Macy's Stock Analysis (NYSE:M)

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$33.17 $0.73 (2.25%) M stock closing price Feb 24, 2017 (Closing)
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Macy's
Updated on : Feb 24, 2017
previous close
M 33.2 (0%)
S&P 500 2367.3 (0%)
Closing Price On: Feb 24, 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:
4.46%
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 (2.7/5)

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?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 0.1%.
  • M stock is trading at an earnings multiple of 10.4 which is better than the industry average of 19.7.
  • The lower PS ratio 0.4 for M stock versus Retail-Regional Dept stores industry average of 0.8 is a positive for the company.
  • The company has a healthy dividend yield of 4.46%.
  • The LTM ROE of 17% for Macy's is attractive.

Should you sell M stock?

  • With a debt/equity ratio of  1.98, Macy's is highly leveraged in comparison to Retail-Wholesale peers.
  • Macy's has a negative FCF (Free Cash Flow) margin of -6%.

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