0.79 | 1.65%
MACY'S INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. MACY'S INC has very weak liquidity. Currently, the Quick Ratio is 0.40 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.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.02% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 6387.0 | 6143.0 |
| EBITDA ($mil) | 686.0 | 647.0 |
| EBIT ($mil) | 435.0 | 391.0 |
| Net Income ($mil) | 217.0 | 181.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1752.0 | 1891.0 |
| Total Assets ($mil) | 21040.0 | 21277.0 |
| Total Debt ($mil) | 6921.0 | 6957.0 |
| Equity ($mil) | 5971.0 | 6033.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 38.77 | 38.84 |
| EBITDA Margin | 10.74 | 10.53 |
| Operating Margin | 6.81 | 6.36 |
| Sales Turnover | 1.33 | 1.25 |
| Return on Assets | 6.51 | 6.13 |
| Return on Equity | 22.96 | 21.64 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.57 | 1.49 |
| Debt/Capital | 0.54 | 0.54 |
| Interest Expense | 0.0 | 109.0 |
| Interest Coverage | 0.0 | 3.59 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 383.7 | 414.6 |
| Div / share | 0.2 | 0.2 |
| EPS | 0.55 | 0.43 |
| Book value / share | 15.56 | 14.55 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4509571.0 | 5565479.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 15.93 for the Multiline Retail industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 3.08 indicates a premium versus the S&P 500 average of 2.44 and a discount versus the industry average of 3.42. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MACY'S INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| M 14.04 | Peers 15.93 | M 8.02 | Peers 11.21 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. M 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. M is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| M 10.77 | Peers 15.48 | M 0.64 | Peers 2.57 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. M is trading at a discount to its peers. |
Discount. 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. M trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| M 3.08 | Peers 3.42 | M 12.17 | Peers 4.48 | |||||||||||||||||||||
|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. M is trading at a valuation on par with its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. M is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| M 0.66 | Peers 0.75 | M 4.76 | Peers 5.10 | |||||||||||||||||||||
|
Discount. 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. M is trading at a discount to its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. M is keeping pace with its peers on the basis of sales growth. |
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