Nordstrom logged a 2.43% change Friday, and is now trading at a price of $19.8 per share. The S&P 500 index moved 1.6% and the Nasdaq posted a 2.07% change.
Nordstrom shares moved -15.56% over the last 52 weeks, with a high of $28.8 and a low of $15.53. During this time, the stock lagged the S&P 500 index by -11.86%. As of January 2022, the company's 50-day average price is $19.04. Nordstrom, Inc., a fashion retailer, offers clothing, shoes, beauty, accessories, and household items for women, men, young adults, and children. The mid-cap Consumer Discretionary company is based in Seattle, WA. Nordstrom has returned a 4.0% dividend yield over the last 12 months.
Higher Operating Margins Than the 4.35% Industry Average But Worrisome Debt Levels and Declining Earnings:
| 2019-02-02 | 2020-02-01 | 2021-01-30 | 2022-01-29 | |
|---|---|---|---|---|
| Revenue (MM) | $15,860 | $15,524 | $10,715 | $14,789 |
| Revenue Growth | n/a | -2.12% | -30.98% | 38.02% |
| Gross Margins | 33.58% | 33.5% | 59.06% | 65.91% |
| Gross Margins Growth | n/a | -0.24% | 76.3% | 11.6% |
| Operating Margins | 2.81% | 37.83% | 18.11% | 31.83% |
| Operating Margins Growth | n/a | 1246.26% | -52.13% | 75.76% |
| Earnings Per Share | $3.58 | $3.19 | -$4.37 | $1.12 |
| EPS Growth | n/a | -10.89% | -236.99% | 125.63% |
| Diluted Shares (MM) | 158 | 156 | 158 | 159 |
| Free Cash Flow (MM) | $642 | $301 | -$733 | $199 |
| FCF Growth | n/a | -53.12% | -343.52% | 127.15% |
| Capital Expenditures (MM) | $654 | $935 | $385 | $506 |
| LT Debt to Equity | 3.08 | 2.73 | 10.72 | 4.91 |
Nordstrom Is Overvalued:
Compared to the Consumer Discretionary sector's average of 22.33, Nordstrom has a trailing twelve month P/E ratio of 9.47 and, according to its EPS guidance of 1.94, an expected P/E ratio of 10.21.
Nordstrom's P/B ratio is 4.644 compared to its sector average of 3.12. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 75.22% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 1.23 * 4.616) = $11.3
16 analysts are following Nordstrom and have set target prices ranging from $12.0 to $22.0 per share. On average, they have given the company a rating of hold. At the current price of $19.8, JWN is trading 7.03% away from its average analyst target price of $18.5 per share, implying an analyst consensus of little upside potential for the stock.
