Macy's: Strong And Undervalued Compared To Peer Group
PEG ratio: 1.09. This PEG ratio, a better indication of a stocks valuation than PE, is low by most standards and points to the company being valued below its peers.
SKS: 1.98 JWN: 1.26 EV/EBIDA: 6.2. This is yet another barometer of valuation and indicates that all three of these companies are below the recommended threshold of 10, but that M is the cheapest amongst its peer group.
SKS: 7.42 JWN: 7.88 Return on equity: 21.93%. MSN Money speaks of this 1 year ROE as being "stellar" and this points to the fact that M is utilizing stockholder equity well. Though the figure is not as high as JWN, M is a lot larger and has not put forth the capital into its operation than JWN has in the past several years.
SKS: 5.48% JWN: 36.05% Cash-Debt: -$5.86 Billion. This is one point of weakness within M's financials. The company is holding a large amount of debt, but because of cash flow, the debt level is not unmanageable.
SKS: -$299 million JWN: -$1.86 billion Dividend: 2.2%. M pays a very healthy dividend, which is higher than its competitors. Although the stock is by no means "high-yielding" this gives investors a higher income stream than its competitors.