MACY'S INC (M)
US55616P1049 - Common Stock
We assign a fundamental rating of 4 out of 10 to M. M was compared to 34 industry peers in the Broadline Retail industry. M has a medium profitability rating, but doesn't score so well on its financial health evaluation. M has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
M had positive earnings in the past year.
In the past year M had a positive cash flow from operations.
Of the past 5 years M 4 years were profitable.
M had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
M has a Return On Assets (0.65%) which is comparable to the rest of the industry.
The Return On Equity of M (2.54%) is comparable to the rest of the industry.
The Return On Invested Capital of M (9.26%) is better than 75.76% of its industry peers.
M had an Average Return On Invested Capital over the past 3 years of 11.96%. This is in line with the industry average of 11.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.65% | ||
| ROE | 2.54% | ||
| 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
Looking at the Profit Margin, with a value of 0.44%, M is in line with its industry, outperforming 51.52% of the companies in the same industry.
In the last couple of years the Profit Margin of M has declined.
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.
With a Gross Margin value of 40.74%, M perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
M's Gross Margin has been stable in the last couple of years.
| 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
M has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
M has more shares outstanding than it did 1 year ago.
The number of shares outstanding for M has been reduced compared to 5 years ago.
The debt/assets ratio for M is higher compared to a year ago.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 9.61, M is in line with its industry, outperforming 48.48% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that 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 | N/A |
ROIC/WACC1.01
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.37 indicates that M should not have too much problems paying its short term obligations.
M's Current ratio of 1.37 is on the low side compared to the rest of the industry. M is outperformed by 60.61% of its industry peers.
A Quick Ratio of 0.39 indicates that M may have some problems paying its short term obligations.
M's Quick ratio of 0.39 is on the low side compared to the rest of the industry. M is outperformed by 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.
The Earnings Per Share has been decreasing by -3.60% on average over the past years.
Looking at the last year, M shows a decrease in Revenue. The Revenue has decreased by -5.89% in the last year.
Measured over the past years, M shows a decrease in Revenue. The Revenue has been decreasing by -1.50% on average per year.
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
The Earnings Per Share is expected to grow by 5.60% 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 -4.35% 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
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 5.47 indicates a rather cheap valuation of M.
Based on the Price/Earnings ratio, M is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.83, M is valued rather cheaply.
A Price/Forward Earnings ratio of 7.11 indicates a rather cheap valuation of M.
87.88% of the companies in the same industry are more expensive than M, based on the Price/Forward Earnings ratio.
M is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M is valued cheaper than 96.97% of the companies 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 69.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.74 | ||
| EV/EBITDA | 3.2 |
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 3.49%, M has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.21, M pays a better dividend. On top of this M pays more dividend than 90.91% of the companies listed in the same industry.
M's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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.
The dividend of M decreased in the last 3 years.
Dividend Growth(5Y)-15.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
M pays out 172.38% of its income as dividend. This is not a sustainable payout ratio.
DP172.38%
EPS Next 2Y-13.01%
EPS Next 3Y-9.79%
MACY'S INC
NYSE:M (4/18/2024, 3:28:03 PM)
After market: 18.99 -0.05 (-0.26%)19.04
+0.03 (+0.16%)
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 Cap5.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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 | 5.47 | ||
| Fwd PE | 7.11 | ||
| 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 | 2.54% | ||
| 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