J. C. Penney Co. Inc.

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JCP : NYSE : Retail Trade
$2.91 | %
Today's Range: 2.9 - 3.04
Avg. Daily Volume: 1.68555E7
03/23/18 - 4:01 PM ET

Financial Analysis

PENNEY (J C) CO's gross profit margin for the fourth quarter of its fiscal year 2017 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 0.20 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.84% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)4031.03961.0
EBITDA ($mil)394.0373.0
EBIT ($mil)244.0220.0
Net Income ($mil)254.0192.0

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)458.0887.0
Total Assets ($mil)8413.09314.0
Total Debt ($mil)4232.04836.0
Equity ($mil)1379.01354.0

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin33.6133.12
EBITDA Margin9.779.41
Operating Margin6.055.55
Sales Turnover1.491.35
Return on Assets-1.370.01
Return on Equity-8.410.07
Debt Q4 FY17 Q4 FY16
Current Ratio1.461.69
Interest Expense81.088.0
Interest Coverage3.012.5

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)312.0308.3
Div / share0.00.0
Book value / share4.424.39
Institutional Own % n/a n/a
Avg Daily Volume1.7655108E71.7162716E7


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 0.69 indicates a significant discount versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 3.51. 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 14.58   JCP 2.08 Peers 10.19

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 14.43 Peers 15.05   JCP NA Peers 3.14

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

JCP is trading at a significant premium 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 0.69 Peers 3.51   JCP -3700.00 Peers 19.43

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.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, JCP is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JCP 0.08 Peers 0.80   JCP -0.33 Peers 4.58

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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