Nordstrom Stock Analysis, Valuation (NYSE:JWN)
Take a look at Amigobulls Nordstrom stock analysis video. Our analyst opinion covering the buy and sell arguments for JWN stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Nordstrom, Inc. Stock Rating 3.2/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for JWN stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Nordstrom valuation analysis. Nordstrom stock rating is our opinion about the business fundamentals of the company.
Should you buy JWN stock?
- The Year Over Year (YoY) revenue growth for Nordstrom was 8.6% in 2018-04.
- The Nordstrom stock currently trades at a price to earnings ratio of 17.4, compared to the sector average of 21.5. We rate this as a positive.
- When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.6 for JWN stock is attractive.
- Nordstrom's return on invested capital of 15.6 is good.
- The LTM ROE of 52.9 for Nordstrom is attractive.
Should you sell JWN stock?
- With a debt/equity ratio of 2.56, Nordstrom is highly leveraged in comparison to Retail-Wholesale peers.
- The company's operations consume more cash than it generates. This is not a healthy sign.
- The company has a negative free cash flow margin of -4.4.
Nordstrom Related Company Stock Videos
Investors can use Amigobulls Nordstrom stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Nordstrom revenue growth and profit or net income are two main metrics which help in identifying whether JWN stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.