company background image
M

Macy'sNYSE:M Stock Report

Last Price

US$22.94

Market Cap

US$6.9b

7D

-11.9%

1Y

78.1%

Updated

21 Jan, 2022

Data

Company Financials +
M fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

M Stock Overview

Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and bluemercury brands.

Macy's Competitors

Kohl's

NYSE:KSS

US$6.7b

Dillard's

NYSE:DDS

US$4.5b

Nordstrom

NYSE:JWN

US$3.3b

Sears Holdings

OTCPK:SHLD.Q

US$1.2m

Price History & Performance

Summary of all time highs, changes and price drops for Macy's
Historical stock prices
Current Share PriceUS$22.94
52 Week HighUS$37.95
52 Week LowUS$12.00
Beta2.06
1 Month Change-7.76%
3 Month Change-13.73%
1 Year Change78.11%
3 Year Change-10.07%
5 Year Change-21.20%
Change since IPO165.97%

Recent News & Updates

Jan 21
Here's What To Make Of Macy's' (NYSE:M) Decelerating Rates Of Return

Here's What To Make Of Macy's' (NYSE:M) Decelerating Rates Of Return

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...

Dec 31
Is Macy's (NYSE:M) A Risky Investment?

Is Macy's (NYSE:M) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Dec 09

Macy's: Why I See 70% Upside Potential

My target price for Macy's is $46.9 based on my estimates and a reasonable valuation multiple. The important fourth quarter will give free cash flow a boost. Macy's still trades below its average valuation of the past 10 years.

Shareholder Returns

MUS Multiline RetailUS Market
7D-11.9%-3.6%-4.0%
1Y78.1%7.9%6.6%

Return vs Industry: M exceeded the US Multiline Retail industry which returned 7.9% over the past year.

Return vs Market: M exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is M's price volatile compared to industry and market?
M volatility
M Average Weekly Movement9.6%
Multiline Retail Industry Average Movement7.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: M is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: M's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
183075,711Jeff Gennettehttps://www.macysinc.com

Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and bluemercury brands. It sells a range of merchandise, including apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods. As of January 30, 2021, the company operated 727 store locations in 43 states, the District of Columbia, Puerto Rico, and Guam.

Macy's Fundamentals Summary

How do Macy's's earnings and revenue compare to its market cap?
M fundamental statistics
Market CapUS$6.87b
Earnings (TTM)US$847.00m
Revenue (TTM)US$23.40b

8.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
M income statement (TTM)
RevenueUS$23.40b
Cost of RevenueUS$14.25b
Gross ProfitUS$9.15b
ExpensesUS$8.31b
EarningsUS$847.00m

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.83
Gross Margin39.11%
Net Profit Margin3.62%
Debt/Equity Ratio114.2%

How did M perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Macy's undervalued compared to its fair value and its price relative to the market?

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M ($22.94) is trading below our estimate of fair value ($33.68)

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


Price To Earnings Ratio

PE vs Industry: M is good value based on its PE Ratio (8.1x) compared to the US Multiline Retail industry average (15.7x).

PE vs Market: M is good value based on its PE Ratio (8.1x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: M is good value based on its PB Ratio (2.3x) compared to the US Multiline Retail industry average (2.9x).


Future Growth

How is Macy's forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M's earnings are forecast to decline over the next 3 years (-8.9% per year).

Earnings vs Market: M's earnings are forecast to decline over the next 3 years (-8.9% per year).

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

Revenue vs Market: M's revenue (1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: M's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: M's Return on Equity is forecast to be low in 3 years time (18.2%).


Past Performance

How has Macy's performed over the past 5 years?

-40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M has high quality earnings.

Growing Profit Margin: M became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: M's earnings have declined by 40.8% per year over the past 5 years.

Accelerating Growth: M has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: M has become profitable in the last year, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-4%).


Return on Equity

High ROE: Whilst M's Return on Equity (28.16%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Macy's's financial position?


Financial Position Analysis

Short Term Liabilities: M's short term assets ($7.6B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: M's short term assets ($7.6B) do not cover its long term liabilities ($8.6B).


Debt to Equity History and Analysis

Debt Level: M's net debt to equity ratio (103.7%) is considered high.

Reducing Debt: M's debt to equity ratio has reduced from 196% to 114.2% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (36.3%).

Interest Coverage: M's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: M's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: M's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: M's dividend payments have been volatile in the past 10 years.

Growing Dividend: M's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.5%), M's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: M's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jeff Gennette (60 yo)

4.83yrs

Tenure

US$11,083,293

Compensation

Mr. Jeffrey Gennette, also known as Jeff, has been the Chairman since January 2018 and Chief Executive Officer since March 2017 of Macy's, Inc. (formerly known as Federated Department Stores, Inc.) and ser...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD11.08M) is above average for companies of similar size in the US market ($USD6.45M).

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


Leadership Team

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


Board Members

Experienced Board: M's board of directors are considered experienced (6.9 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

Macy's, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Macy's, Inc.
  • Ticker: M
  • Exchange: NYSE
  • Founded: 1830
  • Industry: Department Stores
  • Sector: Retail
  • Implied Market Cap: US$6.865b
  • Shares outstanding: 299.27m
  • Website: https://www.macysinc.com

Number of Employees


Location

  • Macy's, Inc.
  • 151 West 34th Street
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:37
End of Day Share Price2022/01/21 00:00
Earnings2021/10/30
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.