Macys Book Value Per Share vs. Operating Margin

M -- USA Stock  

USD 36.27  0.70  1.97%

The Drivers Module shows relationships between Macys's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Macys over time as well as its relative position and ranking within its peers. Please see also Stocks Correlation

Macys Operating Margin vs. Book Value Per Share Fundamental Analysis

Macys is rated below average in book value per share category among related companies. It is rated below average in operating margin category among related companies reporting about  0.55  of Operating Margin per Book Value Per Share. The ratio of Book Value Per Share to Operating Margin for Macys is roughly  1.83 
Book Value per Share (B/S) is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing effects of liabilities. In other words a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of liquidation.
Macys 
Book Value per Share 
 = 
Common Equity 
Average Shares 
=
19.27 times
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as good will, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Macys 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
10.52 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Macys Operating Margin Comparison

  Operating Margin 
      Macys Comparables 
Macys is rated below average in operating margin category among related companies.
  Book Value Per Share 
      Macys Comparables 
Macys is rated below average in book value per share category among related companies.
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