Macy's Stock Analysis (NYSE:M)

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$32.3 $0.48 (1.51%) M stock closing price Feb 17, 2017 (Closing)
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Macy's
Updated on : Feb 17, 2017
previous close
M 32.3 (0%)
S&P 500 2351.2 (0%)
Closing Price On: Feb 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Regional Dept stores
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.1%
Operating Profit
Operating Margin:
5.5%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
7.5B
Debt/Equity Ratio:
 1.98
Compared to the industry
Cash Flow
Operating cash flow:
-$252M
Net Income:
$17M
Dividend Yield
M dividend yield:
4.58%
PROS      CONS
Long Term Growth
ROE
High Dividend Yield
PE Valuation
PS Valuation
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
M PS :
0.4
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7%
Return on Equity:
17%
Free Cash Flow Margin:
-6%
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Macy's Analysis Video

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View Macy's stock analysis video. This is our M analyst opinion covering the buy and sell arguments for M stock.

Macy's Inc Stock Rating (2.8/5)

Our Macy's stock opinion is based on fundamentals of the company. This Macy's stock analysis is based on latest Q3 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy M stock?

  • Revenue growth has been tremendous with a compounded annual growth of over the last 5 years.
  • The price to earnings multiple of 10.1 is attractive when compared with the industry average PE ratio of 20.
  • M stock is trading at a favorable price to sales multiple of 0.4 as against the Retail-Regional Dept stores industry average multiple of 0.8.
  • Macy's's dividend yield of 4.58% is attractive.
  • The LTM ROE of 17% for Macy's is attractive.

Should you sell M stock?

  • Macy's has a debt/equity ratio of  1.98, which is worse than the average in the Retail-Wholesale sector.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -6%.

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