Nordstrom Story

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JWN -- USA Stock  

USD 11.92  0.20  1.65%

Nordstrom is scheduled to announce its earnings today. The next earnings report is expected on the 19th of November 2020. Although many aggressive traders are getting into consumer cyclical space, Nordstrom may or may not be your first choice. What exactly are Nordstrom shareholders getting in September?
Published over a month ago
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Will Nordstrom (NYSE:JWN) debt increase in September 2020?
Nordstrom has 6.14 B in debt. The entity has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company secures a Beta (Market Risk) of -0.7007, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Nordstrom's beta means in this case. As returns on the market increase, returns on owning Nordstrom are expected to decrease at a much lower rate. During the bear market, Nordstrom is likely to outperform the market. Even though it is essential to pay attention to Nordstrom price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Nordstrom exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Nordstrom has an expected return of -0.22%. Please be advised to verify Nordstrom value at risk, as well as the relationship between the skewness and day median price to decide if Nordstrom stock performance from the past will be repeated at some point in the near future.
Nordstrom financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Nordstrom, including all of Nordstrom's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Nordstrom assets, the company is considered highly leveraged. Understanding the composition and structure of overall Nordstrom debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Nordstrom Total Debt

Nordstrom liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Nordstrom has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Nordstrom balance sheet include debt obligations and money owed to different Nordstrom vendors, workers, and loan providers. Below is the chart of Nordstrom main long-term debt accounts currently reported on its balance sheet.
You can use Nordstrom financial leverage analysis tool to get a better grip on understanding its financial position

How important is Nordstrom's Liquidity

Nordstrom financial leverage refers to using borrowed capital as a funding source to finance Nordstrom ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nordstrom financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Nordstrom's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Nordstrom, but it might be worth checking our own buy vs. sell analysis

Payment of tradable shares by Michael Maher of Nordstrom subject to Rule 16b-3

Legal trades by Nordstrom insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Nordstrom insider trading alert for payment of common stock by Michael Maher, Chief Accounting Officer, on 21st of September 2020. This event was filed by Nordstrom Inc with SEC on 2020-09-21. Statement of changes in beneficial ownership - SEC Form 4. Michael Maher currently serves as senior vice president, chief accounting officer of Nordstrom [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

The firm reported the last year's revenue of 14.2 B. Reported Net Loss for the year was (62 M) with profit before taxes, overhead, and interest of 5.59 B.

Liabilities Breakdown

3.3 B
Current Liabilities
4.9 B
Long-Term Liabilities
Total Liabilities8.19 Billion
Current Liabilities3.33 Billion
Long-Term Liabilities4.86 Billion

Our perspective of the latest Nordstrom rise

Jensen alpha is down to 0.22. It may entail a possible volatility slide. Nordstrom exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Nordstrom individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Nordstrom future systematic risk.

Our Final Takeaway

Whereas many other companies under the department stores industry are still a bit expensive, Nordstrom may offer a potential longer-term growth to institutional investors. To sum up, as of the 25th of August 2020, we believe Nordstrom is currently undervalued. It moves slightly opposite to the market and projects below average probability of distress in the next two years. However, our current 30 days buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Nordstrom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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