Macy's, Inc. (M) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Revolve Group, Inc.

Betterware de México SAB de CV

Dillard's, Inc.

Macy's, Inc.

Ollie's Bargain Outlet Holdings, Inc.

Nordstrom, Inc.

Kohl's Corp.

Wayfair, Inc.

Qurate Retail, Inc.

Why is Macy's, Inc. ?

High Management Efficiency with a high ROCE of 20.74%

Company has a low Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 20.74%

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 157.07 MM has Grown at -29.65%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.11 times

With ROCE of 13.95%, it has a very attractive valuation with a 0.87 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.75%, its profits have fallen by -36.2%
At the current price, the company has a high dividend yield of 393.2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.77% over the previous quarter.

Market Beating Performance

The stock has generated a return of 44.75% in the last 1 year, much higher than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Macy's, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Macy's, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Macy's, Inc.

30.66%

0.55

52.44%

S&P 500

18.81%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.95%

EBIT Growth (5y)

27.72%

EBIT to Interest (avg)

7.57

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

3.24

Tax Ratio

23.98%

Dividend Payout Ratio

32.41%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

20.74%

ROE (avg)

26.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.14

EV to EBIT

7.63

EV to EBITDA

3.84

EV to Capital Employed

1.10

EV to Sales

0.30

PEG Ratio

Dividend Yield

4.15%

ROCE (Latest)

14.38%

ROE (Latest)

16.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,555 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 433.17%

NET PROFIT(Q)

At USD 31 MM has Grown at 198.08%

RAW MATERIAL COST(Y)

Fallen by -0.74% (YoY

PRE-TAX PROFIT(Q)

At USD 25 MM has Grown at 92.31%

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.16 times

EPS(Q)

Lowest at USD 0.04

Here's what is working for Macy's, Inc.

Net Profit

At USD 31 MM has Grown at 198.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 1,555 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 433.17% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Pre-Tax Profit

At USD 25 MM has Grown at 92.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -0.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 235 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Macy's, Inc.

EPS

Lowest at USD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 2.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at USD 3.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income