Macy's (M) AI Stock Analysis

• Market Cap: $3.53B
• Dividend Yield: 6.81%
• Average Volume (3M): 6.80M
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.11
• Revenue Growth: -3.77%
• EPS Growth: 4607.98%
• Country: US
• Employees: 94,189
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Department Stores
• EPS (TTM): 0.16
• Shares Outstanding: 271,539,520
• 10 Day Avg. Volume: 6,042,639
• 30 Day Avg. Volume: 6,797,442
• PEG Ratio: -1.62
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.18
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 1.36
• 1Y Price Target: $12.23
• Price Target Upside: -6.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $13.50 ▲(3.77%Upside)

Macy's overall score reflects strong valuation and positive earnings call sentiment, despite financial performance challenges. The technical analysis supports a stable outlook with slight bullish tendencies. The company's strategic focus on luxury and inventory management is a positive, but declining profitability and external pressures remain concerns.

Positive Factors

Earnings

Macy's reported a stronger-than-expected earnings per share for the first quarter, surpassing market expectations.

Price Target

The price target for Macy's stock has been raised from $11.00 to $13.00.

Strategy

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

Negative Factors

Earnings Guidance

Management lowered the full-year earnings outlook, citing a challenging retail environment and the impact of tariffs.

Personnel Changes

The departure of former CFO/COO Adrian Mitchell, a key architect of Macy's strategy, adds uncertainty to the company's future plans.

Top-line Trends

Skepticism remains that the business can deliver a topline inflection without continued GM &/or SG&A sacrifice.

Macy's Business Overview & Revenue Model

Company Description

Macy's, Inc. is a leading American department store chain known for its wide range of products including clothing, accessories, cosmetics, home furnishings, and other consumer goods. With a rich history dating back to 1858, Macy's operates under its flagship brand, Macy's, as well as Bloomingdale's and Bluemercury. The company serves millions of customers across the United States through its numerous physical stores, robust e-commerce platform, and innovative digital initiatives.

How the Company Makes Money

Macy's, Inc. generates revenue primarily through the sale of consumer goods across its various retail channels. The company's key revenue streams include in-store sales from its numerous department stores, which offer a wide array of merchandise ranging from fashion and beauty products to home goods. Additionally, Macy's has a significant online presence, with e-commerce sales contributing substantially to its overall revenue. The company also benefits from various private label brands, exclusive merchandise, and partnerships with well-known designers and brands that drive customer traffic and sales. Furthermore, Macy's engages in promotional events and sales, such as the iconic Macy's Thanksgiving Day Parade and seasonal sales events, which enhance brand visibility and boost revenue.

Macy's Financial Statement Overview

Summary

Macy's financial statements indicate a company facing profitability and cash flow challenges. Although the gross profit margin remains stable, declining net profit margins and reduced revenue growth highlight operational challenges. The balance sheet shows moderate leverage and a stable equity base, but declining ROE is a concern. Cash flow management presents a mixed picture, with strong operating cash flow but a decrease in free cash flow. Macy's may need to focus on improving profitability and cash flow efficiency to strengthen its financial position.

Income Statement

Macy's income statement shows a moderate performance with stable gross profit margins around 40% over recent periods. However, the net profit margin has decreased from 6.0% to 2.4% in TTM, indicating pressure on net profitability. Revenue growth has declined recently, with a decrease from previous periods. EBIT and EBITDA margins have also seen a decline, reflecting operational challenges. Overall, the income statement presents a mixed picture with profitability concerns.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of approximately 1.27 in TTM, indicating a reasonable leverage level. Return on Equity (ROE) has decreased from 39.5% to 12.5%, showing reduced efficiency in generating returns for shareholders. The equity ratio stands at 27.7%, suggesting a stable but not overly conservative capital structure. While there is a solid equity base, declining ROE is a concern.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from $760M to $369M, marking a significant reduction in free cash flow growth rate. Operating cash flow to net income ratio remains robust at 1.94, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting reduced cash flow efficiency. Cash flow management shows some strengths but highlights a need for improvement in free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.80B	23.01B	23.87B	25.45B	25.40B	18.10B
Gross Profit	9.21B	9.27B	9.64B	10.10B	10.44B	5.81B
EBITDA	1.73B	1.76B	1.07B	2.50B	3.00B	-3.54B
Net Income	558.00M	582.00M	45.00M	1.15B	1.43B	-3.94B
Balance Sheet
Total Assets	16.09B	16.40B	16.25B	16.87B	17.59B	17.71B
Cash, Cash Equivalents and Short-Term Investments	932.00M	1.31B	1.03B	862.00M	1.71B	1.68B
Total Debt	5.66B	5.71B	6.34B	6.40B	6.83B	8.04B
Total Liabilities	11.64B	11.85B	12.11B	12.78B	13.97B	15.15B
Stockholders Equity	4.45B	4.55B	4.14B	4.08B	3.62B	2.55B
Cash Flow
Free Cash Flow	369.00M	760.00M	312.00M	320.00M	2.12B	183.00M
Operating Cash Flow	1.08B	1.28B	1.30B	1.61B	2.71B	649.00M
Investing Cash Flow	-508.00M	-592.00M	-913.00M	-1.17B	-370.00M	-325.00M
Financing Cash Flow	-521.00M	-413.00M	-220.00M	-1.30B	-2.38B	699.00M

Macy's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For M, the sentiment is Positive. The current price of 13.01 is above the 20-day moving average (MA) of 12.19, above the 50-day MA of 11.86, and below the 200-day MA of 13.54, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for M.

Macy's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.72B	15.71	19.55%	―	8.38%	52.18%
DDS	78 Outperform	$7.56B	13.39	30.93%	5.37%	-3.94%	-17.78%
M	76 Outperform	$3.53B	6.58	12.92%	6.81%	-3.77%	4607.98%
AEO	64 Neutral	$1.77B	10.43	12.19%	6.13%	-0.95%	-10.51%
Sector *	63 Neutral	$17.14B	11.11	-7.24%	3.14%	1.68%	-25.43%
KSS	61 Neutral	$1.07B	8.88	3.19%	8.72%	-7.03%	-56.59%

Macy's Corporate Events

Macy’s Announces $500 Million Senior Notes Offering

On July 14, 2025, Macy’s, Inc. announced that its subsidiary, Macy’s Retail Holdings, LLC, priced a $500 million offering of 7.375% senior notes due 2033. The proceeds from this offering will be used to fund a tender offer, redeem outstanding senior notes, and cover related expenses. The closing of this offering is expected on July 29, 2025, and is crucial for the company’s financial restructuring efforts, impacting its debt management strategy.

The most recent analyst rating on (M) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Macy’s stock, see the M Stock Forecast page.

Macy’s Announces $500 Million Senior Notes Offering

On July 14, 2025, Macy’s, Inc. announced that its subsidiary, Macy’s Retail Holdings, LLC, plans to offer $500 million in senior notes due 2033 in a private offering. The proceeds from this offering, along with cash on hand, will be used to fund a tender offer to repurchase certain outstanding senior notes and debentures, redeem approximately $587 million of other outstanding notes, and cover related expenses. This financial maneuver is part of Macy’s strategy to manage its debt and optimize its financial structure, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (M) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Macy’s stock, see the M Stock Forecast page.

Macy’s Holds Virtual Annual Shareholders Meeting

On May 16, 2025, Macy’s, Inc. held its annual shareholders meeting virtually, where several key decisions were made. Shareholders approved the election of 13 directors for a one-year term, ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026, and approved the advisory vote on executive officer compensation.

The most recent analyst rating on (M) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Macy’s stock, see the M Stock Forecast page.