Nordstrom Stock Analysis, Valuation (NYSE:JWN)

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$46.28 $0.06 (0.13%) JWN stock closing price Sep 21, 2017 (Closing)
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Nordstrom
Updated on : Sep 21, 2017
previous close
JWN 46.3 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
6.1%
Operating Profit
Operating Margin:
5.7%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.74B
Debt/Equity Ratio:
 3.49
Compared to the industry
Cash Flow
Operating cash flow:
$485M
Net Income:
$110M
Dividend Yield
JWN dividend yield:
3.2%
PROS      CONS
Recent Growth
Long Term Growth
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
JWN PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.7%
Return on Equity:
44.1%
Free Cash Flow Margin:
7.8%
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Nordstrom Stock Analysis

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View Nordstrom stock analysis video. This is our analyst opinion covering the buy and sell arguments for JWN stock.

Nordstrom, Inc. Stock Rating 3.1/5

Our Nordstrom stock opinion is based on fundamentals of the company. This Nordstrom stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy JWN stock?

  • Nordstrom sales grew by 3.9% year on year in 2018 Q2.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 6.1%.
  • The company has an operating cash flow which is 4.4 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 14.1 is attractive when compared with the industry average PE ratio of 17.5.
  • When compared with the Retail-Apparel-Shoe industry average PS ratio of 0.7, the price-to-sales ratio of 0.5 for JWN stock is attractive.
  • Nordstrom's return on invested capital of 12.7% is good.
  • The LTM ROE of 44.1% for Nordstrom is attractive.
  • The company has a healthy free cash flow margin of 7.8%.

Should you sell JWN stock?

  • Nordstrom has a debt/equity ratio of  3.49, which is worse than the average in the Retail-Wholesale sector.

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