NYSE:M

Stock Analysis Report

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Market Cap

US$5.9b

Last Updated

2021/06/24 02:14 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: M is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: M's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

M

1.7%

US Multiline Retail

0.5%

US Market


1 Year Return

177.0%

M

56.7%

US Multiline Retail

42.6%

US Market

Return vs Industry: M exceeded the US Multiline Retail industry which returned 56.7% over the past year.

Return vs Market: M exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

MIndustryMarket
7 Day0.8%1.7%0.5%
30 Day4.9%4.3%1.9%
90 Day14.3%13.1%7.9%
1 Year177.0%177.0%58.2%56.7%44.9%42.6%
3 Year-42.9%-50.4%105.9%94.2%64.4%54.1%
5 Year-28.0%-43.6%142.1%118.9%128.3%102.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M ($18.78) is trading below our estimate of fair value ($25.92)

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


Price To Earnings Ratio

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

PE vs Market: M 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 M's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: M is good value based on its PB Ratio (2.2x) compared to the US Multiline Retail industry average (3.2x).


Future Growth

How is Macy's forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: M's revenue (1.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: M's revenue (1.4% 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 (15.8%).


Past Performance

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

-50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M is currently unprofitable.

Growing Profit Margin: M is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: M is unprofitable, and losses have increased over the past 5 years at a rate of 50.8% per year.

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

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


Return on Equity

High ROE: M has a negative Return on Equity (-9.72%), as it is currently unprofitable.


Financial Health

How is Macy's's financial position?


Financial Position Analysis

Short Term Liabilities: M's short term assets ($7.2B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: M's short term assets ($7.2B) do not cover its long term liabilities ($9.9B).


Debt to Equity History and Analysis

Debt Level: M's debt to equity ratio (170.7%) is considered high.

Reducing Debt: M's debt to equity ratio has reduced from 183% to 170.7% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (28.6%).

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


Balance Sheet


Dividend

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

2.14%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate M'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 M's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of M'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?

1.4yrs

Average management tenure


CEO

Jeff Gennette (59 yo)

4.25yrs

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 ($USD11.08M) is above average for companies of similar size in the US market ($USD6.60M).

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


Leadership Team

Experienced Management: M's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: M's board of directors are considered experienced (6.3 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Macy's, Inc.
  • Ticker: M
  • Exchange: NYSE
  • Founded: 1830
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: US$5.857b
  • Shares outstanding: 311.87m
  • Website: https://www.macysinc.com

Number of Employees


Location

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

Listings


Biography

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 app...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 02:14
End of Day Share Price2021/06/23 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.