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Nordstrom

NYSE:JWN
Snowflake Description

Good value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JWN
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Nordstrom, Inc., a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children. The last earnings update was 15 days ago. More info.


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  • Nordstrom has significant price volatility in the past 3 months.
JWN Share Price and Events
7 Day Returns
-18.5%
NYSE:JWN
-0.4%
US Multiline Retail
-4.1%
US Market
1 Year Returns
-71.4%
NYSE:JWN
-13.3%
US Multiline Retail
-14.9%
US Market
JWN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nordstrom (JWN) -18.5% -55.6% -67.3% -71.4% -70.7% -83.7%
US Multiline Retail -0.4% -14.5% -24.4% -13.3% 24.5% -17.3%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • JWN underperformed the Multiline Retail industry which returned -13.3% over the past year.
  • JWN underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
JWN
Industry
5yr Volatility vs Market
Related Companies

JWN Value

 Is Nordstrom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nordstrom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nordstrom.

NYSE:JWN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:JWN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.42
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.422 (1 + (1- 21%) (235.01%))
1.137
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.137 * 5.44%)
7.93%

Discounted Cash Flow Calculation for NYSE:JWN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nordstrom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:JWN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.93%)
2020 384.50 Analyst x4 356.26
2021 333.00 Analyst x4 285.88
2022 615.33 Analyst x3 489.47
2023 634.17 Est @ 3.06% 467.41
2024 651.07 Est @ 2.66% 444.62
2025 666.61 Est @ 2.39% 421.81
2026 681.23 Est @ 2.19% 399.40
2027 695.25 Est @ 2.06% 377.68
2028 708.89 Est @ 1.96% 356.81
2029 722.32 Est @ 1.9% 336.87
Present value of next 10 years cash flows $3,936.00
NYSE:JWN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $722.32 × (1 + 1.74%) ÷ (7.93% – 1.74%)
$11,879.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $11,879.65 ÷ (1 + 7.93%)10
$5,540.35
NYSE:JWN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,936.00 + $5,540.35
$9,476.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,476.35 / 156.35
$60.61
NYSE:JWN Discount to Share Price
Calculation Result
Value per share (USD) From above. $60.61
Current discount Discount to share price of $13.05
= -1 x ($13.05 - $60.61) / $60.61
78.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nordstrom is available for.
Intrinsic value
>50%
Share price is $13.05 vs Future cash flow value of $60.61
Current Discount Checks
For Nordstrom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nordstrom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nordstrom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nordstrom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nordstrom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:JWN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-02-01) in USD $3.20
NYSE:JWN Share Price ** NYSE (2020-04-03) in USD $13.05
United States of America Multiline Retail Industry PE Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 5.86x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nordstrom.

NYSE:JWN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:JWN Share Price ÷ EPS (both in USD)

= 13.05 ÷ 3.20

4.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nordstrom is good value based on earnings compared to the US Multiline Retail industry average.
  • Nordstrom is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Nordstrom's expected growth come at a high price?
Raw Data
NYSE:JWN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-25.1%per year
United States of America Multiline Retail Industry PEG Ratio Median Figure of 8 Publicly-Listed Multiline Retail Companies 0.86x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

NYSE:JWN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.08x ÷ -25.1%

-0.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nordstrom earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nordstrom's assets?
Raw Data
NYSE:JWN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-02-01) in USD $6.29
NYSE:JWN Share Price * NYSE (2020-04-03) in USD $13.05
United States of America Multiline Retail Industry PB Ratio Median Figure of 12 Publicly-Listed Multiline Retail Companies 0.51x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NYSE:JWN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:JWN Share Price ÷ Book Value per Share (both in USD)

= 13.05 ÷ 6.29

2.07x

* Primary Listing of Nordstrom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nordstrom is overvalued based on assets compared to the US Multiline Retail industry average.
X
Value checks
We assess Nordstrom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Nordstrom has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JWN Future Performance

 How is Nordstrom expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-25.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nordstrom expected to grow at an attractive rate?
  • Nordstrom's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Nordstrom's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Nordstrom's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:JWN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:JWN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts -25.1%
NYSE:JWN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 0.5%
United States of America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 5.9%
United States of America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:JWN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:JWN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 15,908 3
2022-01-31 15,449 1,155 412 13
2021-01-31 14,272 706 68 14
2020-04-04
NYSE:JWN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2020-02-01 15,524 1,236 496
2019-11-02 15,470 1,223 552
2019-08-03 15,546 1,394 492
2019-05-04 15,742 1,293 514
2019-02-02 15,860 1,296 564
2018-11-03 16,079 1,445 467
2018-08-04 15,959 1,420 513
2018-05-05 15,685 1,283 461
2018-02-03 15,478 1,400 437
2017-10-28 15,092 1,377 487
2017-07-29 15,005 1,376 364
2017-04-29 14,862 1,571 371

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nordstrom's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Nordstrom's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:JWN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Nordstrom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:JWN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31
2022-01-31 2.49 3.53 1.93 6.00
2021-01-31 0.52 3.43 -2.84 7.00
2020-04-04
NYSE:JWN Past Financials Data
Date (Data in USD Millions) EPS *
2020-02-01 3.20
2019-11-02 3.50
2019-08-03 3.06
2019-05-04 3.13
2019-02-02 3.37
2018-11-03 2.78
2018-08-04 3.07
2018-05-05 2.76
2018-02-03 2.62
2017-10-28 2.89
2017-07-29 2.14
2017-04-29 2.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nordstrom is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Nordstrom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nordstrom has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JWN Past Performance

  How has Nordstrom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nordstrom's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nordstrom's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Nordstrom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nordstrom's 1-year earnings growth is negative, it can't be compared to the US Multiline Retail industry average.
Earnings and Revenue History
Nordstrom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nordstrom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:JWN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-02-01 15,524.00 496.00 4,776.00
2019-11-02 15,470.00 552.00 4,759.00
2019-08-03 15,546.00 492.00 4,762.00
2019-05-04 15,742.00 514.00 4,814.00
2019-02-02 15,860.00 564.00 4,796.00
2018-11-03 16,079.00 467.00 4,872.00
2018-08-04 15,959.00 513.00 4,842.00
2018-05-05 15,685.00 461.00 4,734.00
2018-02-03 15,478.00 437.00 4,662.00
2017-10-28 15,092.00 487.00 4,415.00
2017-07-29 15,005.00 364.00 4,298.00
2017-04-29 14,862.00 371.00 4,204.00
2017-01-28 14,757.00 354.00 4,315.00
2016-10-29 14,634.00 333.00 4,100.00
2016-07-30 14,421.00 424.00 4,061.00
2016-04-30 14,471.00 518.00 4,039.00
2016-01-30 14,437.00 600.00 3,957.00
2015-10-31 14,287.00 675.00 3,912.00
2015-08-01 14,099.00 736.00 3,836.00
2015-05-02 13,790.00 708.00 3,717.00
2015-01-31 13,506.00 720.00 3,588.00
2014-11-01 13,174.00 733.00 3,551.00
2014-08-02 12,918.00 728.00 3,469.00
2014-05-03 12,722.00 729.00 3,386.00
2014-02-01 12,540.00 734.00 3,272.00
2013-11-02 12,527.00 750.00 3,330.00
2013-08-03 12,448.00 759.00 3,295.00
2013-05-04 12,258.00 731.00 3,266.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Nordstrom made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Nordstrom used its assets less efficiently than the US Multiline Retail industry average last year based on Return on Assets.
  • Nordstrom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nordstrom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nordstrom has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JWN Health

 How is Nordstrom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nordstrom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nordstrom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Nordstrom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Nordstrom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nordstrom Company Filings, last reported 2 months ago.

NYSE:JWN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2020-02-01 979.00 2,676.00 853.00
2019-11-02 851.00 2,679.00 487.00
2019-08-03 759.00 2,678.00 956.00
2019-05-04 651.00 2,676.00 448.00
2019-02-02 873.00 2,685.00 957.00
2018-11-03 1,203.00 2,686.00 1,127.00
2018-08-04 1,140.00 2,734.00 1,343.00
2018-05-05 1,070.00 2,736.00 966.00
2018-02-03 977.00 2,737.00 1,181.00
2017-10-28 854.00 2,738.00 672.00
2017-07-29 785.00 2,740.00 919.00
2017-04-29 677.00 2,742.00 653.00
2017-01-28 870.00 2,774.00 1,007.00
2016-10-29 860.00 2,778.00 531.00
2016-07-30 937.00 2,782.00 892.00
2016-04-30 875.00 2,786.00 470.00
2016-01-30 871.00 2,805.00 595.00
2015-10-31 1,408.00 2,809.00 821.00
2015-08-01 2,491.00 3,141.00 423.00
2015-05-02 2,555.00 3,146.00 769.00
2015-01-31 2,440.00 3,131.00 827.00
2014-11-01 2,274.00 3,127.00 433.00
2014-08-02 2,101.00 3,118.00 772.00
2014-05-03 2,036.00 3,117.00 1,015.00
2014-02-01 2,080.00 3,113.00 1,194.00
2013-11-02 1,988.00 3,118.00 947.00
2013-08-03 2,031.00 3,122.00 1,128.00
2013-05-04 1,888.00 3,126.00 1,190.00
  • Nordstrom's level of debt (273.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (128.2% vs 273.3% today).
  • Debt is well covered by operating cash flow (46.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8x coverage).
X
Financial health checks
We assess Nordstrom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nordstrom has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JWN Dividends

 What is Nordstrom's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Nordstrom dividends. Estimated to be 7.56% next year.
If you bought $2,000 of Nordstrom shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Nordstrom's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Nordstrom's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:JWN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:JWN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31 1.12 4.00
2022-01-31 1.22 7.00
2021-01-31 0.74 9.00
2020-04-04
NYSE:JWN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-23 0.000 0.000
2020-02-27 1.480 6.224
2019-11-21 1.480 3.774
2019-08-20 1.480 4.432
2019-05-23 1.480 4.809
2019-02-27 1.480 3.508
2018-11-14 1.480 3.098
2018-08-22 1.480 2.368
2018-08-16 1.480 2.518
2018-05-08 1.480 2.893
2018-02-21 1.480 3.008
2017-11-15 1.480 3.138
2017-08-16 1.480 3.415
2017-05-16 1.480 3.251
2017-02-17 1.480 3.254
2016-11-16 1.480 3.015
2016-08-17 1.480 2.826
2016-05-19 1.480 3.665
2016-02-24 1.480 2.877
2015-11-18 1.480 2.897
2015-08-19 1.480 2.148
2015-05-05 1.480 1.954
2015-02-13 1.480 1.866
2014-11-19 1.320 1.713
2014-08-20 1.320 1.878
2014-05-07 1.320 1.952
2014-02-26 1.320 2.135
2013-11-20 1.200 1.999
2013-08-21 1.200 2.063
2013-05-14 1.200 1.997
2013-02-27 1.200 2.165
2012-11-14 1.080 1.993
2012-08-23 1.080 1.914
2012-05-10 1.080 2.102
2012-02-17 1.080 1.976
2011-11-18 0.920 1.890
2011-08-25 0.920 1.923
2011-05-12 0.920 2.024
2011-02-23 0.920 2.031
2010-11-18 0.800 1.870
2010-08-20 0.800 2.197
2010-05-18 0.800 2.283
2010-02-19 0.640 1.573
2009-11-18 0.640 1.799
2009-08-18 0.640 2.038
2009-05-19 0.640 2.891

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Nordstrom has not reported any payouts.
  • Unable to verify if Nordstrom's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Nordstrom's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Nordstrom has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Nordstrom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nordstrom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nordstrom has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JWN Management

 What is the CEO of Nordstrom's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Erik Nordstrom
COMPENSATION $4,451,746
AGE 55
TENURE AS CEO 1.3 years
CEO Bio

Mr. Erik B. Nordstrom serves as Chief Executive Officer of Nordstrom Inc. since April 2015 and its Principal Executive Officer since January 10, 2019. He was Co-President of Mr. Nordstrom serves as a Member of Executive Team of Nordstrom Inc., and has been its Officer since 1995. Mr. Nordstrom served as the President of Nordstrom Direct at Nordstrom Inc. since May 2014 and its Executive Vice President since February 2006 to May 2015. He served as the President of Stores at Nordstrom Inc. from February 2006 to May 2014. Prior to that, he served as Northwest General Manager and Executive Vice President of Nordstrom from February 2000 to August 2000 and also served as it's Co-President from June 1995 to February 2000, where he was responsible for Nordstrom Product Group. He served as an Executive Vice President Full-line Stores of Nordstrom Inc. from August 2000 to February 2006. He served as Store and Regional Manager of Nordstrom, Minnesota since 1992. Mr. Nordstrom joined Nordstrom Inc. in July 1979. He has been a Director of Nordstrom Inc. since May 23, 2006.

CEO Compensation
  • Erik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Erik's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nordstrom management team in years:

2
Average Tenure
53
Average Age
  • The tenure for the Nordstrom management team is about average.
Management Team

Erik Nordstrom

TITLE
CEO, Principal Executive Officer & Director
COMPENSATION
$4M
AGE
55
TENURE
1.3 yrs

Pete Nordstrom

TITLE
President
COMPENSATION
$4M
AGE
57

Anne Bramman

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
51
TENURE
2.8 yrs

Ken Worzel

TITLE
Chief Operating Officer
COMPENSATION
$6M
AGE
54
TENURE
0.6 yrs

Christine Deputy

TITLE
Chief Human Resources Officer
COMPENSATION
$4M
AGE
53
TENURE
4.8 yrs

Michael Maher

TITLE
Chief Accounting Officer
AGE
45
TENURE
0.3 yrs

Trina Schurman

TITLE
Director of Investor Relations

Ann Steines

TITLE
Executive VP
AGE
53
TENURE
0.8 yrs

Scott Meden

TITLE
Chief Marketing Officer
AGE
56
TENURE
3.7 yrs

Teri Bariquit

TITLE
Chief Merchandising Officer
AGE
53
TENURE
7.7 yrs
Board of Directors Tenure

Average tenure and age of the Nordstrom board of directors in years:

5.3
Average Tenure
55
Average Age
  • The tenure for the Nordstrom board of directors is about average.
Board of Directors

Brad Smith

TITLE
Independent Chairman of the Board
COMPENSATION
$348K
AGE
55
TENURE
1.4 yrs

Erik Nordstrom

TITLE
CEO, Principal Executive Officer & Director
COMPENSATION
$4M
AGE
55
TENURE
14.3 yrs

Pete Nordstrom

TITLE
President
COMPENSATION
$4M
AGE
57
TENURE
14.3 yrs

Tanya Domier

TITLE
Independent Director
COMPENSATION
$263K
AGE
53
TENURE
5.3 yrs

Gordon Smith

TITLE
Independent Director
COMPENSATION
$274K
AGE
61
TENURE
5.3 yrs

Brad Tilden

TITLE
Independent Director
COMPENSATION
$269K
AGE
58
TENURE
4.3 yrs

Shellye Archambeau

TITLE
Independent Director
COMPENSATION
$255K
AGE
56
TENURE
5.3 yrs

Stacy Brown-Philpot

TITLE
Independent Director
COMPENSATION
$250K
AGE
43
TENURE
2.9 yrs

Brian Turner

TITLE
Independent Director
COMPENSATION
$302K
AGE
54
TENURE
10.3 yrs

Kirsten Green

TITLE
Independent Director
AGE
48
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Nordstrom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nordstrom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JWN News

Simply Wall St News

Why Nordstrom, Inc.'s (NYSE:JWN) High P/E Ratio Isn't Necessarily A Bad Thing

See our latest analysis for Nordstrom How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Nordstrom: P/E of 10.37 = $32.47 ÷ $3.13 (Based on the year to May 2019.) Is A High Price-to-Earnings Ratio Good? … How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates.

Simply Wall St -

Have Insiders Been Selling Nordstrom, Inc. (NYSE:JWN) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Nordstrom, Inc. … Insiders at Nordstrom Have Sold Stock Recently The last three months saw significant insider selling at Nordstrom. … Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.

Simply Wall St -

Is Nordstrom, Inc. (NYSE:JWN) A Great Dividend Stock?

(NYSE:JWN) a good dividend stock? … Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.

Simply Wall St -

Is Nordstrom, Inc. (NYSE:JWN) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.65 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

These Factors Make Nordstrom, Inc. (NYSE:JWN) An Interesting Investment

that has been able to sustain great financial health over the past … Below is a brief commentary on these key aspects … For those interested in digger a bit deeper into my commentary,

Simply Wall St -

Should You Be Tempted To Sell Nordstrom, Inc. (NYSE:JWN) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Nordstrom has a price to earnings ratio of 17.62, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Nordstrom Inc (NYSE:JWN) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Nordstrom has a return on equity of 39% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Buying Nordstrom Inc (NYSE:JWN) For Its Upcoming US$0.37 Dividend A Good Choice?

Nordstrom Inc (NYSE:JWN) will be distributing its dividend of US$0.37 per share on the 19 September 2018, and will start trading ex-dividend in 2 days time on the 31 August 2018. … If you are a dividend investor, you should always assess these five key metrics:? … Is its earnings sufficient to payout dividend at the current rate

Simply Wall St -

Nordstrom Inc (NYSE:JWN): Assessing Capital Returns

and want a simplistic look at the return on Nordstrom Inc (NYSE:JWN) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Nordstrom, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Want To Invest In Nordstrom Inc (NYSE:JWN)? Here's How It Performed Lately

Investors with a long-term horizong may find it valuable to assess Nordstrom Inc's (NYSE:JWN) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Below is my commentary, albiet very simple and high-level, on how Nordstrom is currently performing. … JWN's trailing twelve-month earnings (from 05 May 2018) of US$461.00m has

Simply Wall St -

JWN Company Info

Description

Nordstrom, Inc., a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children. It offers a range of brand name and private label merchandise through various channels, such as Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Jeffrey boutiques; clearance stores that operate under the Last Chance name; Trunk Club clubhouses and TrunkClub.com; and Nordstrom Locals. As of October 24, 2019, the company operated 382 stores in 40 states, including 117 full-line stores in the United States, Canada, and Puerto Rico; 249 Nordstrom Rack stores; 3 Jeffrey boutiques; 2 clearance stores; 6 Trunk Club clubhouses; and 5 Nordstrom Local service concepts, as well as online through Nordstrom.com, Nordstromrack.com, HauteLook, and TrunkClub.com. Nordstrom, Inc. was founded in 1901 and is headquartered in Seattle, Washington.

Details
Name: Nordstrom, Inc.
JWN
Exchange: NYSE
Founded: 1901
$2,040,317,479
156,346,167
Website: http://shop.nordstrom.com
Address: Nordstrom, Inc.
1617 Sixth Avenue,
Seattle,
Washington, 98101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE JWN Common Stock New York Stock Exchange US USD 14. Dec 1972
DB NRD Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
LSE 0K8J Common Stock London Stock Exchange GB USD 14. Dec 1972
BMV JWN * Common Stock Bolsa Mexicana de Valores MX MXN 14. Dec 1972
BOVESPA J1WN34 BDR EACH REPR 1 COM NPV Bolsa de Valores de Sao Paulo BR BRL 30. Dec 2019
Number of employees
Current staff
Staff numbers
75,000
Nordstrom employees.
Industry
Department Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 00:30
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/03/20
Last earnings reported: 2020/02/01
Last annual earnings reported: 2020/02/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.