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Published byFrancis Cameron Modified over 9 years ago
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Nordstrom Inc. (JWN) Michael Dietrich 11/2/11
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Business Summary Retailer that offers apparel, shoes, cosmetics, and accessories for men and women. 222 stores. 117 full line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure and bond store, and 1 clearance store. 90% revenue comes from its retail stores, the other from website, catalog, and private label credit card.
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Key Statistics Recent Price: $50.52Div.& Yield:.92 (1.80%) Fair Value: $43.00 Consider Buy:$25.80 Consider Sell:$66.70 Market Cap:$10.69B P/E (ttm):16.71 EPS (ttm):3.01
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Key Statistics Cont.
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1 Year Chart
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5 Year Comparative Chart
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Stock Checklist Criteria Requirements:CompanyIndustryGood / Bad Solvency and Financial Leverage Ratios:3.69 Current Ratio > 11.852 good Debt Ratio < Industry Average139.8929.19 bad Efficiency Ratios: Total Asset Turnover > Industry Average1.36 good Inventory Turnover > Industry Average5.625.05 good Profitability Ratios: Net Profit Margin > Industry Average6.387.21 bad Return on Asset (ROA) > Industry Average9.8712.01 bad Return on Equity (ROE) > Industry Average35.0619.88 good Growth Ratio (5 years): Historical EPS Growth > Industry Average6.7711.36 bad Historical Revenue Growth > Industry Average4.6611.72 bad Projected EPS Growth >10%* and > industry Average6.7711.36 bad Other Informative Data: P/E16.6422.17 P/B5.374.29 PEG1.2N/A Fair Value Estimate Current Price (10/17/2011) Purchase Price Dividend$0.76 Dividend Yield >2%**1.83%2.16
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SWOT (Strengths) They have managed inventory levels during the economic downturn Added an IT department Online sales continue to grow
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SWOT(Weakness) Credit card business adds an element of risk for the company Sells mainly discretionary goods, exposed to economic swings
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SWOT(Opportunities) 122 stores domestically so still room for expansion Mobile check out devices
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SWOT(Threats) High competition Saks offers affordable luxury items Macy’s upgrading its merchandise assortment Consumer Spending (cyclical)
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Wall St. Recommendations
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Morningstar Recommendations Buy: 12 Outperform:2 Hold: 5 Underperform: 0 Sell: 1
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