JC Penney Co Inc

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JCP : NYSE : Services
$5.075 -0.005 | -0.098%
Today's Range: 5.03 - 5.13
Avg. Daily Volume: 1.85567E7
07/24/17 - 2:50 PM ET

Financial Analysis

PENNEY (J C) CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. PENNEY (J C) CO has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.60% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2706.02811.0
EBITDA ($mil)142.0144.0
EBIT ($mil)-3.0-10.0
Net Income ($mil)-180.0-68.0

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)363.0415.0
Total Assets ($mil)8587.09126.0
Total Debt ($mil)4602.04733.0
Equity ($mil)1205.01250.0

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin36.3336.21
EBITDA Margin5.245.12
Operating Margin-0.11-0.36
Sales Turnover1.451.38
Return on Assets-1.29-4.72
Return on Equity-9.21-34.48
Debt Q1 FY17 Q1 FY16
Current Ratio1.581.55
Interest Expense87.095.0
Interest Coverage-0.03-0.11

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)309.8307.3
Div / share0.00.0
Book value / share3.894.07
Institutional Own % n/a n/a
Avg Daily Volume1.8509572E71.8732628E7


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. For additional comparison, its price-to-book ratio of 1.29 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.47. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
JCP NM Peers 15.67   JCP 4.00 Peers 7.65

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
JCP 10.00 Peers 14.17   JCP NA Peers 3.72

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

JCP is trading at a significant discount to its peers.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JCP 1.29 Peers 3.47   JCP 73.76 Peers 9.78

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JCP 0.12 Peers 0.63   JCP -1.09 Peers 2.26

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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