NYSE:JWN

Stock Analysis Report

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Market Cap

US$5.3b

Last Updated

2021/08/01 00:18 UTC

Data Sources

Company Financials +

Executive Summary

Nordstrom, Inc., a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Nordstrom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JWN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: JWN's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

6.5%

JWN

0.4%

US Multiline Retail

-0.5%

US Market


1 Year Return

141.8%

JWN

62.9%

US Multiline Retail

35.9%

US Market

Return vs Industry: JWN exceeded the US Multiline Retail industry which returned 63% over the past year.

Return vs Market: JWN exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

JWNIndustryMarket
7 Day6.5%0.4%-0.5%
30 Day-9.3%4.3%0.09%
90 Day-9.8%11.4%3.2%
1 Year141.8%141.8%64.6%62.9%38.0%35.9%
3 Year-29.9%-34.6%113.2%101.2%62.8%52.6%
5 Year-13.4%-24.0%148.7%124.5%121.2%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Nordstrom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nordstrom undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JWN ($33.1) is trading below our estimate of fair value ($54.86)

Significantly Below Fair Value: JWN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JWN is unprofitable, so we can't compare its PE Ratio to the US Multiline Retail industry average.

PE vs Market: JWN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JWN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JWN is overvalued based on its PB Ratio (31.7x) compared to the US Multiline Retail industry average (3.1x).


Future Growth

How is Nordstrom forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JWN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: JWN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: JWN's is expected to become profitable in the next 3 years.

Revenue vs Market: JWN's revenue (4.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: JWN's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JWN's Return on Equity is forecast to be very high in 3 years time (123.2%).


Past Performance

How has Nordstrom performed over the past 5 years?

-37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JWN is currently unprofitable.

Growing Profit Margin: JWN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JWN is unprofitable, and losses have increased over the past 5 years at a rate of 37.5% per year.

Accelerating Growth: Unable to compare JWN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JWN is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (109%).


Return on Equity

High ROE: JWN has a negative Return on Equity (-201.81%), as it is currently unprofitable.


Financial Health

How is Nordstrom's financial position?


Financial Position Analysis

Short Term Liabilities: JWN's short term assets ($3.5B) do not cover its short term liabilities ($4.0B).

Long Term Liabilities: JWN's short term assets ($3.5B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: JWN's debt to equity ratio (2136.7%) is considered high.

Reducing Debt: JWN's debt to equity ratio has increased from 317.9% to 2136.7% over the past 5 years.

Debt Coverage: JWN's debt is not well covered by operating cash flow (1.9%).

Interest Coverage: Insufficient data to determine if JWN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Nordstrom current dividend yield, its reliability and sustainability?

4.06%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JWN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JWN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JWN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JWN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JWN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JWN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Erik Nordstrom (57 yo)

2.5yrs

Tenure

US$5,647,670

Compensation

Mr. Erik B. Nordstrom serves as Chief Executive Officer of Nordstrom Inc. since January 10, 2019. He was Co-President of Mr. Nordstrom serves as a Member of Executive Team of Nordstrom Inc., and has been i...


CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD5.65M) is about average for companies of similar size in the US market ($USD6.47M).

Compensation vs Earnings: Erik's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: JWN's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: JWN's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nordstrom, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nordstrom, Inc.
  • Ticker: JWN
  • Exchange: NYSE
  • Founded: 1901
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: US$5.260b
  • Shares outstanding: 158.90m
  • Website: https://press.nordstrom.com

Number of Employees


Location

  • Nordstrom, Inc.
  • 1617 Sixth Avenue
  • Seattle
  • Washington
  • 98101
  • United States

Listings


Biography

Nordstrom, Inc., a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. It offers a range of brand name and private label merchandise ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 00:18
End of Day Share Price2021/07/30 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.