NORDSTROM FINANCIAL ANALYSIS

Nordstrom Financial Analysis

Nordstrom Financial Analysis

Introduction

Business Summary Retail - Apparel and Accessory Stores

Nordstrom is a fashion specialty retailer of clothing, shoes and accessories for men, women and children. As of Jan 31 2009, Co. provided several brand name and private label merchandise through multiple retail channels, including 109 full-line Nordstrom stores, 56 off-price Nordstrom Rack stores, two Jeffrey boutiques, two Last Chance clearance stores, its catalogs and through its online store. Co.'s stores are located throughout the U.S. Through its wholly owned federal savings bank, Nordstrom fsb, Co. also provides a private label card, two Nordstrom VISA credit cards and a debit card for Nordstrom purchases.

PROFITABILITY RATIOS

 

Company

Industry

Sector

S&P 500

Gross Margin (TTM)

38.24

3.44

5.16

30.27

Gross Margin - 5 Yr. Avg.

37.86

21.07

24.04

27.23

EBITD Margin (TTM)

13.30

--

--

--

EBITD - 5 Yr. Avg

14.50

3.92

10.08

14.93

Operating Margin (TTM)

9.67

0.64

-0.34

--

Operating Margin - 5 Yr. Avg.

11.12

2.23

5.30

17.17

Pre-Tax Margin (TTM)

8.07

0.53

-0.64

12.91

Pre-Tax Margin - 5 Yr. Avg.

10.57

2.38

5.20

16.81

Net Profit Margin (TTM)

5.11

0.33

-0.53

10.40

Net Profit Margin - 5 Yr. Avg.

6.53

1.35

3.36

12.30

Effective Tax Rate (TTM)

36.64

3.78

0.84

11.71

Effecitve Tax Rate - 5 Yr. Avg.

38.19

33.83

32.37

25.97

Analysis Summary

The Ford Equity Research rating system is the product of more than thirty years of analysis of the factors that influence common stock performance. The foundation of the ratings is built on three basic characteristics: positive earnings changes, relative valuation compared to other companies, and price momentum. While identifying companies with these factors individually results in above average returns, the effect of combining them usually produces superior performance.

Overall Recommendation: Buy

Earnings Momentum: Acceleration

Analysts Forecasts: Negative

Valuation: Undervalued

Price Momentum: Very Positive

Adjusted Beta: 1.4

MANAGEMENT EFFECTIVENESS

 

Company

Industry

Sector

S&P 500

Return on Assets (TTM)

7.21

0.80

-0.30

5.06

Return on Assets - 5 Yr. Avg.

10.48

2.24

3.28

5.41

Return on Investment (TTM)

10.23

1.21

-0.57

6.63

Return on Investment - 5 Yr. Avg.

14.96

3.57

5.87

6.96

Return on Equity (TTM)

31.70

1.91

-1.01

14.66

Return on Equity - 5 Yr. Avg.

33.71

5.56

8.45

9.91

Analyst Forecast

Recent analyst earnings forecasts for Co. have increased which indicates a rise in expected earnings growth. Relative to changes in earnings forecasts forother companies, Co. compares favorably. However, the company has reported earnings ...