JC Penney Co Inc

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JCP : NYSE : Services
$5.57 | %
Today's Range: 5.45 - 5.6
Avg. Daily Volume: 2.08889E7
03/24/17 - 4:01 PM ET

Financial Analysis

PENNEY (J C) CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. PENNEY (J C) CO has very weak liquidity. Currently, the Quick Ratio is 0.37 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 3.43% 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 FY16 Q4 FY15
Net Sales ($mil)3961.03996.0
EBITDA ($mil)373.0367.0
EBIT ($mil)220.0210.0
Net Income ($mil)192.0-131.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)887.0900.0
Total Assets ($mil)9314.09442.0
Total Debt ($mil)4836.04805.0
Equity ($mil)1354.01309.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin33.1234.11
EBITDA Margin9.419.18
Operating Margin5.555.26
Sales Turnover1.351.34
Return on Assets0.01-5.43
Return on Equity0.07-39.19
Debt Q4 FY16 Q4 FY15
Current Ratio1.691.67
Interest Expense88.0102.0
Interest Coverage2.52.06

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)309.3306.1
Div / share0.00.0
Book value / share4.384.28
Institutional Own % n/a n/a
Avg Daily Volume2.1145168E71.5447223E7


HOLD. 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 1.41 indicates a significant discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 3.30. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 16.06   JCP 5.70 Peers 8.09

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 10.10 Peers 14.49   JCP NA Peers 1.55

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 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 1.41 Peers 3.30   JCP 99.41 Peers 33.26

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
JCP 0.15 Peers 0.62   JCP -0.62 Peers 7.77

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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