Nordstrom Inc

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JWN : NYSE : Services
$43.27 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 4,622,200
07/28/16 - 4:02 PM ET

Financial Analysis


NORDSTROM INC's gross profit margin for the first 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 0.24 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, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 65.75% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)3249.03215.0
EBITDA ($mil)261.0382.0
EBIT ($mil)106.0245.0
Net Income ($mil)46.0128.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)470.0769.0
Total Assets ($mil)7699.09562.0
Total Debt ($mil)2786.03146.0
Equity ($mil)875.02555.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin40.1442.08
EBITDA Margin8.0311.88
Operating Margin3.267.62
Sales Turnover1.881.44
Return on Assets6.727.4
Return on Equity59.227.71
Debt Q1 FY16 Q1 FY15
Current Ratio1.021.84
Debt/Capital0.760.55
Interest Expense31.033.0
Interest Coverage3.427.42


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)173.4191.0
Div / share0.370.37
EPS0.260.66
Book value / share5.0513.38
Institutional Own % n/a n/a
Avg Daily Volume4450942.03491707.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 22.96 for the Multiline Retail industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 8.17 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 4.02. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JWN 14.89 Peers 22.96   JWN 2.94 Peers 67.25

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

JWN is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JWN 14.37 Peers 25.37   JWN NM Peers 2.62

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 significant 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 8.17 Peers 4.02   JWN -24.32 Peers 5.45

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 0.49 Peers 0.81   JWN 4.93 Peers 20.30

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 significant 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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