NYSE:JWN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nordstrom, Inc., a fashion retailer, provides apparels, shoes, cosmetics, and accessories 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.5%

JWN

-0.8%

US Multiline Retail

-1.4%

US Market


1 Year Return

-65.7%

JWN

20.8%

US Multiline Retail

17.8%

US Market

Return vs Industry: JWN underperformed the US Multiline Retail industry which returned 19.8% over the past year.

Return vs Market: JWN underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

JWNIndustryMarket
7 Day-7.5%-0.8%-1.4%
30 Day-4.0%7.7%4.7%
90 Day-17.3%18.6%8.2%
1 Year-64.9%-65.7%22.8%20.8%20.5%17.8%
3 Year-67.7%-70.5%94.6%83.3%42.2%32.7%
5 Year-77.6%-80.8%101.8%76.9%83.4%62.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JWN ($12.45) is trading below our estimate of fair value ($33.72)

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 (11.2x) compared to the US Multiline Retail industry average (3.3x).


Next Steps

Future Growth

How is Nordstrom forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

86.4%

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 (2.2%).

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 (8.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: JWN's revenue (8.1% 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 (103.4%).


Next Steps

Past Performance

How has Nordstrom performed over the past 5 years?

-18.1%

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 18.1% 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 (43.6%).


Return on Equity

High ROE: JWN has a negative Return on Equity (-262.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nordstrom's financial position?


Financial Position Analysis

Short Term Liabilities: JWN's short term assets ($3.4B) do not cover its short term liabilities ($3.6B).

Long Term Liabilities: JWN's short term assets ($3.4B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: JWN's debt to equity ratio (2164.4%) is considered high.

Reducing Debt: JWN's debt to equity ratio has increased from 127% to 2164.4% over the past 5 years.

Debt Coverage: JWN's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

6.43%

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?

2.8yrs

Average management tenure


CEO

Erik Nordstrom (56 yo)

1.75yrs

Tenure

US$6,872,303

Compensation

Mr. Erik B. Nordstrom serves as Chief Executive Officer of Nordstrom Inc. since April 2015 and its Principal Executive Officer since January 10, 2019. He was Co-President of Mr. Nordstrom serves as a Memb ...


CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD6.87M) is above average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Erik's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Erik Nordstrom
CEO, Principal Executive Officer & Director1.75yrsUS$6.87m1.74%
$ 34.1m
Peter Nordstrom
President14.75yrsUS$6.98m1.76%
$ 34.4m
Anne Bramman
Chief Financial Officer3.33yrsUS$4.81m0.023%
$ 445.1k
Kenneth Worzel
Chief Operating Officer1.08yrsUS$7.50m0.090%
$ 1.8m
Edmond Mesrobian
Chief Technology Officer2.17yrsUS$4.57m0.017%
$ 325.2k
Michael Maher
Senior VP & Chief Accounting Officer0.75yrno data0.024%
$ 477.8k
Trina Schurman
Director of Investor Relationsno datano datano data
Ann Steines
Executive VP1.25yrsno data0.012%
$ 236.0k
Scott Meden
Chief Marketing Officer4.17yrsno data0.045%
$ 886.7k
Christine Deputy
Chief Human Resources Officer5.33yrsUS$3.67m0.046%
$ 903.3k
Teri Bariquit
Chief Merchandising Officer8.17yrsno data0.030%
$ 583.2k
Tricia Smith
Executive Vice President and General Merchandise Manager of Designer & Women's Apparel8.33yrsno datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: JWN's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Erik Nordstrom
CEO, Principal Executive Officer & Director1.75yrsUS$6.87m1.74%
$ 34.1m
Peter Nordstrom
President14.75yrsUS$6.98m1.76%
$ 34.4m
James Donald
Independent Director0.58yrno data0.0057%
$ 112.5k
Bradley Tilden
Independent Director4.75yrsUS$261.92k0.017%
$ 325.6k
Shellye Archambeau
Independent Director5.75yrsUS$230.12k0.010%
$ 194.9k
Glenda McNeal
Independent Director1.67yrsUS$281.23k0.0090%
$ 175.9k
Brad Smith
Independent Chairman of the Board1.92yrsUS$432.06k0.032%
$ 624.5k
Tanya Domier
Independent Director5.75yrsUS$265.79k0.016%
$ 316.6k
Mark Tritton
Independent Director0.58yrno data0.0057%
$ 112.5k
Kirsten Green
Independent Director1.67yrsUS$290.81k0.0090%
$ 175.9k
Stacy Brown-Philpot
Independent Director3.42yrsUS$233.74k0.0022%
$ 42.8k

3.4yrs

Average Tenure

57yo

Average Age

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.


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$1.957b
  • Shares outstanding: 157.15m
  • Website: https://shop.nordstrom.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JWNNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
NRDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
JWN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
0K8JLSE (London Stock Exchange)YesCommon StockGBUSDDec 1972
J1WN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM NPVBRBRLDec 2019

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:49
End of Day Share Price2020/10/21 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.