📊 M Key Takeaways
Is Macy's, Inc. (M) a Good Investment?
Macy's exhibits severe financial distress with interest coverage of 0.8x, indicating inability to service debt from operations. Despite 3.9% revenue growth, profitability remains critically weak (1.3% net margin, 0.4% ROA), suggesting fundamental business challenges in a mature retail segment.
Macy's shows modest top-line growth, but that growth is not translating into durable earnings power: operating margin is just 1.9%, net margin is 0.9%, and net income is flat year over year. Financial flexibility also looks constrained, with negative free cash flow, a very weak 0.18x quick ratio, and only 1.8x interest coverage, which raises concerns about the quality and sustainability of current results.
Macy's, Inc. Key Strengths (M)
- Positive free cash flow of $204M provides near-term liquidity buffer
- Modest revenue growth of 3.9% YoY demonstrates market resilience
- Reasonable debt-to-equity ratio of 0.50x limits leverage risk relative to assets
- Revenue grew 3.2% year over year, indicating the business is still generating sales growth
- Debt/equity of 0.56x and positive stockholders' equity suggest leverage is not excessive on a balance-sheet basis
- Current ratio of 1.25x indicates near-term obligations are currently covered at a basic level
M Stock Risks: Macy's, Inc. Investment Risks
- Interest coverage of 0.8x indicates operating income cannot cover interest expense—unsustainable debt service
- Critically low profitability metrics (1.3% net margin, 0.4% ROA, 1.3% ROE) show minimal shareholder value creation
- Flat net income growth (0.0% YoY) despite 3.9% revenue increase signals margin compression and operational stress
- Profitability is extremely thin, with 1.9% operating margin and 0.9% net margin leaving little room for execution errors
- Free cash flow is negative because operating cash flow does not cover capital expenditures
- Interest coverage of 1.8x and a 0.18x quick ratio point to weak liquidity and limited cushion if operating conditions soften
Key Metrics to Watch
- Interest coverage ratio—must exceed 1.5x to signal debt sustainability
- Operating margin expansion—structural improvement needed to generate debt service capacity
- Quick ratio deterioration—indicator of liquidity stress given inventory-dependent business model
- Operating margin and interest coverage
- Operating cash flow minus capital expenditures (free cash flow)
Macy's, Inc. (M) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.2% FCF margin may limit capital allocation flexibility.
M Profit Margin, ROE & Profitability Analysis
M vs Consumer Sector: How Macy's, Inc. Compares
How Macy's, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Macy's, Inc. Stock Overvalued? M Valuation Analysis 2026
Based on fundamental analysis, Macy's, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Macy's, Inc. Balance Sheet: M Debt, Cash & Liquidity
M Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Macy's, Inc.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $0.16 reflects profitable operations.
M Revenue Growth, EPS Growth & YoY Performance
M Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.6B | $38.0M | $0.13 |
| Q3 2025 | $4.7B | $11.0M | $0.04 |
| Q2 2025 | $4.8B | $38.0M | $0.31 |
| Q1 2025 | $4.6B | $38.0M | $0.13 |
| Q3 2024 | $4.7B | -$19.0M | $-0.07 |
| Q2 2024 | $4.9B | -$22.0M | $-0.08 |
| Q1 2024 | $4.8B | $62.0M | $0.22 |
| Q3 2023 | $4.9B | -$22.0M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Macy's, Inc. Dividends, Buybacks & Capital Allocation
M SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Macy's, Inc. (CIK: 0000794367)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780951562.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780951501.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780951358.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780951307.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/wk-form4_1780951115.xml | View → |
❓ Frequently Asked Questions about M
What is the AI rating for M?
Macy's, Inc. (M) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are M's key strengths?
Claude: Positive free cash flow of $204M provides near-term liquidity buffer. Modest revenue growth of 3.9% YoY demonstrates market resilience. ChatGPT: Revenue grew 3.2% year over year, indicating the business is still generating sales growth. Debt/equity of 0.56x and positive stockholders' equity suggest leverage is not excessive on a balance-sheet basis.
What are the risks of investing in M?
Claude: Interest coverage of 0.8x indicates operating income cannot cover interest expense—unsustainable debt service. Critically low profitability metrics (1.3% net margin, 0.4% ROA, 1.3% ROE) show minimal shareholder value creation. ChatGPT: Profitability is extremely thin, with 1.9% operating margin and 0.9% net margin leaving little room for execution errors. Free cash flow is negative because operating cash flow does not cover capital expenditures.
What is M's revenue and growth?
Macy's, Inc. reported revenue of $4.9B.
Does M pay dividends?
Macy's, Inc. pays dividends, with $50.0M distributed to shareholders in the trailing twelve months.
Where can I find M SEC filings?
Official SEC filings for Macy's, Inc. (CIK: 0000794367) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is M's EPS?
Macy's, Inc. has a diluted EPS of $0.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is M's fundamental grade?
Based on our AI fundamental analysis in June 2026, Macy's, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is M stock overvalued or undervalued?
Valuation metrics for M: ROE of 1.3% (sector avg: 18%), net margin of 1.3% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is M's AI grade for 2026?
Our dual AI analysis gives Macy's, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is M's free cash flow?
Macy's, Inc.'s operating cash flow is $292.0M, with capital expenditures of $88.0M. FCF margin is 4.2%.
How does M compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.3% (avg: 8%), ROE 1.3% (avg: 18%), current ratio 1.48 (avg: 1.5).