The share price of Macy’s, Inc. [NYSE: M] inclined by $21.45, presently trading at $21.77. The company’s shares saw 8.74% gains compared to the lowest price in the period of the last 52 weeks, set at $20.02 recorded on 13/06/2019. The last few days have been benevolent to the share price as M jumped by +6.30% during the last week, even though the stock is still down by -1.09% compared to 1.29 of all time high it touched on 06/12/19. However, the stock had a poor performance during the past 3 months, roughly losing -0.14%, while additionally dropping -45.53% during the last 12 months. Macy’s, Inc. is said to have a 12-month price target set at $25.79. That means that the stock has a strong potential to acquire 4.02% increase from the current trading price.
Macy’s, Inc. [NYSE:M]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Macy’s, Inc. [M], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of January. On average, stock market experts give M an Hold rating. Its stock price has been found in the range of 20.02 to 41.99. This is compared to its latest closing price of $21.45.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Macy’s, Inc. [M] is sitting at 3.18. This is compared to 1 month ago, when its average rating was 3.17.
For the quarter ending in Apr-19 Macy’s, Inc. [M] generated $5.5 billion in sales. That’s 0.01% lower than the average estimate of $5.5 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Wed 21 Aug (In 69 Days).
Fundamental Analysis of Macy’s, Inc. [M]
Now let’s turn to look at profitability: with a current Operating Margin for Macy’s, Inc. [M] sitting at +5.77 and its Gross Margin at +37.15, this company’s Net Margin is now 4.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 13.07, and its Return on Invested Capital has reached 11.40%. Its Return on Equity is 18.30, and its Return on Assets is 5.55. These metrics all suggest that Macy’s, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Macy’s, Inc. [M] has generated a Total Debt to Total Equity ratio of 73.82. Similarly, its Total Debt to Total Capital is 42.47, while its Total Debt to Total Assets stands at 23.92. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 73.15, and its Long-Term Debt to Total Capital is 42.08. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 4.03 and its Total Debt to EBITDA Value is 1.94. The Enterprise Value to Sales for this firm is now 0.38, and its Total Debt to Enterprise Value stands at 0.41. Macy’s, Inc. [M] has a Price to Book Ratio of 1.23, a Price to Cash Flow Ratio of 4.62 and P/E Ratio of 6.15. These metrics all suggest that Macy’s, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Macy’s, Inc. [M] earns $197,992 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 67.47 and its Total Asset Turnover is 1.29. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.42 and its Current Ratio is 1.42. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Macy’s, Inc. [M] has 309.02M shares outstanding, amounting to a total market cap of $6.73B. Its stock price has been found in the range of 20.02 to 41.99. At its current price, it has moved down by -48.15% from its 52-week high, and it has moved up 8.74% from its 52-week low.
This stock’s Beta value is currently 0.52, which indicates that it is 3.27% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.75. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Macy’s, Inc. [M] a Reliable Buy?
Macy’s, Inc. [M] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.