Macy's (M)
NYSE:M
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Macy's
(NYSE:M)
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Rating:63Neutral
Price Target:
$19.50
▼(-0.20% Downside)
Action:Reiterated
Date:05/19/26
The score is supported most by a deeply discounted valuation (very low P/E) and solid cash generation, alongside constructive operational signals from the latest earnings call (positive comps and strong Bloomingdale’s). Offsetting these are weakening reported revenue trends and margin compression in the financials, cautious near-term guidance (tariffs and softer Q1 earnings), and weak technical positioning with the stock trading below key moving averages.
Positive Factors
Cash generation & capital returns
Macy’s generates consistent operating cash flow and positive free cash flow, enabling dividends and buybacks while funding reinvestment. Durable cash generation reduces reliance on external financing, supports capital allocation flexibility and cushions execution risks over the next 2–6 months.
Negative Factors
Top-line erosion
A declining revenue trend and a pronounced 2026 drop reduce scale and operating leverage, pressuring margins and returns. Sustained top‑line weakness forces reliance on cost cuts, store rationalization or asset monetization to maintain profitability and cash flow consistency.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & capital returns
Macy’s generates consistent operating cash flow and positive free cash flow, enabling dividends and buybacks while funding reinvestment. Durable cash generation reduces reliance on external financing, supports capital allocation flexibility and cushions execution risks over the next 2–6 months.
Read all positive factors
Macy's Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Data provided by:
The Fly
The FlyMacy's (M) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.45B
Dividend Yield3.23%
Average Volume (3M)4.96M
Price to Earnings (P/E)2.7
Beta (1Y)1.22
Revenue Growth-1.67%
EPS Growth15.12%
CountryUS
Employees94,189
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.37
Shares Outstanding263,739,500
10 Day Avg. Volume6,264,377
30 Day Avg. Volume4,962,411
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.11
Price to Sales (P/S)0.24
P/FCF Ratio5.13
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.14
Enterprise Value/Ebitda4.89
Forecast
1Y Price Target
$18.57Price Target Upside-4.96% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.09
Revenue Forecast (FY)$21.59B
Macy's Business Overview & Revenue Model
Company Description
Macy's, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other c...
How the Company Makes Money
Macy’s makes money primarily by selling merchandise to consumers through its stores and e-commerce platforms. Its core revenue stream is retail sales across key categories such as apparel, beauty (including cosmetics and fragrances), and home good...
Macy's Earnings Call Summary
Earnings Call Date:Mar 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call communicated clear operational momentum: material beats on EPS, return to positive comps, strong Bloomingdale's performance, improved cash flow and successful Reimagine rollout. Offsetting risks include tariff-related margin pressure, lower-than-expected asset sale gains, extended timing on store monetizations, and cautious near-term guidance that compresses Q1 earnings and EBITDA margin. Overall, the company appears to be executing its strategy effectively while prudently managing macro and timing uncertainties.Positive Updates
Q4 and Full-Year EPS Outperformance
Adjusted diluted EPS of $1.67 in Q4 exceeded guidance of $1.35–$1.55; full-year adjusted diluted EPS of $2.32 was above prior guidance of $2.00–$2.20.
Negative Updates
Tariff Headwinds and Margin Pressure
Tariffs negatively impacted Q4 by approximately $0.13 EPS and are expected to subtract roughly $0.10–$0.20 from FY2026 EPS; tariff headwind to gross margin expected ~20–30 bps for the year and ~40–60 bps in Q1, contributing to a Q4 gross margin decline to 35.2% from 35.7% prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 and Full-Year EPS Outperformance
Adjusted diluted EPS of $1.67 in Q4 exceeded guidance of $1.35–$1.55; full-year adjusted diluted EPS of $2.32 was above prior guidance of $2.00–$2.20.
Read all positive updates
Company Guidance
Macy's, Inc. guided to fiscal 2026 net sales of approximately $21.4 billion to $21.65 billion, Macy's, Inc. comparable sales down ~0.5% to up 0.5%, other revenue about $920 million, gross margin of 38.3%–38.6% of net sales (tariff headwind ~20–30 bps full year, with Q1 tariff impact ~40–60 bps), SG&A up 1%–2% on a dollar basis (highest dollar growth expected in Q1 and Q3), adjusted EBITDA of 7.7%–7.9% of total revenue (vs. 7.9% in FY25), interest expense roughly $110 million, adjusted diluted EPS of $1.90–$2.10 (incorporating a ~$0.10–$0.20 tariff drag and comparing to $2.15 last year), capex ~ $800 million (with increased investment in Bloomingdale's), and a Q1 outlook of net sales ~$4.575B–$4.625B, comps up ~0.5%–1.5%, adjusted EBITDA 4.9%–5.1% of revenue (vs. 6.3% last year) and adjusted EPS of -$0.01 to $0.01 (Q1 tariff EPS headwind ~$0.05–$0.10); guidance excludes potential future share buybacks and will reflect the company’s updated non‑GAAP definitions beginning in Q1.Macy's Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.62B | 23.01B | 23.87B | 25.45B | 25.40B |
| Gross Profit | 8.27B | 9.27B | 9.64B | 10.10B | 10.44B |
| EBITDA | 1.92B | 1.76B | 1.07B | 2.50B | 3.00B |
| Net Income | 642.00M | 582.00M | 45.00M | 1.15B | 1.43B |
Balance Sheet | |||||
| Total Assets | 16.24B | 16.40B | 16.25B | 16.87B | 17.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.31B | 1.03B | 862.00M | 1.71B |
| Total Debt | 5.20B | 5.71B | 5.98B | 6.40B | 6.83B |
| Total Liabilities | 11.38B | 11.85B | 12.21B | 12.78B | 13.97B |
| Stockholders Equity | 4.86B | 4.55B | 4.04B | 4.08B | 3.62B |
Cash Flow | |||||
| Free Cash Flow | 1.06B | 760.00M | 312.00M | 320.00M | 2.12B |
| Operating Cash Flow | 1.43B | 1.28B | 1.30B | 1.61B | 2.71B |
| Investing Cash Flow | -639.00M | -592.00M | -913.00M | -1.17B | -370.00M |
| Financing Cash Flow | -852.00M | -413.00M | -220.00M | -1.30B | -2.38B |
Macy's Technical Analysis
Positive
19.54
Price Trends
18.86
Positive
19.79
Positive
18.94
Positive
Market Momentum
0.19
Negative
65.70
Neutral
97.31
Negative
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 19.54 is above the 20-day moving average (MA) of 19.31, above the 50-day MA of 18.86, and above the 200-day MA of 18.94, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 97.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for M.
Macy's Risk Analysis
Macy's disclosed 29 risk factors in its most recent earnings report. Macy's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Macy's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.77B | 8.80 | 33.85% | 3.99% | 0.62% | 16.32% | |
70 Outperform | $3.32B | 11.74 | 11.42% | ― | -1.83% | -30.18% | |
64 Neutral | $4.10B | 117.41 | 0.53% | 0.22% | 3.44% | -96.10% | |
63 Neutral | $5.45B | 2.68 | 14.20% | 3.23% | -1.67% | 15.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $1.47B | 3.91 | 6.91% | 2.33% | -4.28% | 146.27% | |
52 Neutral | $6.54B | 25.14 | 13.95% | 1.95% | -0.72% | ― |
* Consumer Cyclical Sector Average
M
Macy's
20.66
9.60
86.80%
DDS
Dillard's
561.80
171.36
43.89%
KSS
Kohl's
13.06
5.85
81.04%
MHO
M/I Homes
129.82
23.47
22.07%
PVH
PVH
88.92
7.09
8.66%
VFC
VF
16.70
4.97
42.42%
Macy's Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Macy’s Shareholders Approve Updated Equity Incentive Plan
Positive
May 18, 2026
At its virtual annual meeting on May 15, 2026, Macy’s, Inc. shareholders approved an amendment and restatement of the company’s 2024 Equity and Incentive Compensation Plan, following prior board approval on March 26, 2026. The revamped...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Macy’s Announces Board Departures and Size Reduction
Neutral
Mar 26, 2026
On March 25, 2026, Macy’s, Inc. said directors Richard Clark, Douglas W. Sesler and Tracey Zhen informed the board they will not stand for re-election at the May 15, 2026 annual shareholders’ meeting. The company emphasized that their ...
Shareholder Meetings
Macy’s Sets Date for 2026 Annual Stockholders Meeting
Neutral
Feb 27, 2026
On February 27, 2026, Macy’s, Inc.’s board of directors scheduled the company’s annual stockholders’ meeting for May 15, 2026. The board also set March 19, 2026 as the record date determining which stockholders will be elig...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.