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JC Penney Co Inc
JCP : NYSE : Services
$6.50 | %
Today's Range: 6.50 - 6.77
Avg. Daily Volume: 18,693,800
12/24/14 - 1:01 PM ET

Financial Analysis


PENNEY (J C) CO's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has decreased by 8.19% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)2764.02779.0
EBITDA ($mil)24.0-221.0
EBIT ($mil)-132.0-382.0
Net Income ($mil)-188.0-489.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)684.01227.0
Total Assets ($mil)11165.011875.0
Total Debt ($mil)5427.05612.0
Equity ($mil)2430.02647.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin36.6529.47
EBITDA Margin0.86-7.95
Operating Margin-4.78-13.75
Sales Turnover1.091.01
Return on Assets-6.06-16.63
Return on Equity-27.86-74.61
Debt Q3 FY14 Q3 FY13
Current Ratio1.771.58
Debt/Capital0.690.68
Interest Expense103.099.0
Interest Coverage-1.28-3.86


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)304.8304.6
Div / share0.00.0
EPS-0.62-1.94
Book value / share7.978.69
Institutional Own % n/a n/a
Avg Daily Volume1.8913092E71.8071314E7

Valuation


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. For additional comparison, its price-to-book ratio of 0.85 indicates a significant discount versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 4.77. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JCP NM Peers 25.62   JCP NM Peers 14.00

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JCP NM Peers 20.61   JCP NA Peers 4.74

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JCP 0.85 Peers 4.77   JCP 74.46 Peers -3.20

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JCP 0.17 Peers 0.87   JCP 1.54 Peers 9.07

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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