Presentation on theme: "Nordstrom Inc. (JWN) Michael Dietrich 11/2/11. Business Summary Retailer that offers apparel, shoes, cosmetics, and accessories for men and women. 222."— Presentation transcript:
Business Summary Retailer that offers apparel, shoes, cosmetics, and accessories for men and women. 222 stores. 117 full line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure and bond store, and 1 clearance store. 90% revenue comes from its retail stores, the other from website, catalog, and private label credit card.
Stock Checklist Criteria Requirements:CompanyIndustryGood / Bad Solvency and Financial Leverage Ratios:3.69 Current Ratio > 11.852 good Debt Ratio < Industry Average139.8929.19 bad Efficiency Ratios: Total Asset Turnover > Industry Average1.36 good Inventory Turnover > Industry Average5.625.05 good Profitability Ratios: Net Profit Margin > Industry Average6.387.21 bad Return on Asset (ROA) > Industry Average9.8712.01 bad Return on Equity (ROE) > Industry Average35.0619.88 good Growth Ratio (5 years): Historical EPS Growth > Industry Average6.7711.36 bad Historical Revenue Growth > Industry Average4.6611.72 bad Projected EPS Growth >10%* and > industry Average6.7711.36 bad Other Informative Data: P/E16.6422.17 P/B5.374.29 PEG1.2N/A Fair Value Estimate Current Price (10/17/2011) Purchase Price Dividend$0.76 Dividend Yield >2%**1.83%2.16
SWOT (Strengths) They have managed inventory levels during the economic downturn Added an IT department Online sales continue to grow
SWOT(Weakness) Credit card business adds an element of risk for the company Sells mainly discretionary goods, exposed to economic swings
SWOT(Opportunities) 122 stores domestically so still room for expansion Mobile check out devices
SWOT(Threats) High competition Saks offers affordable luxury items Macy’s upgrading its merchandise assortment Consumer Spending (cyclical)