Macy's Inc (M, Financial) has recently witnessed a notable uptick in its stock performance, with a 6.66% gain over the past week and an impressive 10.58% gain over the past three months. The current market capitalization stands at $5.91 billion, with the stock price at $21.55. When compared to the GF Value of $20.94, Macy's is currently deemed to be Fairly Valued, a shift from its previous status of Modestly Undervalued when the GF Value was at $20.63. This change in valuation indicates a positive market sentiment towards the company's future prospects.
Introduction to Macy's Inc
Macy's Inc, a stalwart in the retail - cyclical industry, has a rich history dating back to 1858. Headquartered in New York City, the company boasts a substantial footprint with approximately 550 Macy's stores, nearly 60 Bloomingdale's locations, and 158 Bluemercury specialty beauty stores. Macy's also has a strong online presence and international licensing agreements. The company's product mix is diverse, with women's apparel, accessories, shoes, cosmetics, and fragrances accounting for 61% of its 2022 sales. This broad offering has helped Macy's maintain its position in the competitive retail landscape.
Assessing Macy's Profitability
Macy's Inc holds a Profitability Rank of 7/10, reflecting its robust position within the industry. The company's Operating Margin is at 5.09%, surpassing 59.15% of 1,109 companies in the same sector. Additionally, Macy's ROE of 2.53% and ROA of 0.62% are better than 40% and 38.32% of their industry peers, respectively. The ROIC stands at a commendable 8.82%, outperforming 70.52% of competitors. With nine years of profitability over the past decade, Macy's demonstrates a consistent ability to generate earnings.
Growth Trajectory of Macy's Inc
The Growth Rank for Macy's is currently at 4/10. The company has experienced a 13.80% 3-Year Revenue Growth Rate per Share, outpacing 73.31% of 1,038 companies in the industry. However, the 5-Year Revenue Growth Rate per Share is more modest at 2.40%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -2.61%, which, while not as robust, still fares better than 10.09% of the industry. The EPS without NRI Growth Rate (Future 3Y To 5Y Est) is estimated at -1.23%, indicating some challenges in maintaining earnings growth in the near future.
Influential Shareholders in Macy's Inc
Notable investors have taken significant positions in Macy's, with David Tepper (Trades, Portfolio) holding 4,450,000 shares, representing a 1.62% share percentage. Chuck Royce (Trades, Portfolio) owns 1,405,000 shares, accounting for 0.51% of the company, while Steven Cohen (Trades, Portfolio) has a stake of 1,138,267 shares, or 0.42%. The involvement of these prominent shareholders could signal confidence in Macy's strategic direction and potential for future growth.
Competitive Landscape
Macy's operates in a highly competitive retail environment. Its closest competitors in terms of market capitalization are Dillard's Inc (DDS, Financial) with a market cap of $7.11 billion, Nordstrom Inc (JWN, Financial) at $2.9 billion, and Kohl's Corp (KSS, Financial) closely behind at $2.8 billion. Macy's market positioning is critical as it navigates the challenges and opportunities within the cyclical retail sector.
Conclusion
In summary, Macy's Inc has shown a positive trend in its stock performance, with recent gains reflecting a market perception of fair valuation. The company's profitability metrics are strong, particularly in terms of operating margin and ROIC. While growth projections indicate some potential headwinds, Macy's has demonstrated resilience and adaptability in its long-standing history. The presence of influential shareholders and the company's competitive stance within the industry suggest that Macy's is well-positioned to continue navigating the dynamic retail landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
