NYSE:JWN

Stock Analysis Report

Executive Summary

Nordstrom, Inc., a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children.


Snowflake Analysis

Good value with imperfect balance sheet.


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

-10.4%

JWN

0.5%

US Multiline Retail

9.9%

US Market


1 Year Return

-63.9%

JWN

-12.0%

US Multiline Retail

-11.9%

US Market

Return vs Industry: JWN underperformed the US Multiline Retail industry which returned -12% over the past year.

Return vs Market: JWN underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

JWNIndustryMarket
7 Day-10.4%0.5%9.9%
30 Day-54.3%-12.6%-15.0%
90 Day-60.9%-25.7%-21.5%
1 Year-62.2%-63.9%-9.7%-12.0%-10.0%-11.9%
3 Year-61.7%-65.6%31.0%21.3%12.3%5.1%
5 Year-74.7%-80.0%-4.3%-17.3%32.5%18.1%

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 ($16.01) is trading below our estimate of fair value ($67.88)

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


Price To Earnings Ratio

PE vs Industry: JWN is good value based on its PE Ratio (5x) compared to the Multiline Retail industry average (9.1x).

PE vs Market: JWN is good value based on its PE Ratio (5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JWN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: JWN is overvalued based on its PB Ratio (2.5x) compared to the US Multiline Retail industry average (0.6x).


Next Steps

Future Growth

How is Nordstrom forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JWN's earnings are forecast to decline over the next 3 years (-14.7% per year).

Earnings vs Market: JWN's earnings are forecast to decline over the next 3 years (-14.7% per year).

High Growth Earnings: JWN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: JWN's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JWN's revenue (0.7% 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 (47%).


Next Steps

Past Performance

How has Nordstrom performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JWN has high quality earnings.

Growing Profit Margin: JWN's current net profit margins (3.2%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: JWN's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: JWN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JWN had negative earnings growth (-11.9%) over the past year, making it difficult to compare to the Multiline Retail industry average (-3.8%).


Return on Equity

High ROE: Whilst JWN's Return on Equity (50.66%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Nordstrom's financial position?


Financial Position Analysis

Short Term Liabilities: JWN's short term assets ($3.2B) do not cover its short term liabilities ($3.5B).

Long Term Liabilities: JWN's short term assets ($3.2B) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: JWN's debt to equity ratio (273.3%) is considered high.

Reducing Debt: JWN's debt to equity ratio has increased from 128.2% to 273.3% over the past 5 years.

Debt Coverage: JWN's debt is well covered by operating cash flow (46.2%).

Interest Coverage: JWN's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

Inventory Level: JWN has a high level of physical assets or inventory.

Debt Coverage by Assets: JWN's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

7.22%

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 payouts.

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

2.0yrs

Average management tenure


CEO

Erik Nordstrom (55yo)

1.17s

Tenure

US$4,451,746

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 ($USD4.45M) is about average for companies of similar size in the US market ($USD5.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Erik Nordstrom
CEO, Principal Executive Officer & Director1.17yrsUS$4.45m1.75% $43.9m
Peter Nordstrom
President14.17yrsUS$4.43m1.77% $44.2m
Anne Bramman
Chief Financial Officer2.75yrsUS$5.17m0.020% $512.9k
Kenneth Worzel
Chief Operating Officer0.50yrUS$5.98m0.090% $2.3m
Christine Deputy
Chief Human Resources Officer4.75yrsUS$3.67m0.047% $1.2m
Michael Maher
Chief Accounting Officer0.17yrno data0.021% $525.4k
Trina Schurman
Director of Investor Relationsno datano datano data
Ann Steines
Executive VP0.67yrno data0.012% $310.9k
Scott Meden
Chief Marketing Officer3.58yrsno data0.045% $1.1m
Teri Bariquit
Chief Merchandising Officer7.58yrsno data0.023% $581.7k

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: JWN's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Erik Nordstrom
CEO, Principal Executive Officer & Director1.17yrsUS$4.45m1.75% $43.9m
Peter Nordstrom
President14.17yrsUS$4.43m1.77% $44.2m
Bradley Tilden
Independent Director4.17yrsUS$269.21k0.011% $273.8k
Shellye Archambeau
Independent Director5.17yrsUS$255.37k0.0042% $105.9k
Gordon Smith
Independent Director5.17yrsUS$273.91k0.014% $353.7k
Brad Smith
Independent Chairman of the Board1.33yrsUS$348.20k0.019% $465.3k
Tanya Domier
Independent Director5.17yrsUS$262.70k0.010% $262.3k
Kirsten Green
Independent Director1.08yrsno data0.0033% $81.6k
Stacy Brown-Philpot
Independent Director2.83yrsUS$249.78k0.0022% $55.1k
Brian Turner
Independent Director10.17yrsUS$302.16k0.028% $706.4k

5.2yrs

Average Tenure

55yo

Average Age

Experienced Board: JWN's board of directors are considered experienced (5.2 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$2.503b
  • Shares outstanding: 156.35m
  • 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 apparel, shoes, cosmetics, and accessories for women, men, young adults, and children. It offers a range of brand name and private label merchandise through various channels, such as Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Jeffrey boutiques; clearance stores that operate under the Last Chance name; Trunk Club clubhouses and TrunkClub.com; and Nordstrom Locals. As of October 24, 2019, the company operated 382 stores in 40 states, including 117 full-line stores in the United States, Canada, and Puerto Rico; 249 Nordstrom Rack stores; 3 Jeffrey boutiques; 2 clearance stores; 6 Trunk Club clubhouses; and 5 Nordstrom Local service concepts, as well as online through Nordstrom.com, Nordstromrack.com, HauteLook, and TrunkClub.com. Nordstrom, Inc. was founded in 1901 and is headquartered in Seattle, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:53
End of Day Share Price2020/03/27 00:00
Earnings2020/02/01
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.