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
Debt/Capital0.780.75
Interest Expense28.030.0
Interest Coverage7.757.37


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)166.2173.3
Div / share0.370.37
EPS0.650.67
Book value / share4.725.41
Institutional Own % n/a n/a
Avg Daily Volume2938688.03393825.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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