Macy’s Show Me The Money – CWEB.com
Macy’s (M) posted strong Q4 2017 results and provided FY 2018 guidance that was well ahead of consensus.
Macy’s reported a better-than-expected 4Q 2017, reporting positive owned store comps for the first time since 4Q 2014.
Macy’s dividend (5.50% yield) is conservatively supported by free cash flow and is not at risk of being cut any time soon.
Macy’s trades at a discount relative to historical valuation multiples and peers.
The mortgage-free real estate portfolio is probably worth more than $20 billion vs. stock market value of $7.5 billion.
Free cash flow of $1.2 billion easily supports 6% dividend.
Brookfield Asset Management’s redevelopment plans for 50 Macy stores should begin to bear fruit 2nd half 2018.
Macy’s competitors are:
Sears (NASDAQ:SHLD) which trades around $2.60 with a huge upside coming soon after ER March 14th
Groupon (NASDAQ:GRPN) which trades around $5 with a huge upside this year
Overstock (NASDAQ:OSTK) which trades $60
Dillards (NYSE:DDS) which trades $88
Nordstrom (NYSE:JWN) which trades $52 with a huge upside this year
Macys (NYSE:M) which trades $30 with a huge upside this year
Walmart (NYSE:WMT) which trades around $88
Etsy (NASDAQ:ETSY) which trades around $25
Gap (NYSE:GPS) which trades around $34
BABA (NYSE:BABA) which trades around $180
Amazon ( NASDAQ:AMZN) which trades around $1500
CWEB Analyst’s reiterates a Buy Rating for Macy’s (M) and a Price Target of below $40 within 12 months
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