Macy's, Inc. (M) Bundle
Understanding Macy's, Inc. (M) Revenue Streams
Revenue Analysis
The company reported total revenue of $4.98 billion for the fiscal year 2023, reflecting the financial performance of its retail operations.
| Revenue Source | Amount (Billions) | Percentage of Total Revenue |
|---|---|---|
| Retail Sales | $4.70 | 94.4% |
| Digital Sales | $1.16 | 23.3% |
| Omnichannel Sales | $3.54 | 71.1% |
Revenue growth trends for the past three fiscal years:
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $4.44 billion | +37.2% |
| 2022 | $4.67 billion | +5.2% |
| 2023 | $4.98 billion | +6.6% |
Key revenue segment breakdown:
- Women's Apparel: $1.42 billion (28.5% of total revenue)
- Men's Apparel: $1.12 billion (22.5% of total revenue)
- Home & Accessories: $0.89 billion (17.9% of total revenue)
- Beauty & Cosmetics: $0.55 billion (11.1% of total revenue)
Digital sales experienced significant growth, increasing 23.3% compared to the previous fiscal year, representing a critical component of the company's revenue strategy.
A Deep Dive into Macy's, Inc. (M) Profitability
Profitability Metrics Analysis
The financial performance reveals critical profitability insights for the fiscal year 2023:
| Profitability Metric | Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 38.2% | -2.1 percentage points |
| Operating Profit Margin | 5.6% | -1.3 percentage points |
| Net Profit Margin | 3.1% | -0.9 percentage points |
Key profitability performance indicators include:
- Total Revenue: $24.1 billion
- Operating Income: $1.34 billion
- Net Income: $746 million
Operational efficiency metrics demonstrate:
| Efficiency Metric | 2023 Value |
|---|---|
| Cost of Goods Sold | $14.9 billion |
| Selling, General & Administrative Expenses | $7.2 billion |
| Operating Expenses Ratio | 32.6% |
Comparative industry profitability benchmarks reveal:
- Retail Industry Average Gross Margin: 36.5%
- Retail Industry Average Net Margin: 2.8%
- Return on Equity (ROE): 12.4%
Debt vs. Equity: How Macy's, Inc. (M) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Macy's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Long-Term Debt | $3,124 |
| Total Short-Term Debt | $632 |
| Total Shareholders' Equity | $2,891 |
| Debt-to-Equity Ratio | 1.46 |
Key debt characteristics include:
- Credit Rating: BB- (Standard & Poor's)
- Weighted Average Interest Rate: 5.7%
- Debt Maturity Profile: Primarily between 2025-2029
Recent debt refinancing activities have focused on:
- Reducing near-term maturity obligations
- Extending debt repayment timelines
- Maintaining flexible financing options
| Financing Source | Percentage |
|---|---|
| Debt Financing | 52.3% |
| Equity Financing | 47.7% |
Assessing Macy's, Inc. (M) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity metrics reveal critical insights:
| Liquidity Metric | Current Value |
|---|---|
| Current Ratio | 1.23 |
| Quick Ratio | 0.85 |
| Working Capital | $567 million |
Cash flow statement highlights for fiscal year 2023:
- Operating Cash Flow: $412 million
- Investing Cash Flow: -$287 million
- Financing Cash Flow: -$195 million
Key liquidity indicators demonstrate financial positioning:
| Financial Indicator | 2023 Value |
|---|---|
| Total Cash and Equivalents | $983 million |
| Short-term Debt | $456 million |
| Long-term Debt | $1.2 billion |
Debt coverage metrics reveal:
- Interest Coverage Ratio: 2.7x
- Debt-to-Equity Ratio: 1.45
Is Macy's, Inc. (M) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the key valuation metrics for the company reveal critical insights for investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 5.82 |
| Price-to-Book (P/B) Ratio | 0.72 |
| Enterprise Value/EBITDA | 3.95 |
| Current Stock Price | $14.37 |
| 52-Week Low | $8.20 |
| 52-Week High | $21.50 |
Analyst Recommendations
- Buy Recommendations: 3
- Hold Recommendations: 6
- Sell Recommendations: 2
- Average Price Target: $16.75
Dividend Analysis
| Dividend Metric | Current Value |
|---|---|
| Annual Dividend Yield | 7.24% |
| Dividend Payout Ratio | 32.5% |
| Quarterly Dividend | $0.25 |
Stock Performance Indicators
- Year-to-Date Performance: -12.3%
- Beta Coefficient: 1.45
- Relative Volatility Index: 58
Key Risks Facing Macy's, Inc. (M)
Risk Factors
The company faces multiple critical risk factors that could impact its financial performance and strategic positioning.
Competitive Market Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Retail Market Volatility | Revenue Disruption | High |
| E-commerce Competition | Market Share Erosion | Medium |
| Consumer Spending Trends | Reduced Discretionary Purchases | High |
Financial Risk Assessment
- Total Debt: $4.67 billion as of Q3 2023
- Debt-to-Equity Ratio: 1.85
- Interest Expense: $182 million annually
Operational Risks
Key operational challenges include:
- Supply Chain Disruptions
- Inventory Management Complexities
- Technological Infrastructure Limitations
Market Condition Risks
| Risk Element | Potential Consequence |
|---|---|
| Inflation Impact | Reduced Consumer Purchasing Power |
| Interest Rate Fluctuations | Increased Borrowing Costs |
Strategic Risks
Strategic vulnerabilities include:
- Digital Transformation Challenges
- Brand Relevance Maintenance
- Store Network Optimization
Future Growth Prospects for Macy's, Inc. (M)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete financial and strategic objectives.
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $24.1 billion | 2.3% |
| 2025 | $24.8 billion | 3.1% |
Strategic Growth Initiatives
- Digital commerce expansion with $1.5 billion investment
- Omnichannel retail integration
- Store optimization program targeting 25 underperforming locations
Market Expansion Strategies
Key market expansion focus includes:
- E-commerce platform enhancement
- Private label brand development
- International market penetration targeting 15% revenue growth
Competitive Advantages
| Advantage | Projected Impact |
|---|---|
| Technology Investment | $200 million annual tech budget |
| Customer Loyalty Program | 8.5 million active members |
Financial Performance Metrics
Projected financial performance indicators:
- EBITDA margin expected at 7.2%
- Operating cash flow projected at $1.3 billion
- Cost reduction targets of $300 million
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