company background image
M

Macy'sNYSE:M Stock Report

Market Cap

US$8.2b

7D

17.3%

1Y

304.1%

Updated

20 Oct, 2021

Data

Company Financials +
M fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends4/6

M 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

Price History & Performance

Summary of all time highs, changes and price drops for Macy's
Historical stock prices
Current Share PriceUS$26.35
52 Week HighUS$6.01
52 Week LowUS$28.41
Beta2.09
1 Month Change22.16%
3 Month Change55.37%
1 Year Change304.14%
3 Year Change-18.22%
5 Year Change-26.70%
Change since IPO205.51%

Recent News & Updates

Oct 16
Macy's' (NYSE:M) Returns On Capital Not Reflecting Well On The Business

Macy's' (NYSE:M) Returns On Capital Not Reflecting Well On The Business

When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in...

Oct 14

Macy's: Polaris Is Working, Better Customers And Wider Margins

Polaris is a multi-year long overhaul of the business to increase shareholder value and better position the business in a modern retail environment. Early results were hard to gauge as a result of the pandemic, but as the worst of covid gets further behind us, we can see some improvements. Margins are expanding, the customer base is growing and becoming more dedicated. The market has not properly reacted to the improvement in Macy's business.

Sep 28
Macy's, Inc.'s (NYSE:M) Intrinsic Value Is Potentially 29% Above Its Share Price

Macy's, Inc.'s (NYSE:M) Intrinsic Value Is Potentially 29% Above Its Share Price

In this article we are going to estimate the intrinsic value of Macy's, Inc. ( NYSE:M ) by taking the expected future...

Shareholder Returns

MUS Multiline RetailUS Market
7D17.3%5.4%3.8%
1Y304.1%31.3%31.5%

Return vs Industry: M exceeded the US Multiline Retail industry which returned 31.1% over the past year.

Return vs Market: M exceeded the US Market which returned 30.5% over the past year.

Price Volatility

Is M's price volatile compared to industry and market?
M volatility
M Beta2.09
Industry Beta0.96
Market Beta1

Stable Share Price: M is more volatile than 75% 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, but is still higher than 75% of US stocks.

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$8.16b
Earnings (TTM)US$516.00m
Revenue (TTM)US$21.93b

15.8x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
M income statement (TTM)
RevenueUS$21.93b
Cost of RevenueUS$13.31b
Gross ProfitUS$8.62b
ExpensesUS$8.11b
EarningsUS$516.00m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.67
Gross Margin39.31%
Net Profit Margin2.35%
Debt/Equity Ratio153.9%

How did M perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

9%

Payout Ratio

Valuation

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

21.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M ($26.35) is trading below our estimate of fair value ($33.61)

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 (15.8x) compared to the US Multiline Retail industry average (17.7x).

PE vs Market: M is good value based on its PE Ratio (15.8x) compared to the US market (18.1x).


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 (2.6x) compared to the US Multiline Retail industry average (3.1x).


Future Growth

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

-4.6%

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 (-4.6% per year).

Earnings vs Market: M's earnings are forecast to decline over the next 3 years (-4.6% per year).

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

Revenue vs Market: M's revenue (0.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: M's revenue (0.6% 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%).


Past Performance

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

-46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M has a large one-off loss of $325.0M impacting its July 31 2021 financial results.

Growing Profit Margin: M became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: M's earnings have declined by 46.5% 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 (8.4%).


Return on Equity

High ROE: M's Return on Equity (16.4%) is considered low.


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 debt to equity ratio (153.9%) is considered high.

Reducing Debt: M's debt to equity ratio has reduced from 187.7% to 153.9% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (33.5%).

Interest Coverage: M's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: M's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: M's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 (9.1%), 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 (26.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Jeff Gennette (60 yo)

4.58yrs

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 ($USD11.08M) is above average for companies of similar size in the US market ($USD6.27M).

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 (2.5 years average tenure).


Board Members

Experienced Board: M's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: M insiders have only sold shares 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
  • Market Cap: US$8.161b
  • Shares outstanding: 309.70m
  • 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 Analysis2021/10/20 23:15
End of Day Share Price2021/10/20 00:00
Earnings2021/07/31
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.