Yahoo Finance These Fundamentals Make Macy’s Inc (NYSE:M) Truly Worth Looking At
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Macy’s Inc (NYSE:M), it is a financially-robust company with a a strong history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Macy’s here.
Established dividend payer and good value
M delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 28%, which is what investors like to see! M’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that M manages its cash and cost levels well, which is an important determinant of the company’s health. M seems to have put its debt to good use, generating operating cash levels of 0.35x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
M’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of M’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, M’s share price is trading below the group’s average. This bolsters the proposition that M’s price is currently discounted.
Next Steps:
For Macy’s, there are three pertinent aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for M’s future growth? Take a look at our free research report of analyst consensus for M’s outlook.
Dividend Income vs Capital Gains: Does M return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from M as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of M? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
