Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Macy's Inc. (NYSE: M) is an omnichannel retail company operating stores, websites, and mobile applications under three brands: Macy’s Bloomingdale’s, and Bluemercury. The company sells a wide range of merchandise which includes apparel and accessories, cosmetics, home furnishing, and other consumer goods. Kalkine’s Global Big Money Report covers the Key Financial Metrics, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders have been highlighted in the chart below, which together forms ~40.05% of the total shareholding.

1.4 Key Metrics:

The company has reported net margin of 4.7% in FY 2023 as compared to the industry median of 4.3%. Its Debt/Equity ratio stood at 0.74x in FY 2023 as compared to 0.92x in FY 2022. Therefore, it could be said that the company is having decent leverage position.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

2.2 Insights of Financial Performance:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed a decline of ~6.69% in six months. The stock has a 52-week high and 52-week low of USD 27.3 and USD 15.1, respectively, and is currently trading below the above the average of 52-week high-low average. Macy's Inc. (NYSE: M) was last covered in a report dated ‘1^st March 2023’.

4.2 Fundamental Valuation

Valuation Methodology: Price/ Earnings Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 18, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

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