macy’s, Inc.
By S a n die W i l ey
macy’s, Inc.
Macy’s, Inc. is one of the nation’s premier omnichannel
retailers, with fiscal 2014 sales of $28.1 billion. The
company operates the Macy’s and Bloomingdale’s brands
with about 825 stores in 45 states, the District of
Columbia, Guam and Puerto Rico under the names of
Macy’s and Bloomingdale’s,
themacys.com and bloomingdales.com websites, and 13
Bloomingdale’s outlet stores. Bloomingdale’s in Dubai is
operated by Al Tayer Group LLC under a license
agreement. Macy’s, Inc.’s diverse workforce includes
approximately 172,500 employees. Prior to June 1, 2007,
Macy’s Inc. was known as Federated Department Stores,
Inc. The company’s shares are traded under the symbol
“M” on the New York Stock Exchange.
Direct Competitor Comparison
M
DDS
PVT1
PVT2
Industry
Market Cap:
22.79B
5.57B
N/A
N/A
6.32B
Employees:
166,900
21,600
116,0001
13,9001
13.79K
0.02
0.05
N/A
N/A
0.00
28.10B
6.78B
12.98B1
3.15B1
1.76B
0.40
0.37
N/A
N/A
0.36
3.92B
816.90M
N/A
N/A
103.90M
0.10
0.08
N/A
N/A
0.06
Net Income (ttm):
1.53B
331.85M
N/A
62.90M1
N/A
EPS (ttm):
P/E (ttm):
4.22
15.83
7.79
17.38
N/A
N/A
N/A
N/A
0.11
24.91
PEG (5 yr expected):
1.35
1.40
N/A
N/A
1.36
P/S (ttm):
0.81
0.83
N/A
N/A
5.68
Qtrly Rev Growth (yoy):
Revenue (ttm):
Gross Margin (ttm):
EBITDA (ttm):
Operating Margin (ttm):
DDS = Dillard's Inc.
Pvt1 = J. C. Penney Corporation, Inc. (privately held)
Pvt2 = Saks Incorporated (privately held)
Industry = Department Stores
1
= As of 2013
EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
EPS – Earnings Per Share
P/E – Price –Earnings Ratio
PEG – Price/Earnings Ratio divided by year-over-year earnings growth rate (the lower the better)
P/S – Price to Sales Ratio
ttm - Trailing twelve months
Dollars in Millions
Revenue Trend
$30,000.00
6.00%
$25,000.00
5.00%
$20,000.00
4.00%
$15,000.00
3.00%
$10,000.00
2.00%
$5,000.00
1.00%
$0.00
0.00%
2009
2010
Net Sales
2011
Net Income
2012
Cost of Goods Sold
2013
Profit Margin
2014
Market Share Price VS Earnings per Share
$70.00
$60.00
$50.00
Dollars
$40.00
$30.00
$20.00
$10.00
$0.00
2009
2010
2011
Basic earnings per share
2012
Market Share price
2013
2014
Interest Expense Trend
9000.00
6.00
8000.00
5.00
7000.00
4.00
Dollars in Millions
6000.00
5000.00
3.00
4000.00
2.00
3000.00
2000.00
1.00
1000.00
0.00
0.00
2009
2010
2011
2012
2013
2014
-1000.00
-1.00
Short-term debt
Long-Term Debt
Interest expense
Income before interest expense and income taxes
Times Interest earned
Working Capital VS Long-Term Debt
$9,000.00
1.60
$8,000.00
1.55
$7,000.00
1.50
Dollars in Millions
$6,000.00
$5,000.00
1.45
$4,000.00
1.40
$3,000.00
1.35
$2,000.00
1.30
$1,000.00
$-
1.25
2009
2010
Working Capital
2011
Long-term Debt
2012
2013
Current Ratio
2014
The Street Analysis
Macy's Inc - M - EQUITY
Reviewed By: TheStreet Ratings on April 30, 2015.
Report Summary: TheStreet Ratings team rates Macy's
Inc as a Buy with a ratings score of A.
Report Snippet: We rate MACY'S INC (M) a BUY. This is
based on the convergence of positive investment
measures, which should help this stock outperform the
majority of stocks that we rate. The company's strengths
can be seen in multiple areas, such as its revenue growth,
notable return on equity, solid stock price performance,
growth in earnings per share and expanding profit
margins. We feel these strengths outweigh the fact that
the company has had generally high debt management
risk by most measures that we evaluated.
Rating: 4.67 out of 5, 'A' Buy.
You can view the full analysis from the report here:
M Rating Report
Other Opinions
Guru Rating Scorecard
P/E Growth Investor Peter Lynch
M gets a 72% rating based on Peter Lynch's methodology.
Value Investor Benjamin Graham
M gets a 43% rating based on Benjamin Graham's methodology.
Momentum Strategy Investor Validea
M gets a 57% rating based on Validea Momentum methodology.
Growth/Value Investor James O'Shaughnessy
M gets a 100% rating based on James O'Shaughnessy's methodology.
Small Cap Growth Investor Motley Fool
M gets a 59% rating based on Motley Fool's methodology.
Contrarian Investor David Dreman
M gets a 50% rating based on David Dreman's methodology.
Growth/Value Investor Martin Zweig
M gets a 62% rating based on Martin Zweig's methodology.
Price/Sales Investor Kenneth Fisher
M gets a 60% rating based on Kenneth Fisher's methodology.
Recommedation
Macy’s Inc. has seen an increase in sales and income over the last few years.
They have covered their expenses and have increased their earnings per
share. Recent news indicate Macy’s venturing into the Outlet market. If this
venture is successful, Macy’s should expect to see a significant increase in
sales and income. Macy’s is currently carrying a lot of debt. It is therefore
that I would only recommend Macy’s as a buy for those who are willing to
take a slight risk.