NYSE:M
$16.73
(2/9 2:25PM)
+2.8%
| Open | $16.47 |
Mkt Cap | $6.8 Billion |
| High | $16.88 |
52Wk High | $20.84 |
| Low | $16.32 |
52Wk Low | $6.27 |
| Volume | 6.9 Million |
Avg Vol 10D | 14.0 Million |
Ockham's Rating/Recommendation Summary
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M Revenue
As a value investing shop, we are interested in seeing how M's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 0.59x and the low end of the range at 0.31x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for M of 0.29x is well below its normal historic Price to Sales levels. At a price of $16.42, M is 35% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
M Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on M from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for M, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
M Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for M, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. M’s estimated annual dividend is $0.20 resulting in a current dividend yield of 1.22%. The highest dividend yield from M over recent history was 8.45% while the lowest dividend yield was 0.00%. It is never a good sign for a company to pay significantly lower dividends, in this case 71.12% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
M's Sales Growth Discussed on Fox Business: Heating Up or Cooling Down?
Trends in sales growth can show the direction of a company, and we have the latest news on M's sales growth via Fox Business.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M. The crowd at The Motley Fool does not like M and believes that it will Underperform.
“… MACY'S definitely one of the big winners, same-store sales were up 3. 4%. But nordstrom's, saks, kohl's, nieman marcus all posting sales gains for the month of january. …”
Fox Business: An Extremely Hot News Day for Macy's, Incorporated Today
The newswires are burning up right now on Macy's, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
The crowd at The Motley Fool does not like M and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M.
“… Retailers we have been watching them throughout all the day, because of the jobless claims numbers also the numbers out of MACY'S. …”
Volatility Alert: M Blasting Across the Newswire on Power Lunch
The newswires are burning up right now on Macy's, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like M and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M.
“… A number of very important companies and MACY'S abercrombie and kohl's raised their guidance and same-store sales numbers are generally above expectations and only a few of them ... …”
Learn Why M Is Being Discussed in the News than Almost Any Other Stock
The newswires are burning up right now on Macy's, Incorporated, so check our RazorWire or turn on your TV to see why it is so active in the news.
The crowd at The Motley Fool does not like M and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks.
“… MACY'S really coming out on top, posting a 3. 4% -- these are same-store sales numbers of stores open at least a year. More comparable number. Nordstrom's sales up 14%. …”
Invested in M? Turn on the TV, It's All Over the News and Fox Business
If you own M, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
The Ockham valuation currently has a Fairly Valued stance on M because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Macy's, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Macy's, Incorporated has actually sunk a bit in comparison to the others.
“… The department stores and names like MACY'S and abercrombie and fitch reported same-store sales showing signs of life. It is a good indication. Some sort of come back. …”
The Call: M is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to M in the news, so if you hold the stock you may want to take a look at what is going on.
The crowd at The Motley Fool does not like M and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M.
“… We are ignoring the growth in online retail and amazon, according to customer growth partners is now the eighth largest retailer in the country ahead of MACY'S in terms of total ... …”
M Having an Active Day in News, Now on The Call
M has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like M and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M.
“… what do you think is ahead then for some of these big, big department stores like MACY'S. Will we see more problems with the economy which will then lead to more problems within ... …”
Stocks to Watch: M Heavily Covered on The Call
M has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, M has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like M and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on M.
“… january sales at the nation's top retailers moved into positive territory from last year's decline among the big winners, we saw department stores led by MACY'S. …”
More News Than Normal on M from Fox Business
We are observing a lot of attention being paid to M in the news, so if you hold the stock you may want to take a look at what is going on.
The Ockham valuation currently has a Fairly Valued stance on M because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Macy's, Incorporated underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Macy's, Incorporated has actually sunk a bit in comparison to the others.
“… I want to talk MACY'S. They have had january sales figures and if you look closely, it did okay. Sales were up 3. 4% and they are optimistic about the future. …”
Investors Sentiment's Effect on Macy's, Incorporated on Squawk On The Street
It is always benefitial to understand the market's sentiment for a particular stock, and Squawk On The Street talked about some aspects of sentiment for M recently.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Macy's, Incorporated underperforming. The Ockham valuation currently has a Fairly Valued stance on M because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Macy's, Incorporated has actually sunk a bit in comparison to the others.
“… The piece of good news today was the retail sales generally better than expected but more importantly guidance raised on a surprising number of companies, MACY'S, kohl's, ross ... …”