Nordstrom Inc

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JWN : NYSE : Services
$44.7 up 0.04 | 0.09%
Today's Range: 44.945 - 45.388
Avg. Daily Volume: 2667100.0
08/16/17 - 9:47 AM ET

Financial Analysis

NORDSTROM INC's gross profit margin for the second quarter of its fiscal year 2017 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 0.36 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 16.22% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)3794.03651.0
EBITDA ($mil)376.0385.0
EBIT ($mil)217.0221.0
Net Income ($mil)110.0117.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)919.0892.0
Total Assets ($mil)8161.08130.0
Total Debt ($mil)2740.02782.0
Equity ($mil)785.0937.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin39.5639.88
EBITDA Margin9.9110.54
Operating Margin5.726.05
Sales Turnover1.841.77
Return on Assets4.465.21
Return on Equity46.3645.25
Debt Q2 FY17 Q2 FY16
Current Ratio1.011.01
Interest Expense28.030.0
Interest Coverage7.757.37

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)166.2173.3
Div / share0.370.37
Book value / share4.725.41
Institutional Own % n/a n/a
Avg Daily Volume2938688.03393825.0


HOLD. This stock's P/E ratio indicates a premium compared to an average of 15.73 for the Multiline Retail industry and a discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 9.50 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 3.36. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JWN 21.27 Peers 15.73   JWN 5.45 Peers 8.05

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
JWN 14.71 Peers 14.44   JWN 0.46 Peers 5.84

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

JWN is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JWN 9.50 Peers 3.36   JWN -10.22 Peers 14.23

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JWN 0.50 Peers 0.65   JWN 4.04 Peers 2.53

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 significantly exceeds its peers.



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