Y-4.98%
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 3Y16.13%
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%