Macy's
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | M | Checked against | |
|---|---|---|---|
| Owner earnings | $1.16bn | positive | ✓ |
| Return on equity | 13.2% | median 11.7% | ✓ |
| Debt to equity | 0.50x | median 0.79x | ✓ |
| Operating margin | 4.7% | median 15.0% | ✗ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 3/4
| Measure | M | Checked against | |
|---|---|---|---|
| Return on capital employed | 14.1% | median 10.1% | ✓ |
| Cash conversion | 2.23x | median 1.78x | ✓ |
| Operating margin | 4.7% | median 15.0% | ✗ |
| Debt to equity | 0.50x | median 0.79x | ✓ |
Passes 3 of 4. To be clear: Terry Smith has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 2/3
| Measure | M | Checked against | |
|---|---|---|---|
| Return on capital employed | 14.1% | median 10.1% | ✓ |
| Return on equity | 13.2% | median 11.7% | ✓ |
| Operating margin | 4.7% | median 15.0% | ✗ |
Passes 2 of 3. To be clear: Charlie Munger has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 3/4
| Measure | M | Checked against | |
|---|---|---|---|
| Return on equity | 13.2% | median 11.7% | ✓ |
| Debt to equity | 0.50x | median 0.79x | ✓ |
| Cash conversion | 2.23x | median 1.78x | ✓ |
| Return on equity, sustained | 7 of 10 | 8 of 10 above median | ✗ |
Passes 3 of 4. To be clear: Chuck Akre has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 2/4
| Measure | M | Checked against | |
|---|---|---|---|
| Operating margin | 4.7% | median 15.0% | ✗ |
| Net margin | 2.9% | median 10.2% | ✗ |
| Return on capital employed | 14.1% | median 10.1% | ✓ |
| Operating margin, held or improving | 4.7% | 10-yr median 4.7% | ✓ |
Passes 2 of 4. To be clear: Philip Fisher has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | M | Checked against | |
|---|---|---|---|
| Current ratio | 1.49x | median 1.25x | ✓ |
| Debt to equity | 0.50x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/3
| Measure | M | Checked against | |
|---|---|---|---|
| Current ratio | 1.49x | 2.00x published | ✗ |
| Long-term debt to working capital | 1.12x | 1.00x published | ✗ |
| Positive earnings, ten years running | 5 yrs | 10 published | ✗ |
Passes 0 of 3. To be clear: Benjamin Graham has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | M | Checked against | |
|---|---|---|---|
| Return on capital employed | 14.1% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | M | Checked against | |
|---|---|---|---|
| Debt to equity | 0.50x | median 0.79x | ✓ |
| Net margin | 2.9% | median 10.2% | ✗ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about Macy's. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 31.5% | whyThe figure most screeners publish. |
| Operating cash flow | 13.8% | whyBefore capital spending. |
| Free cash flow | 18.6% | whyAfter maintaining the business. |
Spread between highest and lowest: 17.7 percentage points. Same filings, different denominators.
Coverage rating 67 / 100 — Adequate. ? Peer standing 40/50Direction 25/30Stability 2/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2026-01-31 | 18.6% |
| 2025-02-01 | 25.3% |
| 2024-02-03 | 26.9% |
| 2023-01-28 | 23.8% |
| 2022-01-29 | 3.8% |
| 2021-01-30 | 37.6% |
80% of the 44 consumer discretionary here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.730 ÷ diluted EPS $2.32
- Operating cash flow — dividends paid $197m ÷ operating cash flow $1,430m
- Free cash flow — dividends paid $197m ÷ (operating cash flow $1,430m − capex $373m)
Where the figures came from
- 10-K filed 2026-03-27 · accession 0001628280-26-021721
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Macy's files. The monthly letter carries what filed, what moved, and one finding computed across every company here.