Macy's (M) AI Stock Analysis

• Market Cap: $5.98B
• Dividend Yield: 3.23%
• Average Volume (3M): 6.44M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.09
• Revenue Growth: -2.83%
• EPS Growth: 184.32%
• Country: US
• Employees: 94,189
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.09
• Shares Outstanding: 265,883,120
• 10 Day Avg. Volume: 3,900,756
• 30 Day Avg. Volume: 6,442,556
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 5.76
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 1.09
• Enterprise Value/Ebitda: 6.19
• 1Y Price Target: $21.33
• Price Target Upside: -10.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.17
• Revenue Forecast (FY): $21.59B

• Rating: 74 Outperform
• Price Target: $25.00 ▲(5.40% Upside)

Macy's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting strategic progress and growth in key areas. Financial performance shows recovery, but pressure on profitability margins and return on equity are areas to watch. Valuation remains reasonable, with an attractive dividend yield.

Positive Factors

Strategic Initiatives

Macy's strategic initiatives under the 'Bold New Chapter' are driving operational and financial improvements, indicating a focus on sustainable growth.

Customer Engagement

Improved customer engagement, as evidenced by a record Net Promoter Score, suggests enhanced customer experience and loyalty, supporting long-term revenue growth.

Distribution Efficiency

The new distribution center enhances delivery efficiency and reduces costs, strengthening Macy's supply chain and competitive position.

Negative Factors

Revenue Decline

The decline in net sales due to store closures highlights challenges in maintaining revenue growth, impacting long-term financial stability.

Active Category Weakness

Weak performance in the active category indicates shifting consumer preferences, potentially affecting Macy's product strategy and market share.

Tariff Impact

Tariff impacts on gross margins pose a risk to profitability, necessitating strategic mitigation to maintain margin sustainability.

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 consumer goods. As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company also operates as a beauty products and spa retailer. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.

How the Company Makes Money

Macy's generates revenue primarily through the sale of merchandise in its department stores and online. The company operates on a retail model that includes a mix of full-price sales and promotional discounts. Key revenue streams include apparel, accessories, cosmetics, and home furnishings. Additionally, Macy's earns income from its private label credit card program, which allows customers to finance purchases and earn rewards. Partnerships with various brands and designers also play a significant role in driving traffic and sales, along with strategic initiatives like loyalty programs and targeted marketing campaigns that enhance customer engagement and retention.

Macy's Financial Statement Overview

Summary

Macy's financial performance shows signs of recovery with improvements in revenue growth and cash flow generation. However, profitability margins and return on equity have seen some pressure, indicating areas for potential improvement. The company's leverage position has improved, but maintaining operational efficiency will be crucial for sustaining growth.

Income Statement

Macy's has shown a moderate improvement in its income statement metrics over the TTM period. The gross profit margin remains stable at around 40%, indicating efficient cost management. However, the net profit margin has decreased slightly to 2.1% from the previous annual report's 2.5%, reflecting some pressure on profitability. Revenue growth has been positive at 4.4% in the TTM, reversing the previous year's decline. EBIT and EBITDA margins have also seen a slight decline, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet shows a mixed picture. Macy's has managed to reduce its debt-to-equity ratio to 1.21 in the TTM, down from 1.25 in the previous year, indicating improved leverage management. However, the return on equity has decreased to 10.75% from 12.79%, suggesting a decline in the company's ability to generate returns from its equity base. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Cash flow metrics are strong, with a significant 35.2% growth in free cash flow in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.26, although slightly lower than the previous year's 0.28. The free cash flow to net income ratio has improved to 0.70, suggesting better cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.71B	23.01B	23.87B	25.45B	25.40B	18.10B
Gross Profit	9.17B	9.27B	9.64B	10.10B	10.44B	5.81B
EBITDA	1.62B	1.76B	1.07B	2.50B	3.00B	-3.54B
Net Income	478.00M	582.00M	45.00M	1.15B	1.43B	-3.94B
Balance Sheet
Total Assets	17.06B	16.40B	16.25B	16.87B	17.59B	17.71B
Cash, Cash Equivalents and Short-Term Investments	447.00M	1.31B	1.03B	862.00M	1.71B	1.68B
Total Debt	5.24B	5.71B	5.98B	6.40B	6.83B	8.33B
Total Liabilities	12.74B	11.85B	12.21B	12.78B	13.97B	15.15B
Stockholders Equity	4.33B	4.55B	4.04B	4.08B	3.62B	2.55B
Cash Flow
Free Cash Flow	1.09B	760.00M	312.00M	320.00M	2.12B	183.00M
Operating Cash Flow	1.55B	1.28B	1.30B	1.61B	2.71B	649.00M
Investing Cash Flow	-562.00M	-592.00M	-913.00M	-1.17B	-370.00M	-325.00M
Financing Cash Flow	-862.00M	-413.00M	-220.00M	-1.30B	-2.38B	699.00M

Macy's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 23.72 is above the 20-day moving average (MA) of 22.99, above the 50-day MA of 21.55, and above the 200-day MA of 15.34, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 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
DDS	76 Outperform	$10.17B	18.74	28.98%	3.99%	-1.07%	-5.22%
MHO	75 Outperform	$3.31B	7.74	15.76%	―	4.77%	-9.30%
M	74 Outperform	$5.98B	13.94	11.28%	3.23%	-2.83%	184.32%
KSS	68 Neutral	$2.32B	12.76	5.02%	2.33%	-6.13%	-22.57%
PVH	66 Neutral	$3.02B	10.25	6.70%	0.22%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.50B	89.18	6.39%	1.95%	-4.56%	―

Macy's Corporate Events

Macy’s Finalizes Separation Agreement with Former COO

On December 8, 2025, Macy’s, Inc. finalized a compensatory agreement with Adrian V. Mitchell, the former COO and CFO, providing him a $2.7 million cash payment as part of his separation compensation. This agreement also releases both parties from claims and ends Mr. Mitchell’s non-competition obligations, potentially impacting Macy’s leadership dynamics and competitive strategies.

The most recent analyst rating on (M) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Macy’s stock, see the M Stock Forecast page.