Macy's (M) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 6.18%
• Average Volume (3M): 8.11M
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.17
• Revenue Growth: -3.60%
• EPS Growth: 442.87%
• Country: US
• Employees: 94,189
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Department Stores
• EPS (TTM): 2.06
• Shares Outstanding: 278,574,300
• 10 Day Avg. Volume: 7,976,576
• 30 Day Avg. Volume: 8,107,165
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.16
• Price to Cash Flow (P/CF): -5.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.10
• Price Target Upside: 29.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

Macy's overall score reflects a company in recovery mode with a focus on strategic improvements and operational efficiency. While the financial performance shows resilience, challenges remain in debt management and specific market segments. Technical indicators suggest potential for a rebound, but current trends are downward. Valuation appears favorable with a high dividend yield, and recent corporate events indicate a positive strategic direction. However, broader economic uncertainties and a mixed earnings outlook temper the overall score.

Positive Factors

Growth Potential

The company will be better positioned to capitalize on resilient auto service demand.

Restructuring

The company is restructuring to focus on a higher-growth, higher-margin portfolio.

Negative Factors

Retail Challenges

Macy's initial '25e guidance suggests challenged fundamentals continue, with even its below-Street guidance potentially proving optimistic.

Sales and Revenue

Macy's guidance for lower same-store sales growth and a core EBIT dollar loss indicate potential struggles in maintaining retail performance.

Tariffs and Inflation

Tariffs undermine purchasing power by boosting import prices, policy-related uncertainty instilling precaution on spending, and balance sheets less supportive.

Macy's Business Overview & Revenue Model

Company Description

Macy's, Inc. is a premier American department store chain founded in 1858, primarily known for its wide range of products including clothing, footwear, accessories, home goods, beauty products, and housewares. The company operates through various retail formats, including its flagship Macy's stores, as well as Bloomingdale's and Bluemercury, serving a diverse customer base across the United States. With a strong emphasis on providing a comprehensive shopping experience, Macy's integrates its physical stores with a growing online presence to cater to evolving consumer preferences.

How the Company Makes Money

Macy's generates revenue through the sale of a broad spectrum of products in both its physical retail stores and its e-commerce platform. The company’s primary revenue streams include the sale of apparel, accessories, home furnishings, and beauty products. Macy's leverages seasonal events, promotional sales, and exclusive brand collaborations to drive foot traffic and increase sales. Additionally, Macy's benefits from its loyalty programs, which incentivize repeat purchases and enhance customer retention. The company also explores strategic partnerships and exclusive merchandise agreements to attract a wider audience and boost its market presence. Furthermore, Macy's capitalizes on real estate assets through leasing arrangements and other revenue-generating strategies.

Macy's Financial Statement Overview

Summary

Macy's financial performance shows improvements in profitability and cash flow management, with stable gross profit margins and improved EBIT and EBITDA margins. The balance sheet is stronger with better leverage management, but high debt levels remain a concern. Cash flow is robust, supporting operational needs.

Income Statement

Macy's has shown mixed performance in its income statement metrics. The gross profit margin remains consistent, indicating stable cost management. However, the net profit margin has fluctuated, recovering from a negative position in 2021 to a modest positive in 2025. Revenue growth has been inconsistent, with a recent decline. The EBIT and EBITDA margins have improved, reflecting better operational efficiency, but the overall profitability still faces challenges.

Balance Sheet

The balance sheet indicates a solid equity position with improving stockholders' equity over the years. The debt-to-equity ratio has decreased, suggesting better leverage management. The equity ratio has also improved, highlighting a stronger financial foundation. However, total debt remains significant, posing potential risks if not managed carefully.

Cash Flow

Cash flow metrics show robust free cash flow growth and a strong operating cash flow to net income ratio, indicating healthy cash generation relative to earnings. Despite fluctuations in free cash flow, Macy's has maintained positive cash flow trends, supporting its financial stability and operational needs.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
23.01B	23.87B	25.30B	25.29B	18.10B
	Gross Profit
9.27B	9.72B	10.00B	10.34B	5.81B
	EBIT
909.00M	382.00M	1.73B	2.35B	-956.00M
	EBITDA
1.83B	1.16B	2.54B	3.00B	-3.54B
	Net Income Common Stockholders
582.00M	105.00M	1.18B	1.43B	-3.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.31B	1.03B	862.00M	1.71B	1.68B
	Total Assets
16.40B	16.25B	16.87B	17.59B	17.71B
	Total Debt
5.71B	6.34B	6.40B	6.83B	8.04B
	Net Debt
4.40B	5.31B	5.54B	5.11B	6.37B
	Total Liabilities
11.85B	12.11B	12.78B	13.97B	15.15B
	Stockholders Equity
4.55B	4.14B	4.08B	3.62B	2.55B
Cash Flow		Free Cash Flow
760.00M	312.00M	320.00M	2.12B	183.00M
	Operating Cash Flow
1.28B	1.30B	1.61B	2.71B	649.00M
	Investing Cash Flow
-592.00M	-913.00M	-1.17B	-370.00M	-325.00M
	Financing Cash Flow
-413.00M	-220.00M	-1.30B	-2.38B	699.00M

Macy's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For M, the sentiment is Negative. The current price of 10.85 is below the 20-day moving average (MA) of 13.02, below the 50-day MA of 13.93, and below the 200-day MA of 15.25, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for M.

Macy's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	76 Outperform	$4.32B	10.93	17.56%	―	7.71%	40.01%
M	69 Neutral	$3.17B	5.51	13.40%	6.18%	-3.60%	442.87%
DDS	69 Neutral	$5.05B	8.62	33.98%	0.32%	-4.13%	-17.60%
AEO	67 Neutral	$1.89B	6.52	18.80%	4.57%	1.27%	96.32%
JWN	64 Neutral	$3.90B	13.41	29.58%	3.26%	2.20%	120.00%
Sector *	59 Neutral	$11.18B	10.04	-1.58%	3.96%	1.31%	-16.97%
KSS	57 Neutral	$798.19M	7.37	2.83%	22.66%	-7.18%	-65.92%

Macy's Corporate Events

Macy’s Announces Leadership Changes in Bold New Chapter

On April 1, 2025, Macy’s, Inc. announced significant changes to its executive leadership team as part of its ‘Bold New Chapter’ strategy aimed at returning the company to long-term profitable growth. Thomas J. Edwards, Jr. will join Macy’s as Chief Operating Officer and Chief Financial Officer effective June 22, 2025, succeeding Adrian V. Mitchell. Edwards brings extensive experience from Capri Holdings Limited and is expected to drive innovation and optimize operations at Macy’s. The leadership evolution also includes new reporting structures for key executives like Barbie Cameron and Maly Bernstein, aligning with Macy’s strategic focus on strengthening and modernizing its operations to enhance customer experience and shareholder value.