PENNEY (J C) CO's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. PENNEY (J C) CO has very weak liquidity. Currently, the Quick Ratio is 0.41 which clearly shows a lack of ability to cover short-term cash needs.
At the same time, stockholders' equity ("net worth") has significantly decreased by 36.15% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||2875.0||2799.0|
|Net Income ($mil)||-138.0||-172.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||973.0||1036.0|
|Total Assets ($mil)||10232.0||11112.0|
|Total Debt ($mil)||5298.0||5425.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||37.04||36.01|
|Return on Assets||-5.39||-8.8|
|Return on Equity||-33.25||-37.61|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||305.5||304.8|
|Div / share||0.0||0.0|
|Book value / share||5.43||8.53|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.090685E7||1.4466058E7|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 4.53. The price-to-sales ratio is well below both the S&P 500 average and 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 20.65||JCP 13.20||Peers 12.41|
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.
Average. 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 valuation on par to its peers.
|JCP NM||Peers 18.03||JCP NA||Peers 2.55|
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 1.51||Peers 4.53||JCP 48.88||Peers 21.59|
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 0.20||Peers 0.92||JCP 1.87||Peers 4.78|
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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