Home Sectors Consumer Cyclical Stock Valuation: Macy's Inc (NYSE: M)

Stock Valuation: Macy's Inc (NYSE: M)

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Macy's Inc is part of the consumer cyclical sector and retail apparel and specialty industry. The company CEO is Jeffrey Gennette. Macy's Inc is an omnichannel retailer. It sells merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

Previous Intraday Trading Performance:

The M stock showed a previous change of -0.33% with an open at 40.00 and a close of 39.75. It reached an intraday high of 40.37 and a low of 39.50.

SeekingAlpha:  Rhizome Partners Investor Letter Q1 2018

Liquidity:

The stock has a market cap of $12.2b with 306.4m shares outstanding, of which the float is 305.0m shares. Trading volume reached 8,137,958 shares compared to its average volume of 12,348,872 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Macy's Inc shares returned -0.75% and in the past 30 trading days it returned 27.94%. Over three months, it changed 39.98%. In one year it has changed 86.38% and within that year its 52-week high was 41.33 and its 52-week low was 17.41. M stock is 128.38% above its 52 Week Low.

Our calculations show a 200 day moving average of 25.65 and a 50 day moving average of 32.17. Currently M stock is trading 54.99% above its 200 day moving average.

SeekingAlpha:  Rhizome Partners Investor Letter Q1 2018

Earnings:

The last annual fiscal EPS for the company was reported at 5.07 that ended on 2018-01-31, which according to the previous close, that is a PE of 7.84. Based on 8 analyst estimates, the consensus EPS for the next quarter is 0.35. The TTM EPS is 2.97, which comes to a TTM PE of 13.38. Historically, the PE high was 20.50 and the PE low was 7.84. If the stock reached its PE low, that would represent a price of 23.29, which is a decrease of -41.40%.

The following are the last four quarter reported earnings per share:
04-30-2018:  0.48
01-31-2018:  2.82
10-31-2017:  0.23
07-31-2017:  0.48

The dividend per share is currently 1.51, which is a dividend yield of 3.79%. Also, the payout ratio is 50.84%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 54.03, which means it is possibly undervalued and has a margin of safety of 26.43%

Indicators to Watch:

Based on the latest filings, there is 83.00% of institutional ownership. Short-interest is 44,318,729, which is 14.47% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.13. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.79

PR Newswire:  M&T Bank Earns 19th Consecutive 'Outstanding' Rating on Community Reinvestment Act Exam

Fundamental Indicators:

Based on last reported financials, the company's return on equity is 30.37%, return on assets is 7.78%, profit margin is 6.17%, price-to-sales is 0.49 and price-to-book is 2.10.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 0  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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