Macy's, Inc. (M) AI Stock Analysis

Macy's, Inc. is an omni-channel retailer offering apparel, accessories, cosmetics, home furnishings, and consumer goods through stores, websites, and mobile applications. The company operates across multiple brands, including Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury. In addition to retail merchandise, the company functions as a beauty products and spa retailer. Originally founded in 1830 and formerly known as Federated Department Stores, Inc., Macy's is headquartered in New York, New York, serving a broad demographic across its physical and digital retail network.

Annual revenue declined over recent years from $25.45B in FY2023 to $23.87B in FY2024, $23.01B in FY2025, and $22.62B in FY2026, marking a 1.7% decrease in FY2026. Gross margin contracted to 36.5% in FY2026 from 40.3% in FY2025, while operating margin improved to 4.6% from 4.0%. Net income reached $642.0M in FY2026, up from $582.0M in FY2025 and $45.0M in FY2024. For the latest quarter ended July 31, 2026, quarterly revenue grew 1.2% year-over-year, and quarterly earnings grew 100.0%. Trailing twelve month revenue stood at $22.78B with an operating margin of 3.2% and return on equity of 16.0%.

As of July 31, 2026, Macy's held $1.29B in cash and short-term investments against total debt of $5.09B, resulting in net debt of $3.79B. Shareholders' equity was $4.93B, yielding a debt-to-equity ratio of 1.03 and a current ratio of 1.59. Total assets stood at $15.73B. In FY2026, the company generated $1.43B in operating cash flow and $1.06B in free cash flow. Capital expenditures were $373.0M, while Macy's returned capital via $250.0M in share buybacks and $197.0M in dividends paid.

Macy's trades at a trailing P/E of 8.8x and a forward P/E of 9.4x, both below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value to EBITDA ratio is 4.9x, compared to 11.1x for its peer median, while its price-to-sales ratio of 0.3x sits below the peer median of 0.7x. The company holds a market capitalization of $6.27B and an enterprise value of $9.60B. Over the past year, Macy's stock rose 38.4%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 21.2% trails the index return of 83.0%.

Macy's pays an annualized forward dividend of $0.77 per share, representing a dividend yield of 3.19% as of October 16, 2026. The company has paid dividends for 24 consecutive years, with a 5-year annualized dividend growth rate of 14.0%. Its payout ratio stands at 33.1%, supported by FY2026 free cash flow of $1.06B.

Wall Street coverage includes 13 analysts, with 1 Strong Buy, 1 Buy, 10 Holds, and 1 Strong Sell rating. The mean price target is $23.18, representing a 3.4% discount to the last close of $24.00 on October 16, 2026. For the current fiscal year ending January 31, 2027, consensus estimates project EPS of $2.32 on revenue of $21.89B. Macy's beat EPS estimates in each of the last 4 quarters, and its next earnings date is December 2, 2026.

This page is an AI-written research summary of Macy's, Inc. (M). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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