📊 M Key Takeaways
Is Macy's, Inc. (M) a Good Investment?
Macy's demonstrates deteriorating financial health with negative free cash flow (-25M), razor-thin net margins (0.9%), and weak profitability metrics (ROE 3.1%, ROA 0.8%) that fail to justify its debt burden. The company's capital intensity exceeds operating cash generation, and interest coverage of 1.8x indicates limited debt service cushion in an economically sensitive retail sector.
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.
Why Buy Macy's, Inc. Stock? M Key Strengths
- Modest revenue growth of 3.2% YoY suggests stabilization in a challenged sector
- Solid gross margin of 65.9% indicates reasonable pricing power on merchandise
- Quick debt reduction potential with manageable debt-to-equity ratio of 0.56x
- 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
- Negative free cash flow (-25M) signals insufficient cash generation to fund operations and capital needs
- Extremely low net margin of 0.9% and operating margin of 1.9% provide minimal buffer for downturns
- Weak interest coverage ratio of 1.8x creates debt service vulnerability; high leverage relative to thin profitability
- Quick ratio of 0.18x indicates severe liquidity constraints for short-term obligations
- Return metrics (ROE 3.1%, ROA 0.8%) substantially below cost of capital, destroying shareholder value
- 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
- Free cash flow trend and path to positive conversion
- Operating margin expansion and cost structure efficiency
- Debt refinancing risks and debt/EBITDA trajectory
- Same-store sales and comparable store growth
- Capital expenditure requirements and maintenance levels
- 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
Macy's, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $5.1B | -$22.0M | $-0.08 |
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 |
|---|---|---|---|
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775593103.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775593046.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775592988.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775592915.xml | View → |
| Apr 7, 2026 | 4 | xslF345X06/wk-form4_1775592844.xml | View → |
❓ Frequently Asked Questions about M
What is the AI rating for M?
Macy's, Inc. (M) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are M's key strengths?
Claude: Modest revenue growth of 3.2% YoY suggests stabilization in a challenged sector. Solid gross margin of 65.9% indicates reasonable pricing power on merchandise. 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: Negative free cash flow (-25M) signals insufficient cash generation to fund operations and capital needs. Extremely low net margin of 0.9% and operating margin of 1.9% provide minimal buffer for downturns. 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 $14.7B.
Does M pay dividends?
Macy's, Inc. pays dividends, with $149.0M 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 $0.48.
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 rating reflects both perspectives for balanced insights.
Is M a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Macy's, Inc. has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is M stock overvalued or undervalued?
Valuation metrics for M: ROE of 3.1% (sector avg: 18%), net margin of 0.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy M stock in 2026?
Our dual AI analysis gives Macy's, Inc. a combined SELL rating 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 $247.0M, with capital expenditures of $272.0M. FCF margin is -0.2%.
How does M compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 0.9% (avg: 8%), ROE 3.1% (avg: 18%), current ratio 1.25 (avg: 1.5).