Macy'sMEX:M 63 Return-on-Tangible-Equity is 7.03% as of Apr. 2026, which is 79% below its 10-year median of 33.08. GuruFocus rates MEX:M with a GF Score™ of 63/100 and a GF Value™ of MXN284.89 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Macy's ranks better than 72.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Macy's's annualized net income for the quarter that ended in Apr. 2026 was MXN4,414 Mil. Macy's's average shareholder tangible equity for the quarter that ended in Apr. 2026 was MXN62,774 Mil. Therefore, Macy's's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 7.03%.
The historical rank and industry rank for Macy's's Return-on-Tangible-Equity or its related term are showing as below:
MEX:M'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -237.73 Med: 33.08 Max: 243.17
Current: 20.02
During the past 13 years, Macy's's highest Return-on-Tangible-Equity was 243.17%. The lowest was -237.73%. And the median was 33.08%.
MEX:M's Return-on-Tangible-Equity is ranked better than 72.12% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.4
vs MEX:M: 20.02
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Macy's Return-on-Tangible-Equity Related Terms
Macy's Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Macy's's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:M vs DDS, PLBL, KSS: Return-on-Tangible-Equity Comparison
For the Department Stores subindustry, Macy's's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Macy's Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Macy's's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Macy's's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.03% mean?
Macy's (MEX:M) has a Return-on-Tangible-Equity of 7.03% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Macy's and its competitors. This is 79% below median its historical median of 33.08. According to the industry distribution chart, Macy's ranks #295 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 27.9%.
Is Macy's' Return-on-Tangible-Equity too high?
Macy's' current Return-on-Tangible-Equity of 7.03% is 79% below median its 10-year median of 33.08. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.40. Macy's' value of 7.03% is 16.3% below this industry median. Based on the distribution chart, Macy's ranks #295 out of 1058 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Macy's has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Macy's' Return-on-Tangible-Equity compare to DDS and PLBL?
According to the Retail - Cyclical industry distribution chart, Macy's ranks #295 out of 1058 companies for Return-on-Tangible-Equity. This puts Macy's in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.40. Macy's' value of 7.03% is 16.3% below this benchmark. While the company's 10-year median is 33.08 vs. the industry median of 8.40, Macy's has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.40, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Macy's's current Return-on-Tangible-Equity of 7.03% is 16.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Macy's and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Macy's's current Return-on-Tangible-Equity is 7.03%, which is 79% below median its own 10-year median of 33.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Macy's stock overvalued right now?
Based on GuruFocus' analysis, Macy's (MEX:M) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN284.89, compared to a current price of MXN430.00 — trading 50.9% above its estimated fair value. The current Return-on-Tangible-Equity is 7.03%, which is 79% below median its 10-year median of 33.08 and 16.3% below the Retail - Cyclical industry median of 8.40. Macy's' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Macy's (MEX:M), the current Return-on-Tangible-Equity is 7.03% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Macy's (MEX:M) Overvalued in 2026?
Based on GuruFocus' analysis, Macy's stock appears to be overvalued.
The current stock price of MXN430.00 is trading 50.9% above its estimated GF Value™ of MXN284.89.
GuruFocus considers Macy's to be Significantly Overvalued.
Key valuation signals for MEX:M:
Return-on-Tangible-Equity: 7.03% (79% below median its 10-year median of 33.08)
GF Value™: MXN284.89 vs. price of MXN430.00 (50.9% above fair value)
Industry Position: 16.3% below the Retail - Cyclical median (#295 of 1058)
No single metric tells the full story. See the MEX:M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1858 and based in New York City, Macy's operates about 430 eponymous stores, 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's names, and 170 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances constituted 64% of 2025 net retail sales.
63GF Score
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