Has Sandy Offered a Buying Opportunity for Macy’s Stock?

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Macy’s barely qualifies for ‘Normal.’ It’s a little on the high side, but there are much weaker situations out there. Macy’s debt-to-equity ratio is also weaker than competitors, J.C. Penney Company (NYSE:JCP) and Target Corporation (NYSE:TGT). In regards to cash vs. long-term debt, there is room for improvement. .

Debt-To-Equity

Cash

Long-Term Debt

M

1.25

$1.26 Billion

$6.94 Billion

JCP

.84

$525 Million

$2.94 Billion

TGT

1.14

$1.47 Billion

$18.55 Billion

 

T = Technicals on the Stock Chart Are Average

Macy’s had a great run over the past three years, but the stock has traded sideways over the past three months. It has also performed poorly over the past month.  

1 Month

Year-To-Date

1 Year

3 Year

M

-5.92%

22.88%

20.38%

153.70%

JCP

-22.91%

-47.79%

-44.89%

-30.54%

TGT

-1.31%

24.22%

18.57%

44.72%

 

At $38.92, Macy’s is currently trading close to all its averages.

50-Day SMA

39.43

100-Day SMA

38.65

200-Day SMA

38.29

 

E = Earnings and Revenue Are Inconsistent

Revenue and earnings for Macy’s wildly inconsistent over the past five years, but 2012 has seen improvement in both areas.

2008

2009

2010

2011

2012

Revenue ($)in billions

26.31

24.89

23.49

25.00

26.40

Diluted EPS ($)

1.97

-11.34

.78

1.98

2.92

 

Quarterly revenue and earnings tell the same story in a relative sense.  

10/2011

1/2012

4/2012

7/2012

10/2012

Revenue ($)in billions

5.85

8.72

6.14

6.12

6.08

Diluted EPS ($)

.32

1.75

.43

.67

.36

 

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