NYSE:M

Stock Analysis Report

Executive Summary

Macy's, Inc., an omnichannel retail organization, operates stores, Websites, and mobile applications.

Snowflake

Fundamentals

Undervalued established dividend payer.


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


Market Performance


7 Day Return

-3.8%

M

0.7%

US Multiline Retail

0.4%

US Market


1 Year Return

-53.2%

M

17.2%

US Multiline Retail

6.9%

US Market

Return vs Industry: M underperformed the US Multiline Retail industry which returned 17.2% over the past year.

Return vs Market: M underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

MIndustryMarket
7 Day-3.8%0.7%0.4%
30 Day-1.9%4.6%-1.1%
90 Day-31.6%13.7%-0.5%
1 Year-50.0%-53.2%20.2%17.2%9.3%6.9%
3 Year-50.9%-58.6%56.8%45.1%45.8%36.4%
5 Year-67.7%-74.4%57.7%37.7%62.9%45.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: M ($15.12) is trading below our estimate of fair value ($31.74)

Significantly Undervalued: 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 (4.6x) compared to the Multiline Retail industry average (12.3x).

PE vs Market: M is good value based on its PE Ratio (4.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (0.7x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

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

-8.3%

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 (-8.3% per year).

Earnings vs Market: M's earnings are forecast to decline over the next 3 years (-8.3% per year).

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

Revenue vs Market: M's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: M's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: M's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

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

-2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: M's earnings have declined by -2.9% per year over the past 5 years.

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

Earnings vs Industry: M had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Multiline Retail industry average (-14.9%).


Return on Equity

High ROE: M's Return on Equity (16.2%) is considered low.


Return on Assets

ROA vs Industry: M's Return on Assets is below or equal to the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: M's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Macy's's financial position?


Financial Position Analysis

Short Term Liabilities: M's short term assets ($6.5B) exceeds its short term liabilities ($4.4B)

Long Term Liabilities: M's short term assets (6.5B) do not cover its long term liabilities (10.0B)


Debt to Equity History and Analysis

Debt Level: M's debt to equity ratio (74.2%) is considered high

Reducing Debt: M's debt to equity ratio has reduced from 124% to 74.2% over the past 5 years.

Debt Coverage: M's debt is well covered by operating cash flow (32.9%).

Interest Coverage: M's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: M's debt is covered by short term assets (assets are 1.396920x debt).


Next Steps

Dividend

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

9.99%

Current Dividend Yield


Dividend Yield vs Market

company10.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years10.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: M's dividend (9.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: M's dividend (9.99%) is in the top 25% of dividend payers in the US market (3.73%)

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 reasonably low payout ratio (45.5%), M's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: M's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

What is the CEO of Macy's's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Jeff Gennette (58yo)

2.6yrs

Tenure

US$12,733,691

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Jeff's total compensation ($USD12.73M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.1yrs

Average Tenure

56yo

Average Age

Experienced Management: M's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: M's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: M insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,25019 Aug 19
Joyce Roché
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$16.25
BuyUS$106,85028 May 19
Harry Lawton
EntityIndividual
Role
President
President
Shares5,000
Max PriceUS$21.37
BuyUS$216,26422 May 19
Francis Blake
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$21.63
BuyUS$109,78521 May 19
Jeffrey Gennette
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$21.96
BuyUS$100,10819 Nov 18
William Lenehan
EntityIndividual
Shares3,154
Max PriceUS$31.74

Ownership Breakdown


Management Team

  • Elisa Garcia C. (61yo)

    Chief Legal Officer

    • Tenure: 3.1yrs
    • Compensation: US$2.99m
  • R.B. Harrison (56yo)

    Chief Operations Officer

    • Tenure: 2.1yrs
  • Jeff Gennette (58yo)

    Chairman & CEO

    • Tenure: 2.6yrs
    • Compensation: US$12.73m
  • Paula Price (58yo)

    CFO & Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$4.08m
  • Rich Lennox (54yo)

    Chief Marketing Officer

    • Tenure: 3.1yrs
  • Cheryl Heinonen

    Senior Vice President of Corporate Communications

    • Tenure: 2.8yrs
  • Hal Lawton (45yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$7.28m
  • Danielle Kirgan (43yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 2yrs
    • Compensation: US$3.14m
  • Mike McGuire

    Head of Investor Relations

    • Tenure: 0.5yrs
  • Naveen Krishna

    Chief Technology Officer

    • Tenure: 1.3yrs

Board Members

  • Frank Blake (70yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$256.99k
  • Joyce Roché (72yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$267.97k
  • Sara Levinson (68yo)

    Independent Director

    • Tenure: 22.4yrs
    • Compensation: US$256.94k
  • Marna Whittington (71yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$336.25k
  • John Bryant (54yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$274.00k
  • Paul Varga (55yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$266.84k
  • Deirdre Connelly (58yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$256.53k
  • Tony Spring (54yo)

    Chairman & CEO of Bloomingdale’s

    • Tenure: 5.7yrs
  • Jeff Gennette (58yo)

    Chairman & CEO

    • Tenure: 2.6yrs
    • Compensation: US$12.73m
  • Leslie Hale (47yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$256.71k

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$4.671b
  • Shares outstanding: 308.91m
  • Website: https://www.macysinc.com

Number of Employees


Location

  • Macy's, Inc.
  • 7 West Seventh Street
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
M *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1992
FDODB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1992
MNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1992
MACYWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1992
0JXDLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1992
MACY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLApr 2016

Biography

Macy's, Inc., an omnichannel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, including apparel and accessories for men, women, and childre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:04
End of Day Share Price2019/10/18 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.