JC Penney Co Inc

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JCP : NYSE : Services
$3.91 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1.68204E7
09/21/17 - 4:02 PM ET

Financial Analysis


PENNEY (J C) CO's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PENNEY (J C) CO has very weak liquidity. Currently, the Quick Ratio is 0.14 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 3.50% 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 FY17 Q2 FY16
Net Sales ($mil)2962.02918.0
EBITDA ($mil)201.0229.0
EBIT ($mil)57.076.0
Net Income ($mil)-62.0-56.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)314.0429.0
Total Assets ($mil)8326.09166.0
Total Debt ($mil)4293.04725.0
Equity ($mil)1155.01197.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.0837.15
EBITDA Margin6.787.84
Operating Margin1.922.6
Sales Turnover1.51.38
Return on Assets-1.4-4.03
Return on Equity-10.12-30.91
Debt Q2 FY17 Q2 FY16
Current Ratio1.451.51
Debt/Capital0.790.8
Interest Expense79.093.0
Interest Coverage0.720.82


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)310.3307.6
Div / share0.00.0
EPS-0.2-0.18
Book value / share3.723.89
Institutional Own % n/a n/a
Avg Daily Volume1.7786992E71.952444E7

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 1.14 indicates a significant discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 3.49. 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 16.35   JCP 2.18 Peers 9.38

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
JCP 10.58 Peers 15.22   JCP NA Peers 3.91

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
JCP 1.14 Peers 3.49   JCP 67.77 Peers 3.26

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 0.11 Peers 0.69   JCP -1.08 Peers 1.60

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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