MACY'S INC (M) Stock Fundamental Analysis
NYSE:M - US55616P1049 - Common Stock
17.04 USD
-0.17 (-0.99%)
17.04 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 has a bad growth rate and is valued cheaply. 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.
In the past 5 years M always reported a positive cash flow from operatings.
1.2 Ratios
M has a Return On Assets of 3.18%. This is comparable to the rest of the industry: M outperforms 57.14% of its industry peers.
With a decent Return On Equity value of 11.12%, M is doing good in the industry, outperforming 64.29% of the companies in the same industry.
M has a Return On Invested Capital of 5.71%. This is comparable to the rest of the industry: M outperforms 46.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for M is below the industry average of 11.00%.
| 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's Profit Margin of 2.18% is fine compared to the rest of the industry. M outperforms 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.
In the last couple of years the Operating Margin of M has declined.
M has a Gross Margin (40.31%) which is comparable to the rest of the industry.
M's Gross Margin has been stable in the last couple of years.
| 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.
M has a better debt/assets ratio than last year.
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 better Debt to FCF ratio (4.35) than 60.71% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that M is somewhat dependend on debt financing.
The Debt to Equity ratio of M (0.55) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.38 indicates that M should not have too much problems paying its short term obligations.
M has a Current ratio of 1.38. This is in the lower half of the industry: M underperforms 60.71% of its industry peers.
M has a Quick Ratio of 1.38. 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 Quick ratio of 0.35. This is amonst the worse of the industry: M underperforms 89.29% 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 -24.14%.
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.
Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -3.43% in the last year.
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%-39.62%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%1.26%
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 0.55% on average per year.
M is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.30% yearly.
EPS Next Y-30.59%
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
EPS Next 5Y0.55%
Revenue Next Year-4.99%
Revenue Next 2Y-3.88%
Revenue Next 3Y-5.3%
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
The Price/Earnings ratio is 6.45, which 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.
M is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.11, the valuation of M can be described as very reasonable.
Based on the Price/Forward Earnings ratio, M is valued cheaper than 89.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.54. M is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
M's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. M is cheaper than 92.86% 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 | 7.67 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
M's earnings are expected to decrease with -11.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, M is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.38, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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
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-15.81%
EPS Next 3Y-11.03%
17.04
-0.17 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.38%
Inst Owner Change1.18%
Ins Owners0.18%
Ins Owner Change1.79%
Market Cap4.63B
Analysts55
Price Target13.5 (-20.77%)
Short Float %9.52%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend0.7
Dividend Growth(5Y)-14.36%
DP39.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.11%
Max Revenue beat(2)2.88%
Revenue beat(4)2
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)8
Avg Revenue beat(16)0.19%
PT rev (1m)0%
PT rev (3m)5.06%
EPS NQ rev (1m)4.66%
EPS NQ rev (3m)-191.54%
EPS NY rev (1m)1.61%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 9.11 | ||
| P/S | 0.2 | ||
| P/FCF | 7.67 | ||
| P/OCF | 3.31 | ||
| P/B | 1.04 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)2.64
EY15.49%
EPS(NY)1.87
Fwd EY10.98%
FCF(TTM)2.22
FCFY13.03%
OCF(TTM)5.14
OCFY30.17%
SpS83.6
BVpS16.39
TBVpS11.78
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
WACC8.67%
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)-24.14%
EPS 3Y-21.03%
EPS 5Y-1.93%
EPS Q2Q%-39.62%
EPS Next Y-30.59%
EPS Next 2Y-15.81%
EPS Next 3Y-11.03%
EPS Next 5Y0.55%
Revenue 1Y (TTM)-3.43%
Revenue growth 3Y-3.11%
Revenue growth 5Y-1.91%
Sales Q2Q%1.26%
Revenue Next Year-4.99%
Revenue Next 2Y-3.88%
Revenue Next 3Y-5.3%
Revenue Next 5YN/A
EBIT growth 1Y-31.37%
EBIT growth 3Y-25.78%
EBIT growth 5Y-4.23%
EBIT Next Year65.75%
EBIT Next 3Y18.6%
EBIT Next 5Y12.64%
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%