Macy's, Inc.

M

Retail-Department Stores

Mkt Cap

$4.098B

PE

5.99

Debt

$3.167B

Cash

$367M

EV

$6.898B

FCF

$567M

Market Cap

$4.098B

P/E Ratio

5.99

Debt

$3.167B

Cash

$367M

EV

$6.898B

FCF

$567M

Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. The company was founded in 1830 and is based in New York, New York.

Sector

10-Q
7/29/23
10-Q
4/29/23
10-K
1/28/23
10-Q
10/29/22
10-Q
7/30/22
10-Q
4/30/22
10-K
1/29/22
10-Q
10/30/21
10-Q
7/31/21
10-Q
5/1/21
10-K
1/30/21
10-Q
10/31/20
10-Q
8/1/20
10-Q
5/2/20
10-K
2/1/20
10-Q
11/2/19
10-Q
8/3/19
10-Q
5/4/19
10-K
2/2/19
10-Q
11/3/18
10-Q
8/4/18
10-Q
5/5/18
10-K
2/3/18
10-Q
10/28/17

DCF

Discounted Cash Flow Valuation of Macy's, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$567M	$531.5M	$498.2M	$467M	$437.7M	$410.3M	$384.6M	$360.5M	$337.9M	$316.7M	$296.9M	$2.969B
DCF		$462.2M	$376.7M	$307M	$250.3M	$204M	$166.3M	$135.5M	$110.5M	$90.03M	$73.39M	$733.9M
Value	$2.91B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -0.77%

Earnings Stability -12%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	01-2015	01-2016	01-2017	02-2018	02-2019	01-2020	01-2021	01-2022	01-2023	TTM
Net Margin	5.4%	4%	2.4%	6.2%	4.4%	2.3%	-23%	5.8%	4.8%	3%
ROA	13%	10%	6.8%	9.5%	9.1%	4.6%	-25%	13%	10%	6.2%
ROE	28%	25%	14%	27%	17%	8.8%	-150%	39%	29%	17%

What is the average Net Margin?

The average Net Margin over the past 5 years is +0.13%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.78%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +3.58%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.37%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -5.53%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.49%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2015	01-2016	01-2017	02-2018	02-2019	01-2020	01-2021	01-2022	01-2023	TTM
Debt FCF	4.58	7.10	5.70	4.04	4.41	6.67	15.62	1.40	4.14	5.59
Debt Equity	1.54	1.80	1.59	1.04	0.74	0.67	1.90	0.91	0.74	0.76
MIN
Graham Stability	-	-	45%	100%	100%	52%	-370%	-	-	-370%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.59.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.01.

What is the Graham’s Stability?

Graham’s Stability measure stands at -3.70.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	01-2016	02-2018	01-2020	01-2022	Trend
Revenue	-1.5%	-0.4%	-0.16%	-0.074%	1.4%
Net Income	1.4%	-5.2%	28%	-18%	-2.7%
Stockholders Equity	-0.58%	-6.4%	-14%	13%	2.3%
FCF	-5.4%	-13%	4.6%	-69%	27%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -0.4%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.39%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -5.18%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.67%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -6.37%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.33%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -12.98%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +27.21%.