Macy's: An Undervalued Hidden Asset Play

Apr. 28, 2025 4:36 AM ETMacy's, Inc. (M) StockM20 Comments
(18min)

Summary

  • I give Macy's stock a buy rating.
  • The company has strong cash flow and high-quality earnings.
  • Macy's shares have an intrinsic value of $18.15, meaning the stock is currently undervalued by $7.02, almost 39% below its intrinsic value.
  • The company has a price-to-book ratio of 0.68—much lower than that of its peers and the S&P 500—indicating an undervaluation of the company's assets.
  • The company has a hidden real estate value of $20.74 per share, meaning that investors who purchase Macy's shares are getting in on the company's retail operations for free.

Macy"s mall location. Macys plans to continue closing stores IV

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Background

My first article on Seeking Alpha was on Macy's, Inc. (NYSE:M) over six months ago. I gave the company a hold rating, and much of that article was spent discussing Macy's "Bold New Chapter" strategy in detail. However, after publishing the

This article was written by

I help investors find undervalued stocks through deep-dive fundamental analysis rooted in data, logic, and long-term thinking. My research focuses on identifying companies with strong upside potential by combining DCF modeling, P/E and other relative valuations, and macroeconomic insight. I aim to cut through hype and headlines to give readers clear, actionable takeaways they can use to invest with confidence. You’ll find my work especially useful if you’re a long-term investor who values clear reasoning, detailed financials, and real-world context.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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