NORDSTROM INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. NORDSTROM INC has very weak liquidity. Currently, the Quick Ratio is 0.32 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 38.08% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||3328.0||3140.0|
|Net Income ($mil)||81.0||142.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||821.0||433.0|
|Total Assets ($mil)||8586.0||9269.0|
|Total Debt ($mil)||2809.0||3127.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||40.05||41.75|
|Return on Assets||7.86||7.9|
|Return on Equity||47.94||32.23|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||185.4||190.1|
|Div / share||5.22||0.33|
|Book value / share||7.59||11.96|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2325110.0||1308033.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.23 for the Multiline Retail industry and a discount compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 7.32 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 3.48. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, NORDSTROM INC seems to be trading at a discount to investment alternatives within the industry.
|JWN 15.93||Peers 19.23||JWN 4.24||Peers 10.38|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
JWN is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
JWN is trading at a significant discount to its peers.
|JWN 15.23||Peers 15.96||JWN NM||Peers 3.19|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
JWN is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
JWN's negative PEG ratio makes this valuation measure meaningless.
|JWN 7.32||Peers 3.48||JWN -7.43||Peers 4.40|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
JWN is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, JWN is expected to significantly trail its peers on the basis of its earnings growth rate.
|JWN 0.72||Peers 0.73||JWN 8.44||Peers 5.28|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
JWN is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
JWN has a sales growth rate that significantly exceeds its peers.
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