Nordstrom Inc

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JWN : NYSE : Services
$47.62 | %
Today's Range: 47.2008 - 47.98
Avg. Daily Volume: 3254400.0
04/21/17 - 4:02 PM ET

Financial Analysis


NORDSTROM INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.40 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q4 FY16 Q4 FY15
Net Sales ($mil)4316.04193.0
EBITDA ($mil)567.0476.0
EBIT ($mil)402.0324.0
Net Income ($mil)201.0180.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1007.0595.0
Total Assets ($mil)7858.07698.0
Total Debt ($mil)2774.02805.0
Equity ($mil)870.0871.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin40.839.23
EBITDA Margin13.1311.35
Operating Margin9.317.73
Sales Turnover1.881.88
Return on Assets4.57.79
Return on Equity40.6868.88
Debt Q4 FY16 Q4 FY15
Current Ratio1.071.04
Debt/Capital0.760.76
Interest Expense31.031.0
Interest Coverage12.9710.45


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)170.0173.5
Div / share0.370.37
EPS1.151.0
Book value / share5.125.02
Institutional Own % n/a n/a
Avg Daily Volume3266503.03542599.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 16.41 for the Multiline Retail industry and a value on par with the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 9.35 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 3.39. 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 23.70 Peers 16.41   JWN 4.94 Peers 8.27

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 15.80 Peers 14.88   JWN 0.53 Peers 10.87

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 9.35 Peers 3.39   JWN -36.28 Peers 29.03

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 0.55 Peers 0.63   JWN 2.21 Peers 6.31

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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