Nordstrom Inc

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JWN : NYSE : Services
$45.69 | %
Today's Range: 44.14 - 45.97
Avg. Daily Volume: 3175400.0
02/17/17 - 4:00 PM ET

Financial Analysis


NORDSTROM INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NORDSTROM INC has very weak liquidity. Currently, the Quick Ratio is 0.23 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 38.92% 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 FY16 Q3 FY15
Net Sales ($mil)3541.03328.0
EBITDA ($mil)412.0334.0
EBIT ($mil)251.0187.0
Net Income ($mil)-10.081.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)531.0821.0
Total Assets ($mil)7966.08586.0
Total Debt ($mil)2778.02809.0
Equity ($mil)860.01408.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin40.6940.05
EBITDA Margin11.6310.03
Operating Margin7.095.62
Sales Turnover1.841.66
Return on Assets4.187.86
Return on Equity38.7247.94
Debt Q3 FY16 Q3 FY15
Current Ratio1.041.22
Debt/Capital0.760.67
Interest Expense29.029.0
Interest Coverage8.666.45


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)173.2185.4
Div / share0.375.22
EPS-0.060.42
Book value / share4.977.59
Institutional Own % n/a n/a
Avg Daily Volume3189222.03139722.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 16.72 for the Multiline Retail industry and a discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 8.90 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 3.63. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, NORDSTROM INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JWN 23.63 Peers 16.72   JWN 4.53 Peers 8.80

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

JWN is trading at a significant premium 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JWN 14.34 Peers 19.71   JWN NM Peers 1.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

JWN is trading at a discount to 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JWN 8.90 Peers 3.63   JWN -46.42 Peers 32.43

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 0.52 Peers 0.67   JWN 2.42 Peers 11.92

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.

JWN is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

JWN significantly trails its peers on the basis of sales growth

 

 

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