Skip to Content

Macy's Inc M

Morningstar Rating
$16.81 +0.26 (1.57%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Macy’s: Rejection of Takeover Offer May Have Been Prudent, but It Adds Uncertainty; Shares Attractive

Macy's announced that it has terminated discussions with Arkhouse Management and Brigade Capital Management regarding their proposed acquisition of the company. In its statement, Macy's cited significant uncertainty as to whether financing could be arranged, the complexity of the proposed financing arrangements, the distraction to management from the process, and the unappealing offer price. Arkhouse and Brigade recently raised their offer to $24.80 per share after due diligence, but this was an increase of just 3.3% from their prior $24 offer. We do not believe that Macy's board and management was ever eager to sell the company to a group that was likely more interested in monetizing its real estate rather than in improving its retail operations, but Macy's rejection of the offer was probably fair to investors if the financing was unconfirmed.

Price vs Fair Value

M is trading at a 77% premium.
Price
$16.55
Fair Value
$51.00
Uncertainty
Very High
1-Star Price
$55.13
5-Star Price
$62.60
Economic Moat
Rbc
Capital Allocation
Zvkhztjfr

Bulls Say, Bears Say

Bulls

A group has offered to buy Macy’s for $24 per share. As the Macy’s board seems willing to negotiate, we think there is a fair possibility that a deal could happen.

Bears

Macy’s has been closing stores and implementing turnaround plans for years but none of them have really improved the underlying health of the business.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if M is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$16.55
Day Range
$16.4416.97
52-Week Range
$10.5422.10
Bid/Ask
$16.76 / $16.81
Market Cap
$4.65 Bil
Volume/Avg
5.1 Mil / 5.2 Mil

Key Statistics

Price/Earnings (Normalized)
5.21
Price/Sales
0.19
Dividend Yield (Trailing)
4.10%
Dividend Yield (Forward)
4.20%
Total Yield
4.16%

Company Profile

Founded in 1858 and based in New York City, Macy’s operates about 500 stores under the Macy’s nameplate, nearly 60 stores under the Bloomingdale’s (full-price and outlet) and Bloomie's nameplates, and 159 freestanding Bluemercury specialty beauty stores. Macy’s also operates e-commerce sites and licenses Bloomingdale’s stores in the United Arab Emirates and Kuwait. Women’s apparel, accessories, shoes, cosmetics, and fragrances composed 62% of Macy’s 2023 sales.
Sector
Consumer Cyclical
Industry
Department Stores
Stock Style Box
Small Value
Total Number of Employees
85,581

Competitors

Valuation

Metric
M
ROST
TJX
Price/Earnings (Normalized)
5.2124.4428.09
Price/Book Value
1.099.8217.09
Price/Sales
0.192.352.38
Price/Cash Flow
2.4719.0722.59
Price/Earnings
M
ROST
TJX

Financial Strength

Metric
M
ROST
TJX
Quick Ratio
0.250.990.56
Current Ratio
1.381.541.23
Interest Coverage
1.0633.9678.50
Quick Ratio
M
ROST
TJX

Profitability

Metric
M
ROST
TJX
Return on Assets (Normalized)
5.31%14.91%16.36%
Return on Equity (Normalized)
21.39%45.48%69.55%
Return on Invested Capital (Normalized)
10.27%18.94%23.95%
Return on Assets
M
ROST
TJX
See how this stock stacks up to its competitors with Morningstar Investor

Department Stores Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
AEON Co Ltd ADR
AONNY
Tyrcm$18.1 Bil
AEON Co Ltd
AONNF
Nkrfq$18.1 Bil
El Puerto de Liverpool SAB de CV
ELPQF
Jbk$10.2 Bil
Shoprite Holdings Ltd
SRHGF
Yyqgfqf$8.7 Bil
Shoprite Holdings Ltd ADR
SRGHY
Fxwlcnj$8.7 Bil
Marks & Spencer Group PLC
MAKSF
Dyzw$8.3 Bil
Marks & Spencer Group PLC ADR
MAKSY
Wyhj$8.3 Bil
Nordstrom Inc
JWN
QnndkwvbJkb$3.6 Bil
Kohl's Corp
KSS
XqspxftdGtq$2.3 Bil

Sponsor Center