Macy's (M) AI Stock Analysis

• Market Cap: $6.15B
• Dividend Yield: 3.12%
• Average Volume (3M): 7.15M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.13
• 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: 7,858,470
• 30 Day Avg. Volume: 7,146,796
• 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: 1.65
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: 6.27
• 1Y Price Target: $21.33
• Price Target Upside: -10.49% 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 ▲(4.91% 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 significant challenges, with declining revenue and profitability. The income statement highlights negative revenue growth and net income, while the balance sheet shows moderate leverage but poor returns on equity. Cash flow improvements are a positive sign, but historical volatility raises concerns about long-term stability.

Income Statement

Macy's income statement reveals significant challenges. The TTM data shows a drastic decline in revenue and profitability, with negative revenue growth and net income. Gross profit margin remains high, but net profit margin is negative, indicating operational inefficiencies. Historical data shows declining revenue growth and fluctuating margins, reflecting instability in financial performance.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.35 in the TTM period, a significant improvement from previous years. However, return on equity is negative, highlighting profitability issues. The equity ratio is stable, but the overall financial health is weakened by inconsistent equity returns and past high leverage.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth in the TTM period, suggesting improved cash management. The operating cash flow to net income ratio is positive, indicating some operational efficiency. However, historical volatility in free cash flow growth and low coverage ratios suggest potential liquidity risks.

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: 23.83
• 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 23.83 is above the 20-day moving average (MA) of 22.29, above the 50-day MA of 20.29, and above the 200-day MA of 14.72, indicating a bullish trend. The MACD of 0.96 indicates Positive momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.63 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	$10.11B	17.58	28.98%	3.83%	-1.07%	-5.22%
MHO	75 Outperform	$3.49B	7.81	15.76%	―	4.77%	-9.30%
M	74 Outperform	$6.15B	13.60	11.28%	3.12%	-2.83%	184.32%
KSS	68 Neutral	$2.52B	13.16	5.02%	2.21%	-6.13%	-22.57%
PVH	66 Neutral	$3.28B	10.76	6.70%	0.21%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.24B	81.89	6.39%	1.96%	-4.56%	―

Macy's Corporate Events

Macy’s Earnings Call: Strong Results Amid Cautious Outlook

Macy’s Earnings Call: A Mixed Sentiment Amid Strong Performance and Cautious Outlook

Macy’s Exceeds Q2 2025 Earnings Expectations

Macy’s, Inc. is a renowned omni-channel retailer operating under the iconic nameplates of Macy’s, Bloomingdale’s, and Bluemercury, offering a wide range of products from off-price to luxury across the United States. In its latest earnings report for the second quarter of 2025, Macy’s, Inc. exceeded its guidance for net sales and adjusted diluted earnings per share, showcasing its strongest comparable sales growth in 12 quarters. The company reported net sales of $4.8 billion and an adjusted diluted EPS of $0.41, both surpassing expectations. Macy’s Reimagine 125 locations, Bloomingdale’s, and Bluemercury all contributed positively to the company’s comparable sales growth.

Macy’s Issues $500 Million in Senior Notes

On July 29, 2025, Macy’s Retail Holdings, LLC, a subsidiary of Macy’s, Inc., issued $500 million in senior notes due 2033 in a private offering to qualified institutional buyers. The proceeds are intended to fund a tender offer for outstanding senior notes and debentures, redeem approximately $587 million of other outstanding notes, and cover related fees and expenses. Additionally, Macy’s announced the early tender results and upsizing of its tender offer to repurchase up to $250 million of its outstanding notes, increasing the maximum amount from $175 million to $250 million. The tender offer, which had an early settlement date of July 29, 2025, saw all validly tendered notes accepted for purchase, with no notes accepted after the early tender date.

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.