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Nordstrom Inc
JWN : NYSE : Services
$75.23 -0.10 | -0.13%
Today's Range: 75.01 - 76.01
Avg. Daily Volume: 1,177,300
05/22/15 - 4:01 PM ET

Financial Analysis


NORDSTROM INC's gross profit margin for the first 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 average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)3215.02931.0
EBITDA ($mil)382.0383.0
EBIT ($mil)245.0265.0
Net Income ($mil)128.0140.0


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)769.01015.0
Total Assets ($mil)9562.08633.0
Total Debt ($mil)3146.03117.0
Equity ($mil)2555.02036.0


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin42.0841.86
EBITDA Margin11.8813.06
Operating Margin7.629.04
Sales Turnover1.441.47
Return on Assets7.48.44
Return on Equity27.7135.8
Debt Q1 FY15 Q1 FY14
Current Ratio1.841.98
Debt/Capital0.550.6
Interest Expense33.035.0
Interest Coverage7.427.57


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)191.0189.3
Div / share0.370.33
EPS0.660.72
Book value / share13.3810.76
Institutional Own % n/a n/a
Avg Daily Volume1265472.01266264.0

Valuation


BUY. NORDSTROM INC's P/E ratio indicates a discount compared to an average of 22.56 for the Multiline Retail industry and a value on par with the S&P 500 average of 20.83. Conducting a second comparison, its price-to-book ratio of 5.63 indicates a significant premium versus the S&P 500 average of 2.88 and a premium versus the industry average of 4.30. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JWN 20.58 Peers 22.56   JWN 11.84 Peers 12.01

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

JWN is trading at a valuation on par with its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JWN 18.15 Peers 18.42   JWN 25.73 Peers 3.70

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.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JWN 5.63 Peers 4.30   JWN -1.35 Peers 8.24

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JWN 1.04 Peers 0.89   JWN 8.39 Peers 5.58

Premium. 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 premium to 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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