Macy's (NYSE:M) is a well-known American department store chain that offers a wide range of products, including clothing, accessories, and home goods. The company is undergoing a strategic transformation to improve its financial health and market position. This involves closing unprofitable stores and expanding smaller-format locations. Macy's competes with other major retailers like Nordstrom and Kohl's.
On March 18, 2026, Macy's is set to release its quarterly earnings. Analysts expect an earnings per share (EPS) of $1.57 and revenue of approximately $7.51 billion. However, recent estimates suggest an EPS of $1.55, a 13.9% decrease from the previous year. Revenue is projected at $7.52 billion, reflecting a 3.1% decline from the same quarter last year.
Macy's is rated as a Buy due to its strategic overhaul and perceived undervaluation. The company has a price-to-earnings (P/E) ratio of 7.4 and a free cash flow yield of 22.2%, supporting a dividend yield of 4.38%. These metrics suggest that Macy's is undervalued based on its real estate and operating metrics.
The management team aims for low single-digit growth in comparable sales and mid-single-digit growth in EBITDA by 2026, despite short-term revenue declines. Macy's enterprise value to sales ratio is approximately 0.41, and its enterprise value to operating cash flow ratio is around 5.99, indicating a solid valuation relative to its sales and cash flow.
Macy's financial health is further supported by an earnings yield of approximately 10.52% and a debt-to-equity ratio of about 1.21. The current ratio of approximately 1.25 indicates the company's ability to cover short-term liabilities with short-term assets, reflecting a stable financial position.
