PENNEY (J C) CO's gross profit margin for the second quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.
During the same period, stockholders' equity ("net worth") has increased by 12.06% from the same quarter last year.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||2799.0||2663.0|
|Net Income ($mil)||-172.0||-586.0|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||1036.0||1535.0|
|Total Assets ($mil)||11112.0||11654.0|
|Total Debt ($mil)||5425.0||5821.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||36.01||29.55|
|Return on Assets||-8.8||-13.8|
|Return on Equity||-37.61||-69.35|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||304.8||220.4|
|Div / share||0.0||0.0|
|Book value / share||8.53||10.53|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.750724E7||1.8928394E7|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 1.30 indicates a discount versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 3.86. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, PENNEY (J C) CO proves to trade at a discount to investment alternatives within the industry.
|JCP NM||Peers 23.23||JCP 48.23||Peers 13.46|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
JCP's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
JCP is trading at a significant premium to its peers.
|JCP NM||Peers 18.18||JCP NA||Peers 3.60|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
JCP's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|JCP 1.30||Peers 3.86||JCP 51.58||Peers -10.38|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
JCP is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
JCP is expected to have an earnings growth rate that significantly exceeds its peers.
|JCP 0.28||Peers 0.77||JCP 0.42||Peers 1.51|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
JCP is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
JCP significantly trails its peers on the basis of sales growth
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