One-glance verdict
Undervalued
$40.57 our estimate vs market $23.74
Wall Street consensus: $23.10 (-43.1% lower than our fair-value estimate)
41% below our estimate, below the bear case
Fundamentals snapshot
Macy's, Inc.
M · NYQ · Consumer Cyclical · Department Stores
Current price
$23.74
52-week range
$16.69 - $26.59
Market cap
$6.20B
Balance sheet
Watch
9.11x Adequate
Net debt $3.79B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.7% last year.
- Reward Returns 16.0% on equity, ahead of 20% of its peers.
- Risk Forward P/E (10.0x) is higher than trailing (8.7x) - earnings are expected to drop.
- Risk Operating margin compressed from 6.4% to 3.2% over 3 years.
What this company does
Macy's, Inc.
Macy's is a department store company that sells clothes, makeup, and home goods through its physical stores and online platforms, with its main income coming from these sales. This is important because understanding how well they sell their products helps us see if the company is making money and if its sales are growing.
What it actually does
Macy's, Inc. is a major retailer that operates a network of department stores, websites, and mobile apps across the United States. They sell a wide variety of products, including clothing and accessories for all ages, as well as cosmetics, home furnishings, and other household goods. Essentially, Macy's acts as a one-stop shop for many consumer needs, offering a broad selection of merchandise from various brands.
Macy's
The Macy's banner represents the core of the company's business, offering a wide range of apparel, accessories, home goods, and beauty products to a broad customer base. This segment includes the traditional Macy's department stores, as well as newer concepts like smaller format stores and online offerings. It is the largest part of Macy's operations, providing national brand recognition and a wide reach across the country. The company is working to improve these stores and focus investments on the most productive locations.
Bloomingdale's
Bloomingdale's is Macy's luxury department store brand, catering to a more affluent customer with a focus on high-end fashion, designer apparel, and premium home goods. This segment offers a curated selection of merchandise, often featuring exclusive collections and a more upscale shopping experience. Bloomingdale's is a smaller but significant part of Macy's overall business, contributing to the company's presence in the luxury market. The company plans to expand this brand's footprint.
Bluemercury
Bluemercury is Macy's specialty beauty business, focusing on prestige beauty products, skincare, and cosmetics. This segment operates through standalone Bluemercury stores and online, offering a curated selection of high-end beauty brands. It represents a faster-growing and distinct part of Macy's, providing a specialized retail experience in the beauty sector. Macy's aims to grow this segment, planning to open additional locations.
What management is betting on now
Macy's management is currently focused on a strategy called 'A Bold New Chapter,' which aims to revitalize the company. This plan involves optimizing the store portfolio by closing underperforming locations and investing more in the remaining, more productive stores. They are also looking to accelerate growth in their luxury brands, Bloomingdale's and Bluemercury, and expand their presence in off-mall locations. A key part of this strategy is to simplify and modernize the company's operations to improve efficiency and enhance the customer experience across all channels, both online and in-store.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-295.00M
FY2026 Q1
$1.19B
FY2026 Q2
$-164.00M
FY2026 Q3
$240.00M
FY2026 Q4
$-101.00M
FY2027 Q2
$204.00M
FY2027 Q3
$229.00M
Revenue
$5.06B
Net income
$169.00M
Diluted EPS
0.62
Operating cash flow
$294.00M
Free cash flow
$229.00M
Fetching…
Sources
Revenue
$4.89B
Net income
$63.00M
Diluted EPS
0.23
Operating cash flow
$292.00M
Free cash flow
$204.00M
Fetching…
Sources
Revenue
$4.91B
Net income
$11.00M
Diluted EPS
0.04
Operating cash flow
$-8.00M
Free cash flow
$-101.00M
Fetching…
Sources
Revenue
$5.00B
Net income
$87.00M
Diluted EPS
0.31
Operating cash flow
$319.00M
Free cash flow
$240.00M
Fetching…
Sources
Revenue
$4.79B
Net income
$38.00M
Diluted EPS
0.13
Operating cash flow
$-64.00M
Free cash flow
$-164.00M
Fetching…
Sources
Revenue
$8.01B
Net income
$342.00M
Diluted EPS
1.22
Operating cash flow
$1.31B
Free cash flow
$1.19B
Fetching…
Sources
Revenue
$4.90B
Net income
$28.00M
Diluted EPS
0.10
Operating cash flow
$-167.00M
Free cash flow
$-295.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.57 vs current price $23.74
Wall Street consensus is the average analyst price target: $23.10 (-43.1% lower than our fair-value estimate).
Our most-likely fair value is $40.57 a share — about 70.9% above today's price of $23.74, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $3.8B. Interest coverage 9.1x.
Net debt
$3.79B
Interest coverage
9.11x
Macy's, Inc.'s profit covers its interest bill about 9.1 times over.
Watch
Worse cushion
Baseline
Better cushion
M
BASELINE
Macy's, Inc.
Total debt $5.09B Interest coverage 9.11x This is the baseline the peer rows are being compared against.
Total debt $6.42B Interest coverage 1.77x -81% vs M Carries about 5.1x less debt cushion than M.
Total debt $456.84M Interest coverage 16.78x +84% vs M Carries about 1.8x more debt cushion than M.
Total debt $4.74B Interest coverage 71.36x +683% vs M Carries about 7.8x more debt cushion than M.
Total debt $14.32B Interest coverage 97.00x +964% vs M Carries about 10.6x more debt cushion than M.
What you should know
The case for and against M
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Returns 16.0% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (10.0x) is higher than trailing (8.7x) - earnings are expected to drop.
-
Operating margin compressed from 6.4% to 3.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.70x
Forward P/E
10.01x
P/B
1.26x
P/S
0.27x
EV/EBITDA
7.14x
PEG ratio
2.78x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
3.2%
Net margin
3.3%
ROE
16.0%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.03x
Current ratio
1.59x
Quick ratio
0.38x
Total debt
$5.09B
Total cash
$1.29B
Growth
How the business has been compounding
Revenue TTM
$22.78B
Revenue 5Y CAGR
-1.9%
EPS TTM
2.73
EPS 5Y CAGR
-17.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.76B
Free CF TTM
$1.06B
FCF margin
4.6%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
27.4%
Last ex-div date
2026-12-15