J.C. Penney Financial Analysis 1
J.C. Penney Financial Analysis
Team A; Barker, Jenkins, McGuigan, Moore, & Schmidtman
Finance – 640
May 21, 2012
Professor Jeffrey D. Templeton
J.C. Penney Financial Analysis 2
TABLE OF CONTENTS
J. C. Penney: Introduction & Background ...................................................................................... 3
Financial Ratio Summaries ............................................................................................................. 6
Liquidity Ratios .............................................................................................................................. 6
Asset Management Ratios............................................................................................................... 6
Debt Management Ratios ................................................................................................................ 7
Profitability Ratios .......................................................................................................................... 8
Market Share ................................................................................................................................... 9
Capital Structure & WACC .......................................................................................................... 10
Cash Flow ..................................................................................................................................... 11
International Affairs ...................................................................................................................... 12
Pricing Strategy............................................................................................................................. 13
Risk ............................................................................................................................................... 14
Conclusion .................................................................................................................................... 15
Appendix ....................................................................................................................................... 16
References….…………………………………………………………………………………….22
J.C. Penney Financial Analysis 3
J. C. Penney: Introduction &Background
On April 14, 1902, a man named James Cash Penney formed a partnership with Thomas
Callahan and Guy Johnson, and they opened a retail store named The Golden Rule. During the
time that The Golden Rule was created, James Penney also participated in creating two more
retail stores. In 1907, the partnership with Callahan and Johnson ended, and J.C. Penney bought
full interest in the three locations, which was the point when J.C. Penney (JCP) began and the
company name was incorporated.
In an effort to make financing, buying, and transporting goods easier, the JCP company
headquarters moved to New York in 1914. With many stores located near railroads and banks,
the main focus of the company was selling work clothes designed by a private brand named Big
Mac. Over 50 years later, JCP operated 1,600 stores located throughout the 48 states (Wikipedia,
2012). James Penney anticipated company growth so he started a series of national advertising
in Life magazine and in 1959, issued credit cards for the first time.
In 1961 the first full-line, shopping center department was dedicated. The stores
expanded the lines of merchandise and services that they had provided in the past. They
included: sporting goods, appliances, restaurants, beauty salons, garden merchandise, portrait
studios, auto parts and auto centers. To showcase everything the stores were offering, catalogs
were being issued and distributed and in-store catalog desks were in operation in eight states.
After the death of Penney in 1971, a new logo was adopted and it took almost a decade
for it to be rolled out to the entire JCP chain. According to Wikipedia, JCP reached 2,053 stores
nationwide and within those stores 300 were full-line establishments (2012). When the 1974
recession hit, the company struggled by rapidly decreasing stock prices. The price of JCP stock
had been estimated to have dropped by two-thirds. Stores were sold in Italy and Supermarkets
Interstate leased departments were removed. The Treasury discount stores were closed in 1980
J.C. Penney Financial Analysis 4
because they were not profitable and the company shifted resources on the core retail stores. A
few years later the hardware and auto departments were phased out and the auto repair shops
were sold to Firestone.
The First National Bank of Harrington, Delaware was acquired in 1984, and renamed to
J.C. Penney National Bank which allowed JCP to issue its own Visa and Master Cards.
American Express was also accepted by the company. The credit cards became instrumental in
helping to increase revenue when the J.C. Penney Television Shopping Channel appeared on
cable systems in 1989. Shoppers were able to buy products with the credit cards that the
company issued, which allowed for the company to make money from the cards as well as the
merchandise.
JCP capitalized on the closing of Sears catalog business in 1993. Nationwide, they were
considered the largest catalog retailer. Several years later, the drug store business was expanded
by acquiring Fay’s Drug and Kerr Drug. The acquisitions momentum continued to climb when
the Eckerd chain was added. All three merged into Thrift Drug with was a subsidiary of JCP.
Several years later, further momentum continued when there was a third channel for shopping
launched and simultaneously the stores internet store was growing tremendously. On the
internet, it became one of the biggest apparel and home furnishings retail sites. By 1999, JCP
had grown to an up-scale chain from middle-scale chain.
From 2001 to 2004, 44 of the under-performing stores were closed and 14 new locations
were opened (Wikipedia, 2012). By this time, the JCP celebrated 100 years in the retail business.
With the evaluation of the business, it was decided that the Eckerd drug store division should be
sold. In 2005, for the first time ever, the e-commerce storefront exceeded over one-billion
dollars in revenue.
J.C. Penney Financial Analysis 5
Changes occurred again in 2007, when JCP launched the Ambrielle lingerie label. Over
time, it became the largest private brand launched in JCP history. In addition, cosmetics were
reintroduced to the company, with the Sephora “stores within a store” inside several of the
locations (Wikipedia, 2012). With the lingerie and Sephora introduction, the slogan of the store
changed from “It’s All Inside” to “Every Day Matters” (Wikipedia, 2012).
In Fall of 2007, a new public website was introduced, JCPenneyBrands.com. This site
demonstrates the branding strategy of the company’s exclusive and private brands, with
upcoming product line previews. In February of the following year, the “American Living”
brand was launched (Wikipedia, 2012). The brand was developed by Ralph Lauren and included
children’s, women’s and men’s shoes and apparel, intimate apparel, and home. On January 24,
2011, the decision was made for JCP to close 19 of its catalog outlet stores and exit the catalog
business.
In October and November of 2011, JCP began building the “dream team” (Forbes,
2012).A new President, Target’s chief marketing officer Michael Francis, teamed up with Ron
Johnson, who became the new CEO of the JCP team (Business week, 2012). Johnson worked as
a Target executive and for “more than a decade at Apple as its senior vice president of retail
operations, where he headed up Apple's Genius Bar and One-on-One Training. Johnson says
both companies had a market share of three percent when he joined them and goes as far as
saying that J.C. Penney resembles a stronger company today than when Apple first opened its
stores to the public” (Yahoo! Finance, 2012). Shortly after the dream team took over, the
remaining 15 catalog outlet stores were sold, and JCP acquired 16.6 percent of the Martha
Stewart Living Omnimedia stock (Journal Staff and Wire Report 2011).
J.C. Penney Financial Analysis 6
Financial Ratio Summaries
The primary goal of financial executives is to maximize shareholder’s wealth. According
to GAAP, or generally accepted accounting principles, the four key financial statements include;
the income statement, balance sheet, cash flow statement, and statement of owner’s equity. (See
Appendix for consolidated JCP statements). From these statements, key financial ratios are
calculated “to compare the firm’s performance to that of other firms in the same industry,” and
to…”evaluate trends in the firm’s financial position over time” (Brigham & Houston, 2009).
Financial executives should take corrective action to impede financial distress or continue to
maximize shareholder’s wealth.
Liquidity Ratios
Liquidity ratios are used to determine if an organization is able to pay off current debts.
JCP’s current ratio, for period ending January 28, 2012, (Yahoo! Finance, 2012), is 1.84,
followed by 2.41 for 2011 and 2.05 for 2010. A 24% change in the current ratio from 2011 to
2012 can be explained by current liabilities growing larger than current assets. Another reason
for their high current ratio is a large amount of inventory and an over $100 million dollar
increase in accounts receivable.
Asset Management Ratios
Asset management ratios include; inventory, days sales outstanding, fixed asset, and total
asset turnovers. All of these ratios measure how effectively JCP is managing its assets (Brigham
& Houston, 2009).
For 2012, JCP has an inventory turnover ratio of 3.4 (MSN Money, 2012). The
department store industry has an average inventory ratio of 6.4 (2012).This tells management
J.C. Penney Financial Analysis 7
that their assets are not being used effectively. JCP is selling and restocking inventory at half the
rate of industry.
Days sales outstanding, is a financial ratio used to evaluate accounts receivable (Brigham
& Houston, 2009). The ratio shows “how many days’ sales are tied up in receivables" (2009).
The industry average is consistent with JCP’s current days sales outstanding ratio of 6.5 (Yahoo
Fiance, 2012).
The fixed assets turnover ratio shows “…how effectively the firm uses its plant and
equipment” (Brigham & Houston, 2009). JCP has remained consistent with a 3.3 fixed assets
turnover ratio, from 2009 through 2012 (Yahoo Fiance, 2012). This shows that JCP is using their
property, plant and equipment effectively.
Total assets turnover ratio is sales divided by total assets (Brigham & Houston, 2009).
This financial ratio will let firm executives know the turnover of all its assets (2009). 2012 shows
a 1.51 ratio; while 2011 was 1.36 and 2010 was 1.40. An increase in total assets turnover shows
JCP is increasing the effectiveness of sales to assets.
Debt Management Ratios
Debt management ratios are used to measure how effectively a firm manages its debt.
“Debt will increase, or “leverage up,” a firm’s ROE (return on equity), if the firms earns more on
its assets than the interest rate it pays on debt” (Brigham & Houston, 2009). Debt management
ratios include; total debt to assets and times-interest earned ratio (2009).
The debt ratio is figured by dividing total debt by total assets. For the period ending
January 28, 2012, JCP has a debt ratio of .65, followed by .58 for 2011, and .62 for 2010 (MSN
Money, 2012). A debt ratio of .65 means that creditors have supplied 65% of their total debt. The
J.C. Penney Financial Analysis 8
industry standard for debt to equity ratios is 41.4% (MSN Money, 2012). This will make it
extremely difficult for JCP to raise more debt capital and greatly increases risk.
“The times-interest-earned ratio is determined by dividing earnings before interest and
taxes (EBIT) by the interest charges” (Brigham & Houston, 2009). This ratio measures the extent
operating income can decrease before the firm is unable to pay its annual interest costs (2009).
This ratio is -.0088 for 2012, 1.39 for 2011, and 1.64 for 2010. A negative times-interest ratio
suggests that JCP is not earning enough income to pay its creditors.
Profitability Ratios
This set of financial ratios show how profitable the firm is operating and utilizing its
assets, “…which reflect the net result of all of the financial policies and operating decisions”
(Brigham & Houston, 2009). These ratios include operating margin and profit margin.
JCP’s operating margin for 2012 is 2.81%, while the industry average is 8.37% (MSN
Money, 2012). Operating costs are extremely high. This is not surprising with over 5 billion
dollars worth of plant, property, and equipment. JCP has 159,000 employees with a market cap
of 7.32 million, while Kohl’s operates with 30,000 employees with a market cap of 11.48 million
(2012). They also have the same number of stores at 1100 (2012). To survive in this industry,
JCP must reduce operating costs, or restructure required employees. With a large amount of
fixed assets, any fluctuation in revenue will greatly reduce net income.
Profit margins, also called net profit margins, “… measure how much money a company
squeezes from its total revenue or total sales “(Brigham & Houston, 2009). This is a firm’s
bottom line. For 2012, JCP has a profit margin of -0.88% (MSN Money, 2012). This can be
explained by two reasons. The first reason would be that the operating margin was drastically
lower because of high operating costs. Secondly, because of JCP’s high use of capital debt, the
J.C. Penney Financial Analysis 9
net income is after interest. This affects the numerator of the profit margin formula; net income
divided by sales.
Market Share
As of Friday, May 18th, 2012, JCP’s stock price closed at $26.29. The 52 week high was
$43.18 and the low was $23.44. Competitors Sears and Kohl’s are trading at $52.23 and $47.19
respectively, at least double of what JCP is trading at.
Due to JCP’s negative earnings, the Price Earnings Ratio is null, making this ratio
unusable as a measure of profitability. The industry average is 14.93. JCP’s previous years Price
Earnings Ratios were 20.17 in 2011 and 23.65 in 2010 (The Street Ratings, 2012). ”In general, a
high P/E suggests that investors are expecting higher earnings growth in the future compared to
companies with a lower P/E” (Investopedia, 2012). JCP shareholders can expect lower earnings,
especially if the following quarters continue to see lost profit.
The past market-to-book ratio of JCP continued to rise during the last three years, starting
at 1.24 in January, 2010 and grew to 2.19 by January, 2012. Since the number is greater than
one, it is trading above book value. Looking at this past quarter, JCP’s market-to-book ratio
dropped to 1.44. Industry average is 3.14 and the S&P 500 average is 2.10. ” A lower price-tobook ratio makes a stock more attractive to investors seeking stocks with lower market values
per dollar of equity on the balance sheet” (The Street Ratings, 2012).
JCP is underperforming not only with its competition, but also with the S&P 500.
Shareholders have a reason to be concerned, but new investors willing to accept a higher risk
investment would be buying in at a heavy discount compared to JCP’s peers.
J.C. Penney Financial Analysis 10
Capital Structure & WACC
WACC INPUTS
Risk Free Debt
3.00%
Cost of Debt
5.00%
Equity Risk Premium
5.00%
Alpha
0.00%
Country Risk
0.00%
Industry WACC Calculation
Beta (Unlevered)
1.18
Industry D/E Ratio
41.40%
Tax Rate (5 years)
20.00%
Beta (re-levered)
Cost of Debt (after-tax)
1.57
4.00%
Debt/Capital
29.30%
WAC (debt)
1.20%
Cost of Equity (CAPM)
11.10%
Equity/Capital
70.70%
WAC (equity)
7.80%
WACC CONCLUSION
9.00%
J.C. Penney Financial Analysis 11
The capital structure of an organization, (as shown in previous chart), involves three
components, debt, preferred stock, and common equity (Brigham & Houston, 2009). “The target
proportions of debt, preferred stock, and common equity, along with the costs of those
components, are used to calculate the firm’s weighted average cost of capital” (2009). JCP’s
current debt is 65.1% and common equity is 34.9%, with no preferred stock (Yahoo Fiance,
2012).
A required rate of return is expected by both the stockholders and lenders of JCP.
The required return from stockholders is 11.1%, while lenders require 5%.
JCP’s beta is 1.57 (WikiWealth, 2012), which means it has a larger amount of risk then
industry (Hawawini & Viallet, 2011). The beta is “…a metric that shows the extent to which a
given stocks’ returns move up and down with the stock market” (2011). Compared to
competition, Kohl’s has the lowest beta at .6 while Saks Fifth Avenue has a beta of 2.06. Due to
the stock market and it validity, it should be questioned how effective the beta is used in
analysis.
JCP uses 65% debt to equity to finance operations (MSN Money, 2012). Ideally, leverage
is increased without affecting equity. This in turn increases the risk that JCP will be able to pay
higher interest rates. Leverage increases both JCP’s gain or loses. Because of a negative cash
flow of over $1 billion dollars, JCP will be unable to secure more debt.
Cash Flow
A firm receives cash from three separate sources; “(1) from its operations when
customers pay the invoices that were sent to them; (2) from selling assets (an investment
decision or, more precisely, a divestment of asset disposal decision); and (3) from borrowing or
issuing new shares (a financing decision)” (Hawawini, Viallett, 2012).
J.C. Penney Financial Analysis 12
For the period ending January 26, 2012, JCP had a loss of net income of $152 million
(Yahoo Fiance, 2012). The total cash flows from operating activities were $820 million (2012).
Depreciation totaled $518 million, with adjustments to net income at $313 million. The changes
in inventory were $297 million (2012). The negative outflows of cash from operations, causes a
loss of $156 million from a change in liabilities and other operating activities which would result
in a positive cash flow of $882 million dollars from operating activities (2012).
While operating activities earned $882 million, investing activities lost $870 million
(Yahoo Fiance, 2012). The only positive cash flow from investing was $17 million from private
investments. 72.8% of the investing losses stems from capital expenditures, while 29% of JCP
losses were from other cash flows from investing activities (2012).
JCP paid $178 million dollars in dividends and $45 million from other cash flows from
financing activities. An astronomical loss of $832 million was due to the sale purchase of stock
and a loss of $1.065 billion dollars through financing. This leaves JCP with an overall change in
cash and cash equivalents of 1.115 billion dollars for period ending January 28, 2012.
International Affairs
JCP does business with consumers worldwide, however does not have international
locations (J.C. Penney, 2012). Regardless of not having significant international relations, JCP
must consider international competitors, the possibility of the U.S. dollar losing value, and
higher inflation which results in higher interest rates.
The purchasing power parity relation (PPP) states that, “… the difference in the rate of
change in prices at home and abroad—the difference in the inflation rates—is equal to the
percentage depreciation or appreciation of the exchange rate” (WikiWealth, 2012). If the PPP
was constant, the foreign exchange rate would always equal one.
J.C. Penney Financial Analysis 13
If real interest rates vary between two countries, it is probable that capital would flow
from the country with the lower rate to the county with a higher rate, until they reach
equilibrium. This is known as the “Fisher Effect” (Hawawini, Viallet, 2011). Therefore “... the
difference in the expected interest rates between two countries reflects the difference in their
expected inflation rates,” which is known as the International Fisher Effect (2011). Ultimately,
all of these areas impact not only international business, but also impacts the financial system
within the company.
Pricing Strategy
The CEO of JCP, Ron Johnson, was quoted as saying "we want our customers to shop on
their terms, not ours. By setting our store monthly and maintaining our best prices for an entire
month, we feel confident that customers will love shopping when it is convenient for them,
rather than when it is expedient for us” (Heller, 2012). The JCP of old has dropped the high/low
pricing strategy, requiring coupon cutting or getting up at the crack of dawn for special sales, in
favor of the “Fair and Square” strategy.
Unlike Wal-Mart's every day low price, JCP is focusing on three tiers of pricing to bring
customers in every month of the year instead of only a few months. The first offering is "best
price." Merchandise tags that have blue labels on them will be offered on the first and third
Fridays of the month. These days correspond when many customers receive their paychecks.
"Best price" equates to clearance pricing of other retailers, without the negative connotation of
bargain basement shopping that JCP is trying to avoid. The second is “month-long values” on
specific items. These are sale items that do not require coupons or shopping during certain hours
or days. The last offering is red tag pricing indicating "everyday low prices." What makes red tag
pricing different is that they are 40 percent off 2011’s retail prices (Kim, 2012).
J.C. Penney Financial Analysis 14
"JCP's strategy is predicated on competing based on service and merchandise quality
rather than price alone" (Levine-Weinberg, 2012). Unfortunately employees are not as upbeat
due to large scale layoffs, which can translate into poor customer service. Another issue is the
merchandise has not changed and new partnerships will not be in place until late 2012 (LevineWeinberg, 2012). Another change JCP made is rounding up their pricing to 00 instead of .99 or
.95. The purpose of this is to give JCP the image of an upscale retailer.
Risk
Looking at the last few years of net income, management at JCP has not improved
profitability. Johnson plans to reinvent JCP by 2015. "All it takes is courage," he told several
hundred media, fashion and financial industry professionals. "We can change a brand overnight.
And we're going to do that starting 2.1.12" (Groth, 2012).
JCP faces a major business risk with its new pricing strategy, detailed in the previous
section. With the current economy and the short period in which the “Fair and Square” pricing
strategy has been in place, eliminating coupons and dramatic sales have alienated coupon and
bargain shoppers, at least in the initial stages of JCP’s evolution. One article stated “Kohl’s
(KSS) may be the biggest beneficiary, particularly over the next 2-years” (Levine-Weinberg,
2012). Macy’s profits for the first quarter of 2012 were up 38% and CEO Terry Lundgren told,
Evan Clark at Women's Wear Daily, they are going to continue to get JCP's customers while the
department store takes time to revamp (Lutz & Bhasin, 2012).
Another business risk Johnson and JCP faces is the much needed facelift to its retail
stores, and how customers will react to another major change to their shopping experience.
Johnson is using his past success, the "Genius Bar" concept, into how the new stores will look
(Groth, 2012). The physical transformation incorporates three concepts; “The Shops™ will
consist of up to 100 curated stores, shops and boutiques along an engaging pathway known as
J.C. Penney Financial Analysis 15
The Street™. The Street will surround The Square™, which is a reinvented center core
experience offering fun, helpful services and attractions that customers will love” (Summary
Annual Report, 2011).
An additional risk factor to consider is that JCP’s facing lower profit margins due to the
rising cost of raw materials needed to construct merchandise. An example is cotton, which has
increased 80.5% since last year (Wikinvest, 2012). Cost control will need to be scrutinized.
"Analyst estimates have plunged over the past three months, with the current average
estimate being an 8 cent adjusted loss per share, on an 11% decline in revenue" (LevineWeinberg, 2012). What makes further analysis difficult is that JCP is not reporting quarterly
sales and income. This is creating a lot of uncertainty for stakeholders and the reward will need
to be substantial to make the risk worthwhile.
Conclusion
Despite the current state of JCP and the formal change in leadership within the company,
JCP continues to prove itself to be a company dedicated to keeping a competitive advantage over
their competitors. Whether it is the services provided, or the range of products for customers to
select from, JCP is a company with a track record of financial stability. With the present shift in
JCP culture and structure, it was expected that there would be a decrease in the company's value.
But the risk that the company has taken, as well as its long standing track record, it is likely that
JCP will charge through the current adversity and remain an industry leader.
J.C. Penney Financial Analysis 16
Appendix
Direct Competitor Comparison
JCP
KSS
M
PVT1
Industry
Market Cap:
5.74B
11.47B
14.61B
N/A
1.80B
Employees:
159,000
30,000
171,000
N/A
10.12K
Qtrly Rev Growth
(yoy):
-20.10%
1.90%
4.30%
N/A
0.30%
Revenue (ttm):
16.47B
18.88B
26.66B
21.65B1
1.94B
Gross Margin
(ttm):
35.27%
37.69%
40.32%
N/A
37.31%
EBITDA (ttm):
680.00M
2.88B
3.52B
N/A
216.70M
Operating Margin
(ttm):
1.00%
11.06%
9.18%
N/A
7.64%
Net Income (ttm):
-379.00M
1.12B
1.31B
N/A
N/A
EPS (ttm):
-1.77
4.31
3.06
N/A
0.15
P/E (ttm):
N/A
10.95
11.54
N/A
20.59
PEG (5 yr
expected):
0.78
0.74
0.81
N/A
0.84
P/S (ttm):
0.34
0.60
0.55
N/A
0.82
KSS = Kohl's Corp.
M = Macy's, Inc.
Pvt1 = Sears, Roebuck and Co. (privately held)
Industry = Department Stores
J.C. Penney Financial Analysis 17
Income Statement
Period Ending
Jan 28, 2012
Jan 29, 2011
Jan 30, 2010
Total Revenue
17,260,000
17,759,000
17,556,000
Cost of Revenue
11,042,000
10,799,000
10,646,000
6,218,000
6,960,000
6,910,000
-
-
-
5,251,000
5,585,000
5,752,000
Non Recurring
451,000
32,000
-
Others
518,000
511,000
495,000
-
-
-
832,000
663,000
Gross Profit
Operating Expenses
Research Development
Selling General and Administrative
Total Operating Expenses
Operating Income or Loss
(2,000)
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
(2,000)
(20,000)
-
812,000
663,000
Interest Expense
227,000
231,000
260,000
Income Before Tax
(229,000)
581,000
403,000
(77,000)
203,000
154,000
-
-
378,000
249,000
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
(152,000)
Non-recurring Events
Discontinued Operations
-
11,000
2,000
Extraordinary Items
-
-
-
Effect Of Accounting Changes
-
-
-
Other Items
-
-
-
389,000
251,000
-
-
389,000
251,000
Net Income
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
(152,000)
(152,000)
Yahoo Finance. (2012)
J.C. Penney Financial Analysis 18
Balance Sheet
Period Ending
Jan 27, 2012 Jan 28, 2011 Jan 29, 2010
Assets
Current Assets
Cash And Cash Equivalents
175,000
169,000
163,000
1,332,000
2,453,000
2,848,000
413,000
334,000
395,000
2,916,000
3,213,000
3,024,000
245,000
201,000
222,000
5,081,000
6,370,000
6,652,000
-
-
-
5,176,000
5,231,000
5,357,000
Goodwill
-
-
-
Intangible Assets
-
-
-
Accumulated Amortization
-
-
-
1,167,000
1,467,000
572,000
-
-
-
11,424,000
13,068,000
12,581,000
2,525,000
2,647,000
2,856,000
231,000
-
393,000
-
-
-
Total Current Liabilities
2,756,000
2,647,000
3,249,000
Long Term Debt
2,871,000
3,099,000
2,999,000
Other Liabilities
899,000
670,000
738,000
Deferred Long Term Liability Charges
888,000
1,192,000
817,000
Minority Interest
-
-
-
Negative Goodwill
-
-
-
7,414,000
7,608,000
7,803,000
Misc Stocks Options Warrants
-
-
-
Redeemable Preferred Stock
-
-
-
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Other Assets
Deferred Long Term Asset Charges
Total Assets
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Liabilities
Stockholders' Equity
J.C. Penney Financial Analysis 19
Preferred Stock
-
-
-
Common Stock
108,000
118,000
118,000
1,412,000
2,222,000
2,023,000
Treasury Stock
-
-
-
Capital Surplus
3,699,000
3,925,000
3,867,000
Other Stockholder Equity
(1,209,000)
Total Stockholder Equity
4,010,000
5,460,000
4,778,000
Net Tangible Assets
4,010,000
5,460,000
4,778,000
Retained Earnings
(805,000)
(1,230,000)
Yahoo Finance. (2012)
J.C. Penney Financial Analysis 20
Statement of Cash Flow
Period Ending
Net Income
Jan 27,
2012
Jan 28,
2011
Jan 29,
2010
(152,000)
389,000
251,000
511,000
495,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation
518,000
Adjustments To Net Income
313,000
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities
Total Cash Flow From Operating
Activities
(89,000)
297,000
(67,000)
820,000
(5,000)
-
436,000
-
(141,000)
120,000
(189,000)
235,000
27,000
36,000
592,000
1,573,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
Investments
(634,000)
17,000
(499,000)
(600,000)
-
-
Other Cash flows from Investing Activities
(253,000)
14,000
13,000
Total Cash Flows From Investing
Activities
(870,000)
(485,000)
(587,000)
(189,000)
(183,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid
(178,000)
Sale Purchase of Stock
(832,000)
Net Borrowings
Other Cash Flows from Financing Activities
Total Cash Flows From Financing
Activities
Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
-
8,000
4,000
(301,000)
(113,000)
(45,000)
(2,000)
(3,000)
(1,065,000)
(496,000)
(327,000)
(1,115,000)
(389,000)
659,000
Yahoo Finance. (2012)
J.C. Penney Financial Analysis 21
J. C. Penney Company, Inc. (JCP) - NYSE
Prev Close:
26.29
Open:
26.29
Bid:
26.66 x 600
Ask:
26.82 x 200
1y Target Est:
Beta:
Next Earnings Date:
35.21
1.55
8-Aug-12
Day's Range:
25.84 - 26.75
52wk Range:
23.44 - 43.18
Volume:
7,499,470
Avg Vol (3m):
6,014,450
Market Cap:
5.82B
P/E (ttm):
N/A
EPS (ttm):
-1.77
Div & Yield:
0.80 (3.00%)
Yahoo Finance. (2012)
J.C. Penney Financial Analysis 22
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J.C. Penney Financial Analysis 24
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J.C. Penney Financial Analysis 25
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