Macy's (M, Financial) shares fell by 7.22% following the announcement of disappointing preliminary fourth-quarter results. The company expects sales to fall slightly below its previous forecast range of $7.8 billion to $8.0 billion.
Same-store sales are projected to remain flat compared to the prior year, and earnings are expected to stay within the previously provided range of $1.40 to $1.65.
Currently trading at $14.70, Macy's (M, Financial) has a market capitalization of approximately $4.08 billion. The stock has a price-to-earnings (P/E) ratio of 24.91 and a price-to-book (P/B) ratio of 0.98, suggesting that it is trading below its book value. The dividend yield is close to its 1-year high, offering an attractive yield of 4.74%.
However, Macy's faces certain financial challenges. The Altman Z-Score stands at 2.22, placing the company in the grey area for financial stress. On a positive note, the Beneish M-Score of -2.6 indicates that Macy's is unlikely to be manipulating its financials.
Macy's (M, Financial) GF Value is estimated at $17.33, suggesting the stock is modestly undervalued according to the GF Value metric. The company's financial health is rated 'C', profitability is rated 'F', and its growth grade stands at 'C'. Its stock falls into the "Small Value" category with a style score of -58.81, indicating potential for long-term investors.
With a forward P/E of 6.25 and a significant drop in recent months, investors are likely to reassess Macy's position in their portfolios, especially as it trades near its 52-week low.
