Macy's, Inc. (M) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Macy's, Inc. (M) Consumer Business Overview

Macy's, Inc. is a major omni-channel retailer operating department stores under the Macy's and Bloomingdale's brands, offering apparel, accessories, cosmetics, and home goods. With a focus on enhancing the customer experience through digital and physical channels, Macy's competes in a dynamic retail landscape against both traditional and online retailers.

What Is the Investment Thesis for M?

Macy's, Inc. presents a mixed investment case. The company's established brand recognition and omni-channel presence provide a stable customer base. With a P/E ratio of 8.79 and a dividend yield of 3.79%, Macy's offers potential value and income. However, the company operates in a highly competitive and evolving retail landscape. Key growth catalysts include enhancing the digital customer experience and expanding its off-price Macy's Backstage concept. Potential risks include changing consumer preferences and increased competition from online retailers. Monitoring the company's ability to maintain its gross margin of 36.5% and adapt to market trends is crucial. The company's beta of 1.52 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

M Key Highlights

Market capitalization of $5.49B reflects its position as a major player in the department store sector.

• P/E ratio of 8.79 suggests a potentially undervalued stock compared to its earnings.
• Gross margin of 36.5% indicates the company's ability to manage its cost of goods sold effectively.
• Dividend yield of 3.79% provides an attractive income stream for investors.
• Beta of 1.52 indicates higher volatility compared to the market, suggesting potentially larger price swings.

Who Are M's Competitors?

M is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are M's Key Strengths?

Strong brand recognition and customer loyalty.

• Extensive network of department stores.
• Omni-channel presence with integrated online and offline shopping experiences.
• Diverse portfolio of brands catering to different consumer segments.

What Are M's Weaknesses?

High operating costs associated with maintaining a large store footprint.

• Vulnerability to changing consumer preferences and fashion trends.
• Intense competition from online retailers and discount stores.
• Dependence on seasonal sales and promotions.

What Could Drive M Stock Higher?

M catalyst: Continued expansion of Macy's Backstage locations to capture a larger share of the off-price market.

• Enhancement of digital capabilities and the online shopping experience to drive e-commerce sales.
• Strategic partnerships and collaborations with other brands to attract new customers.
• Potential acquisitions or mergers to expand the company's reach and product offerings.
• Continued efforts to optimize the store footprint and improve operational efficiency.

What Are the Key Risks for M?

Insider selling — insiders were net sellers of roughly $4.5M recently.

• Increased competition from online retailers and discount stores could erode market share.
• Economic downturns and reduced consumer spending could negatively impact sales and profitability.
• Changing consumer preferences and fashion trends could lead to inventory obsolescence.
• Disruptions in the supply chain and increased costs of goods could reduce profit margins.
• High operating costs associated with maintaining a large store footprint.

What Are the Growth Opportunities for M?

• Expansion of Macy's Backstage: Macy's Backstage, the company's off-price concept, presents a significant growth opportunity. By opening more Backstage locations and integrating them within existing Macy's stores, the company can attract value-conscious shoppers and capture a larger share of the off-price market. The off-price retail market is estimated to be worth over $30 billion and is expected to grow in the coming years, driven by increasing consumer demand for discounted merchandise. Timeline: Ongoing expansion.
• Enhancing the Digital Customer Experience: Investing in digital capabilities and enhancing the online shopping experience is crucial for Macy's to remain competitive. This includes improving website functionality, mobile app features, and personalized marketing efforts. The e-commerce market is growing rapidly, and Macy's can capitalize on this trend by providing a seamless and engaging online shopping experience. The global e-commerce market is projected to reach $6 trillion by 2026. Timeline: Ongoing.
• Bloomie's Expansion: The Bloomie's concept, a smaller-format store, allows Macy's to enter new markets and cater to a different demographic. By opening more Bloomie's locations in urban areas and lifestyle centers, the company can expand its reach and attract younger shoppers. The small-format retail market is growing as retailers seek to adapt to changing consumer preferences and urban environments. Timeline: Ongoing.
• Bluemercury Expansion: Expanding the Bluemercury beauty products and spa retail business presents another growth opportunity for Macy's. By opening more Bluemercury locations and offering a wider range of beauty products and services, the company can capitalize on the growing demand for beauty and wellness products. Timeline: Ongoing.
• Strategic Partnerships and Collaborations: Collaborating with other brands and retailers can help Macy's attract new customers and expand its product offerings. This includes partnering with popular brands to create exclusive collections and collaborating with other retailers to offer complementary products and services. Strategic partnerships can help Macy's differentiate itself from competitors and enhance its brand image. Timeline: Ongoing.

What Are M's Competitive Advantages?

• Established brand recognition and reputation.
• Extensive network of department stores across the United States.
• Omni-channel presence with integrated online and offline shopping experiences.
• Loyalty programs that incentivize repeat purchases.
• Strategic partnerships with leading brands and suppliers.

What Does M Do?

Macy's, Inc., tracing its roots back to 1830, has evolved into a prominent omni-channel retail organization. Originally founded as a dry goods store, the company has grown through strategic acquisitions and expansions, transforming into a modern department store chain. Macy's operates a diverse portfolio of brands, including Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury. These brands cater to a wide range of consumer preferences and price points. As of January 29, 2022, Macy's operated 725 department stores across the United States, including locations in the District of Columbia, Puerto Rico, and Guam, as well as licensed stores in Dubai, the United Arab Emirates, and Al Zahra, Kuwait. The company's core business involves the sale of apparel and accessories for men, women, and children, along with cosmetics, home furnishings, and other consumer goods. Macy's also operates as a beauty products and spa retailer through its bluemercury brand, further diversifying its revenue streams. The company changed its name from Federated Department Stores, Inc. to Macy's, Inc. in June 2007, marking a significant milestone in its brand evolution. Macy's is headquartered in New York, New York.

What Products and Services Does M Offer?

• Operates department stores under the Macy's and Bloomingdale's brands.
• Sells apparel and accessories for men, women, and children.
• Offers cosmetics, fragrances, and beauty products.
• Provides home furnishings, including furniture, bedding, and decor.
• Operates e-commerce websites and mobile applications for online shopping.
• Runs off-price retail stores under the Macy's Backstage brand.
• Operates smaller-format stores under the Bloomie's brand.
• Provides beauty products and spa services through Bluemercury.

How Does M Make Money?

• Retail sales of merchandise through department stores, websites, and mobile applications.
• Operation of off-price retail stores under the Macy's Backstage brand.
• Operation of smaller-format stores under the Bloomie's brand.
• Provision of beauty products and spa services through Bluemercury.
• Licensing agreements for international operations.

What Industry Does M Operate In?

Macy's, Inc. operates within the competitive department store industry, which is undergoing significant transformation due to the rise of e-commerce and changing consumer preferences. The industry is characterized by intense competition from online retailers, specialty stores, and off-price retailers. Companies like Macy's are adapting by investing in omni-channel capabilities, enhancing the customer experience, and optimizing their store footprint. The market is also seeing a shift towards experiential retail and personalized shopping experiences. The global department store market is expected to continue to evolve, with growth opportunities in emerging markets and online channels.

Who Are M's Key Customers?

• Men, women, and children seeking apparel, accessories, and footwear.
• Consumers looking for cosmetics, fragrances, and beauty products.
• Individuals and families purchasing home furnishings and decor.
• Value-conscious shoppers seeking discounted merchandise at Macy's Backstage.
• Customers seeking beauty products and spa services at Bluemercury.

Over the past six months, Macy's, Inc. insiders filed 83 SEC Form 4 transactions — 43 sales and 40 purchases. On net that is roughly 519K shares acquired (about $4.5M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Macy's, Inc.

Revenue for Macy's, Inc. came in at $167.0M during Aug 2026, a 96.6% contraction versus the preceding quarter. The company recorded net income of $222.0M, with diluted EPS of $0.82. Revenue has contracted over three consecutive quarters, which investors in this mid-cap Consumer Cyclical stock should monitor closely. Across the four most recent quarters, M averaged $0.73 in diluted EPS.

M Valuation & Market Position

With a $5.49B market cap, Macy's, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $22.00 to $30.00, with a consensus of $23.80. At the current price of $20.88, that implies approximately 14% upside potential. Relative to its peer group, M's quantitative score of 78/100 is above the peer average of 64/100.

Return on equity for Macy's, Inc. stands at 14.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. M trades at a trailing price-to-earnings ratio of 8.79, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 25.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.48 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 11.4%, the inverse of the P/E and a quick read on earnings relative to price.

Macy's, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.85 places it in the grey zone, a middle ground that warrants monitoring.

Macy's, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 143.6% above estimates on average.

Wall Street analysts project Macy's, Inc. revenue of about $21.72B for fiscal 2027, with EPS near $2.24. The estimate reflects 7 contributing analysts.

Company Profile

Macy's, Inc. operates in the Department Stores industry within the Consumer Cyclical sector. It is headquartered in New York City, US. The company is led by CEO Antony Spring. M has traded publicly since 1992.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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