Macy’s Intrinsic Value – MACY’S Reports Second Quarter Earnings Results for FY2024
August 31, 2023
🌥️Earnings Overview
On August 22, 2023, Macy’s ($NYSE:M) reported their financial results for the quarter ending July 31, 2023, with total revenue of USD 5280.0 million, a decrease of 9.0% from the same period in FY2024. Net income was USD -22.0 million, compared to a net income of USD 275.0 million in the second quarter of the prior fiscal year.
Share Price
On Tuesday, MACY’S reported its second quarter earnings for FY2024. The results were not well received by investors. The stock opened at $13.6 and closed at $12.7, meaning that it plunged by 14.1% from its previous closing price of $14.7. MACY’S attributed the decline to the pandemic and its impact on its overall business. The company noted that the majority of its stores remain closed, resulting in a decrease in sales and customer traffic. Furthermore, the cost of digital marketing and investments in e-commerce initiatives contributed to the lower profitability of the business.
MACY’S is now focusing on reviving its online and mobile presence to improve customer engagement and regain market share. It is also investing in digital customer relationship management solutions to better understand customer behaviour and preferences. Overall, investors are becoming increasingly cautious of MACY’S earnings potential and are closely monitoring further developments. The company must continue to invest strategically in its digital capabilities and drive customer engagement in order to regain market share and turn around its current financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Macy’s. More…
| Total Revenues | Net Income | Net Margin |
| 24.41k | 749 | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Macy’s. More…
| Operations | Investing | Financing |
| 1.58k | -1.19k | -260 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Macy’s. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.3k | 12.09k | 15.3 |
Key Ratios Snapshot
Some of the financial key ratios for Macy’s are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | 14.2% | 4.5% |
| FCF Margin | ROE | ROA |
| 1.3% | 16.5% | 4.2% |
Analysis – Macy’s Intrinsic Value
At GoodWhale, we have conducted a detailed analysis of MACY’S financials. Our proprietary Valuation Line has provided an intrinsic value of around $22.0 for the company. This indicates that MACY’S share is currently trading at $12.7, which is undervalued by 42.2%. This presents a great opportunity for investors, who can take advantage of the discrepancy between the current market price and our estimated intrinsic value. More…
Peers
Macy’s Inc, World Co Ltd, Kohl’s Corp, and PT Ramayana Lestari Sentosa Tbk are all retail companies.
– World Co Ltd ($TSE:3612)
As of 2022, World Co Ltd has a market cap of 46.04B and a Return on Equity of 4.14%. The company is engaged in the business of providing online services. It offers a range of services, including online search, advertising, maps, software applications, and cloud computing.
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is an American department store retail chain. The company has a market capitalization of $3.56 billion as of 2022 and a return on equity of 16.46%. Kohl’s operates 1,158 stores in 49 states. The company offers a wide variety of merchandise, including apparel, shoes, cosmetics, and home goods. Kohl’s is known for its discount pricing and extensive promotions.
– PT Ramayana Lestari Sentosa Tbk ($IDX:RALS)
Ramayana Lestari Sentosa Tbk is an Indonesian conglomerate with interests in retail, malls, and real estate. The company has a market cap of 3.67 trillion as of 2022 and a return on equity of 6.89%. The company was founded in 1973 and is headquartered in Jakarta, Indonesia.
Summary
Macy’s reported their second-quarter earnings results for FY2024 with total revenue of $5280 million, a decrease of 9% from the same period the previous year. Their net income was reported to be -$22 million, compared to a net income of $275 million the previous year. This caused their stock price to move down on the same day. For investors, this could be an indication of fiscal pressure, though it is likely not indicative of long-term trends.
Analyzing the company’s performance in comparison to its major competitors may help investors make an informed decision about the future of Macy’s. It is important to note, however, that both the stock market and the economy could remain volatile in the coming quarters.
