M : NYSE : Services
$39.27 up 0.02 | 0.05%
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 7,447,600
08/25/16 - 3:59 PM ET

Financial Analysis


MACY'S INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. MACY'S 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 16.47% 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 FY16 Q2 FY15
Net Sales ($mil)5866.06104.0
EBITDA ($mil)383.0697.0
EBIT ($mil)123.0436.0
Net Income ($mil)11.0217.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1000.0843.0
Total Assets ($mil)19706.020116.0
Total Debt ($mil)7630.07264.0
Equity ($mil)4046.04844.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin40.8840.86
EBITDA Margin6.5211.41
Operating Margin2.17.14
Sales Turnover1.341.39
Return on Assets4.07.05
Return on Equity19.529.31
Debt Q2 FY16 Q2 FY15
Current Ratio1.351.49
Debt/Capital0.650.6
Interest Expense0.094.0
Interest Coverage0.04.64


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)308.5330.98
Div / share0.380.36
EPS0.030.64
Book value / share13.1214.64
Institutional Own % n/a n/a
Avg Daily Volume7610786.05397525.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 23.96 for the Multiline Retail industry and a discount compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 3.07 indicates valuation on par with the S&P 500 average of 2.83 and a discount versus the industry average of 4.19. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MACY'S INC proves to trade 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
M 16.16 Peers 23.96   M 5.74 Peers 75.41

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

M 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.

M 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
M 11.57 Peers 21.71   M 3.72 Peers 1.33

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

M is trading at a significant discount to its peers.

 

Premium. 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.

M trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
M 3.07 Peers 4.19   M -38.83 Peers -4.43

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

M is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, M 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
M 0.47 Peers 0.80   M -5.44 Peers 19.25

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.

M 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.

M significantly trails its peers on the basis of sales growth

 

 

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