Nordstrom Inc

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JWN : NYSE : Services
$47.7 -0.3 | -0.62%
Today's Range: 47.8 - 48.3
Avg. Daily Volume: 3452500.0
06/26/17 - 10:21 AM ET

Financial Analysis


NORDSTROM INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. NORDSTROM INC has very weak liquidity. Currently, the Quick Ratio is 0.27 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 22.62% 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 FY17 Q1 FY16
Net Sales ($mil)3354.03249.0
EBITDA ($mil)312.0261.0
EBIT ($mil)151.0106.0
Net Income ($mil)63.046.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)653.0470.0
Total Assets ($mil)7771.07699.0
Total Debt ($mil)2742.02786.0
Equity ($mil)677.0875.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin40.5540.14
EBITDA Margin9.38.03
Operating Margin4.53.26
Sales Turnover1.911.88
Return on Assets4.776.72
Return on Equity54.859.2
Debt Q1 FY17 Q1 FY16
Current Ratio1.011.02
Debt/Capital0.80.76
Interest Expense48.031.0
Interest Coverage3.153.42


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)166.0173.4
Div / share0.370.37
EPS0.370.26
Book value / share4.085.05
Institutional Own % n/a n/a
Avg Daily Volume3426651.03325115.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 15.05 for the Multiline Retail industry and a discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 11.64 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 3.41. 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 22.29 Peers 15.05   JWN 5.14 Peers 7.35

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 15.57 Peers 14.11   JWN 0.48 Peers 3.76

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

JWN is trading at a premium 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.

JWN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JWN 11.64 Peers 3.41   JWN -23.11 Peers 7.34

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 0.53 Peers 0.61   JWN 2.70 Peers 2.42

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

JWN has a sales growth rate that exceeds its peers.

 

 

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