Nordstrom Intrinsic Value – NORDSTROM Reports Fourth Quarter FY2023 Earnings on January 31, 2023.
April 6, 2023
Earnings Overview
NORDSTROM ($NYSE:JWN) revealed their earnings results for the fourth quarter of their FY2023 on January 31 2023, with total revenue of USD 119.0 million, a 40.5% decrease from the same period in the previous year. Net income also decreased by 3.7% to USD 4319.0 million.
Stock Price
At the stock market opening, NORDSTROM stock opened at $19.3 and closed at $19.3, up by 1.7% from the previous closing price of $19.0. This marked a positive report for the company, as it was able to maintain a steady growth in the fourth quarter of FY2023. The report showed that NORDSTROM’s sales increased by 4% over the same period of last year.
This growth was driven by an increase in foot traffic in stores and strong online sales. Investors and analysts will be keeping an eye on the company’s future performance to see how the stock market responds to their reports. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nordstrom. More…
| Total Revenues | Net Income | Net Margin |
| 15.53k | 245 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nordstrom. More…
| Operations | Investing | Financing |
| 946 | -393 | -186 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nordstrom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.74k | 8.01k | 4.62 |
Key Ratios Snapshot
Some of the financial key ratios for Nordstrom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | -16.0% | 3.1% |
| FCF Margin | ROE | ROA |
| 3.0% | 44.1% | 3.4% |
Analysis – Nordstrom Intrinsic Value
We at GoodWhale conducted an analysis of NORDSTROM‘s wellbeing, and our proprietary Valuation Line revealed that the intrinsic value of NORDSTROM shares is around $52.4. However, currently, the stock is trading at $19.3, which is undervalued by a whopping 63.2%. We believe this presents an attractive opportunity for investors looking to capitalize on the stock’s potential as it is trading well below its intrinsic value. More…
Peers
The retail market is a fiercely competitive one, and nowhere is this more apparent than in the battle between Nordstrom Inc and its rivals Kohl’s Corp, Macy’s Inc, and Chiyoda Co Ltd. All four companies are vying for a share of the market, and each has its own unique strengths and weaknesses. Nordstrom Inc is a leading retailer in the United States, with a strong presence in both online and brick-and-mortar sales. Kohl’s Corp is a close second, with a large number of stores across the country and a growing online business. Macy’s Inc is a bit of an underdog in this fight, but it has a long history and a loyal customer base. Chiyoda Co Ltd is the smallest of the four companies, but it is the only one with a significant presence in Asia.
The competition between these four companies is fierce, and it shows no signs of slowing down. Each company is fighting for a larger share of the market, and they are all doing whatever it takes to win. The customer is the ultimate winner in this battle, as they are the ones who benefit from the lower prices and better selection that come from a competitive market.
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is a large retail company with a market cap of 3.37B as of 2022. The company has a Return on Equity of 16.46%. Kohl’s Corp is a retailer that operates primarily in the United States. The company offers a wide variety of merchandise, including clothing, footwear, and home goods. Kohl’s also offers a variety of services, such as credit card services and gift cards.
– Macy’s Inc ($NYSE:M)
Macy’s Inc is an American department store chain founded in 1858. It is one of the largest department store chains in the United States, with around 850 stores in 45 states. Macy’s Inc has a market cap of $5.14B as of 2022 and a Return on Equity of 40.81%. The company operates Macy’s and Bloomingdale’s department stores, as well as the macys.com and bloomingdales.com websites. Macy’s Inc also owns and operates the Macy’s Thanksgiving Day Parade and the Fourth of July Fireworks Celebration.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda Co Ltd is a Japanese company that provides engineering, construction, and other services. The company has a market capitalization of 25.03 billion as of 2022 and a return on equity of -2.63%. The company’s main businesses include oil and gas, chemicals, power, and infrastructure. Chiyoda has been involved in some of Japan’s largest projects, including the Tokyo Skytree and the Tokyo Olympics Stadium.
Summary
Investing in NORDSTROM has become more uncertain as the company reported a lower revenue for the fourth quarter of FY2023. Total revenue for the quarter was USD 119.0 million, a 40.5% decrease compared to the same period last year. This decrease in revenue was coupled with a 3.7% decrease in net income, which amounted to USD 4319.0 million.
Despite these declines, investors may still find opportunities when analyzing NORDSTROM’s performance using an array of metrics such as revenue growth, cost optimization, and market share. Investors should carefully assess the risks associated with investing in NORDSTROM before making any decisions.
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