Macy's Stock Analysis - is Macy's Stock a Good Investment Today - $M Stock Analysis | Summary and Q&A

TL;DR

Macy's stock has declined over the past year, but their impressive dividend yield of 10% and potential real estate value make it a cautious investment.

Key Insights

• ❓ Macy's stock has declined due to declining revenue and earnings per share.
• 🏃 The closure of underperforming stores could benefit investors in the long run.
• 🤣 Macy's valuable real estate properties could act as a floor for the stock price and generate additional profits.
• 🏃 A REIT spinoff could create value and potentially stabilize the stock price in the long run.
• ❓ Macy's dividend yield is attractive at around 10%.
• 🤣 Volatility and the potential loss of real estate floor are concerns for investors.
• 🌱 Management's plans to build a skyscraper on top of their flagship store could further generate profits.

Transcript

Hi I'm Jimmy in this video we're looking at Macy's ticker symbol M, now Macy's stock has really been beaten down recently down more than 50 percent over the past year. And that's accounting for their very impressive dividend yield of right around 10 percent. So why did Macy's stock fall. How much do we think it's worth now and do we think it's a go... Read More

Questions & Answers

Q: Why has Macy's stock fallen, and is it worth investing in at its current price?

Macy's stock has fallen due to declining revenue and earnings per share. The stock is currently priced at its fair value, making it a cautious investment choice.

Q: What is the significance of Macy's store count and real estate ownership?

Macy's store count has been declining, but this could benefit investors if underperforming stores are closed. Macy's owns valuable real estate properties, which could act as a floor for the stock price and provide potential additional profits.

Q: What is the potential impact of a real estate investment trust (REIT) spinoff for Macy's?

A REIT spinoff could create two separate entities - Macy's stock and the REIT. While Macy's stock price could initially fall, the REIT could hold significant value due to valuable real estate properties.

Q: How is Macy's dividend and dividend coverage ratio?

Macy's dividend history shows an impressive dividend yield of around 10%. Over the past 12 months, they have had a dividend coverage ratio of more than two, indicating they have more than enough profits to maintain the current dividend level.

Summary & Key Takeaways

• Macy's revenue and earnings per share have been declining, with analysts projecting further decline in the future.

• Macy's store count has also been decreasing, but the closure of underperforming stores could benefit investors in the long run.

• Macy's owns valuable real estate properties, which they have been selling to raise capital for business revamp.