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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.13
JCP's Cash to Debt is ranked higher than
50% of the 1282 Companies
in the Global Department Stores industry.

( Industry Median: 0.75 vs. JCP: 0.13 )
JCP' s 10-Year Cash to Debt Range
Min: 0.01   Max: 1.44
Current: 0.13

0.01
1.44
Equity to Asset 0.22
JCP's Equity to Asset is ranked lower than
51% of the 1268 Companies
in the Global Department Stores industry.

( Industry Median: 0.48 vs. JCP: 0.22 )
JCP' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.42
Current: 0.22

0.2
0.42
F-Score: 4
Z-Score: 0.97
M-Score: -2.40
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

vs
industry
vs
history
Operating margin (%) -4.19
JCP's Operating margin (%) is ranked lower than
52% of the 1284 Companies
in the Global Department Stores industry.

( Industry Median: 5.07 vs. JCP: -4.19 )
JCP' s 10-Year Operating margin (%) Range
Min: -11.97   Max: 9.66
Current: -4.19

-11.97
9.66
Net-margin (%) -5.57
JCP's Net-margin (%) is ranked lower than
52% of the 1284 Companies
in the Global Department Stores industry.

( Industry Median: 3.36 vs. JCP: -5.57 )
JCP' s 10-Year Net-margin (%) Range
Min: -11.7   Max: 5.79
Current: -5.57

-11.7
5.79
ROE (%) -25.04
JCP's ROE (%) is ranked lower than
52% of the 1258 Companies
in the Global Department Stores industry.

( Industry Median: 9.22 vs. JCP: -25.04 )
JCP' s 10-Year ROE (%) Range
Min: -44.36   Max: 27.8
Current: -25.04

-44.36
27.8
ROA (%) -5.91
JCP's ROA (%) is ranked higher than
50% of the 1287 Companies
in the Global Department Stores industry.

( Industry Median: 4.19 vs. JCP: -5.91 )
JCP' s 10-Year ROA (%) Range
Min: -12.86   Max: 9.17
Current: -5.91

-12.86
9.17
ROC (Joel Greenblatt) (%) -7.53
JCP's ROC (Joel Greenblatt) (%) is ranked higher than
50% of the 1282 Companies
in the Global Department Stores industry.

( Industry Median: 17.09 vs. JCP: -7.53 )
JCP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -22.99   Max: 39.64
Current: -7.53

-22.99
39.64
Revenue Growth (3Y)(%) -13.90
JCP's Revenue Growth (3Y)(%) is ranked lower than
52% of the 1118 Companies
in the Global Department Stores industry.

( Industry Median: 5.50 vs. JCP: -13.90 )
JCP' s 10-Year Revenue Growth (3Y)(%) Range
Min: -18.9   Max: 14.4
Current: -13.9

-18.9
14.4
» JCP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

JCP Guru Trades in Q4 2013

David Abrams 1,000,000 sh (New)
John Keeley 260,000 sh (New)
Steven Cohen 421,885 sh (+94.35%)
Mario Gabelli 892,500 sh (+59.95%)
Chuck Royce 948,431 sh (+8.87%)
Paul Tudor Jones 40,686 sh (+6.92%)
Michael Price 364,700 sh (unchged)
Larry Robbins 12,370,487 sh (unchged)
Richard Perry Sold Out
Kyle Bass Sold Out
David Tepper Sold Out
Whitney Tilson Sold Out
Jeremy Grantham 87,429 sh (-30.22%)
George Soros 13,836,361 sh (-30.77%)
Murray Stahl 158,798 sh (-41.76%)
» More
Q1 2014

JCP Guru Trades in Q1 2014

Jean-Marie Eveillard 5,000 sh (New)
Chuck Royce 1,700,831 sh (+79.33%)
David Abrams 1,500,000 sh (+50%)
Steven Cohen Sold Out
George Soros Sold Out
Paul Tudor Jones Sold Out
Jeremy Grantham Sold Out
Mario Gabelli 751,140 sh (-15.84%)
Larry Robbins 9,370,487 sh (-24.25%)
Michael Price 264,700 sh (-27.42%)
John Keeley 125,000 sh (-51.92%)
Murray Stahl 10,724 sh (-93.25%)
» More
Q2 2014

JCP Guru Trades in Q2 2014

Paul Tudor Jones 27,057 sh (New)
Chuck Royce 2,116,831 sh (+24.46%)
Steven Cohen 250,000 sh (unchged)
Jean-Marie Eveillard 5,000 sh (unchged)
David Abrams 1,500,000 sh (unchged)
John Keeley 125,000 sh (unchged)
Michael Price Sold Out
Murray Stahl Sold Out
Mario Gabelli 742,020 sh (-1.21%)
Larry Robbins 5,438,051 sh (-41.97%)
» More
Q3 2014

JCP Guru Trades in Q3 2014

Jim Simons 159,600 sh (New)
Ruane Cunniff 24,000 sh (New)
Mario Gabelli 822,600 sh (+10.86%)
David Abrams 1,500,000 sh (unchged)
Jean-Marie Eveillard 5,000 sh (unchged)
Steven Cohen Sold Out
John Keeley 120,000 sh (-4%)
Chuck Royce 1,827,884 sh (-13.65%)
Paul Tudor Jones 20,457 sh (-24.39%)
Larry Robbins 196,495 sh (-96.39%)
» More
» Details

Insider Trades

Latest Guru Trades with JCP

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ruane Cunniff 2014-09-30 New Buy$8.55 - $11.2 $ 6.59-33%24000
Michael Price 2014-06-30 Sold Out 0.28%$7.25 - $9.73 $ 6.59-24%0
George Soros 2014-03-31 Sold Out 1.1%$5.08 - $9.15 $ 6.59-9%0
David Abrams 2014-03-31 Add 50%0.33%$5.08 - $9.15 $ 6.59-9%1500000
Michael Price 2014-03-31 Reduce -27.42%0.12%$5.08 - $9.15 $ 6.59-9%264700
John Keeley 2014-03-31 Reduce -51.92%0.02%$5.08 - $9.15 $ 6.59-9%125000
Jean-Marie Eveillard 2014-03-31 New Buy$5.08 - $9.15 $ 6.59-9%5000
Richard Perry 2013-12-31 Sold Out 2.2%$6.42 - $10.19 $ 6.59-21%0
David Abrams 2013-12-31 New Buy0.72%$6.42 - $10.19 $ 6.59-21%1000000
George Soros 2013-12-31 Reduce -30.77%0.58%$6.42 - $10.19 $ 6.59-21%13836361
Whitney Tilson 2013-12-31 Sold Out 0.14%$6.42 - $10.19 $ 6.59-21%0
David Tepper 2013-12-31 Sold Out 0.1%$6.42 - $10.19 $ 6.59-21%0
John Keeley 2013-12-31 New Buy0.04%$6.42 - $10.19 $ 6.59-21%260000
Mario Gabelli 2013-12-31 Add 59.95%0.02%$6.42 - $10.19 $ 6.59-21%892500
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on JC Penney Co Inc

Bill Ackman Comments on J.C. Penney - Oct 04, 2013

We chose to exit our entire stock and total return swap position in J.C. Penney (JCP) at the end of August and incurred a loss of approximately 50% of our original investment. We did so because of a disagreement with the board about the timing and necessity for a CEO change at the Company, the valuation implied by the then stock price, and the risk of a successful turnaround.Turnarounds are inherently risky and require a totally aligned board of directors, a CEO with substantial turnaround experience, and the support and confidence of all stakeholders. Without all of these ingredients, we are bearish on J.C. Penney's prospects.

I have said before that investing requires the confidence and conviction to believe that one is right even when the whole world, including other smart, high-profile investors, tells you that you are wrong. Buying 25% of General Growth for pennies per share during the financial crisis and shortly before its bankruptcy required detailed analysis, execution, and confidence. Staying short MBIA stock, when Warburg Pincus, with access to inside information, invested a billion dollars of capital into MBIA, and Marty Whitman, a famous distressed investor, invested hundreds of millions in capital, required a similar degree of analysis, confidence and conviction.But confidence and conviction without humility can be dangerous in the investment business.

When one shares an investment thesis publicly, it can be more difficult to change one's mind because the human mind has a tendency to ignore data that are inconsistent with a firmly held view, and particularly so, when that view is aired publicly. That is likely why Wall Street analysts continued to rate MBIA a buy until it nearly went bankrupt. And, I believe it is why analysts will likely keep their buy ratings until Herbalife is shut down by regulators or the company faces substantial distributor defections.I have learned that the key to long-term success in investing is to balance confidence with the humility to recognize when the facts are no longer consistent with one's original investment thesis. It is critically important not to let psychological factors interfere with economic rationality in investment decision making.We and the other members of the J.C. Penney board were extremely enthusiastic about the Company's prospects under Ron Johnson's leadership in light of his track record at Mervyn's, Target, and Apple, and his creativity and vision for the Company. However, when the results continued to underperform our expectations, we and the rest of the board elected to changecourse.While earlier this year we believed that J.C. Penney could be turned around with adequate capital – we believed the $2.25 billion Goldman financing would suffice – this was only the case if the capital were spent extremely judiciously and an experienced turnaround retail operating team was at the helm. When we became concerned about the board's and management's decision making, we voiced our concerns publicly in an open letter to the board and then exited in a block transaction as promptly as we could. While we were criticized in the press for airing our concerns, we did so because of our fiduciary duty to the Company's shareholders. Our candor likely contributed to our ability to exit at a modest discount to the last trade, as investors were made aware of our concerns and could form their own assessment of our views when we sold.Our willingness to change our mind and exit at a substantial loss on a high-profile investment should give you comfort that we will make rational investment decisions without regard to emotional, personal or other considerations. This approach will likely serve to mitigate losses in failed investments and is a critical component of our long-term approach.

From Bill Ackman's Pershing Square third quarter 2013 investor letter.


Check out Bill Ackman latest stock trades

Top Ranked Articles about JC Penney Co Inc

Charlie Munger's Human Misjudgment Framework and JC Penney - Part II
In my previous article, I discussed how we could apply a few human psychological tendencies from Charlie Munger (Trades, Portfolio)’s human misjudgment framework to J.C. Penney (JCP)’s failed turnaround plan laid out by Ron Johnson. In this article, I will further apply a few other tendencies to J.C. Penney’s fiasco under Johnson. Again, all the credit goes to Charlie Munger. Without him, this article would never have existed and I would have been deprived of much of the ignorance removal privilege now I enjoy everyday. Read more...
Bill Ackman Gains in Every Long Portfolio Position
With his enormous, hit-or-miss activist bets and bombastic style, owner of hedge fund Pershing Square Bill Ackman (Trades, Portfolio) stirs a great deal of controversy. In recent years several of his high-profile crusades failed to effect returns for his investors, such as at J.C. Penney (JCP) and Target (TGT), and his embattled short position in Herbalife (HLF). So far this year, he has begun to retreat from some of his other largest projects, such as Canadian Pacific Railway Ltd. (CP) and General Growth Properties (GGP), under better conditions. Below is an overview of the investor’s performance with the positions in his highly concentrated $8 billion portfolio, all of which are currently profitable. Read more...
Top-Returning Manager Larry Robbins' Stocks at 52-Week Lows
The market may have soared, but the average hedge fund returned only 7.4% in 2013. Meanwhile, Larry Robbins (Trades, Portfolio)’ Glenview Capital did multiple laps around them, with his $1.8 billion Glenview Capital Opportunity Fund return more than 100% over the year, to become the top-performing hedge fund.   Read more...
J.C. Penney - Formidable Days
During the first nine months of 2009, for every dollar of gross margin the operating expenses less depreciation, pension and restructuring costs ("OPEX") at J.C. Penney (JCP) were 81 cents. But they were $1.29 per one dollar of gross margin for the first nine months of 2013. Read more...
What Guru Investors Are Doing with J.C. Penney, Down 10%
J.C. Penney (JCP) faced a tumultuous 2013: Its turnaround plan failed to gain traction, its most prominent investor Bill Ackman (Trades, Portfolio) dropped his shareholding, and its stock price was depleted by 60%. Guru investors had varying takes on the complex situation and continue to as the company attempts to move forward. Read more...

Ratios

vs
industry
vs
history
P/B 0.83
JCP's P/B is ranked higher than
88% of the 1357 Companies
in the Global Department Stores industry.

( Industry Median: 2.32 vs. JCP: 0.83 )
JCP' s 10-Year P/B Range
Min: 0.54   Max: 4.53
Current: 0.83

0.54
4.53
P/S 0.17
JCP's P/S is ranked higher than
92% of the 1357 Companies
in the Global Department Stores industry.

( Industry Median: 0.87 vs. JCP: 0.17 )
JCP' s 10-Year P/S Range
Min: 0.12   Max: 0.99
Current: 0.17

0.12
0.99
EV-to-EBIT -13.19
JCP's EV-to-EBIT is ranked lower than
57% of the 1357 Companies
in the Global Department Stores industry.

( Industry Median: 17.38 vs. JCP: -13.19 )
JCP' s 10-Year EV-to-EBIT Range
Min: -5359.5   Max: 18.2
Current: -13.19

-5359.5
18.2
Current Ratio 1.77
JCP's Current Ratio is ranked higher than
77% of the 1280 Companies
in the Global Department Stores industry.

( Industry Median: 1.55 vs. JCP: 1.77 )
JCP' s 10-Year Current Ratio Range
Min: 1.08   Max: 2.67
Current: 1.77

1.08
2.67
Quick Ratio 0.43
JCP's Quick Ratio is ranked higher than
56% of the 1280 Companies
in the Global Department Stores industry.

( Industry Median: 0.83 vs. JCP: 0.43 )
JCP' s 10-Year Quick Ratio Range
Min: 0.31   Max: 1.6
Current: 0.43

0.31
1.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.83
JCP's Price/Tangible Book is ranked higher than
90% of the 1357 Companies
in the Global Department Stores industry.

( Industry Median: 3.33 vs. JCP: 0.83 )
JCP' s 10-Year Price/Tangible Book Range
Min: 0.63   Max: 4.52
Current: 0.83

0.63
4.52
Price/Median PS Value 0.39
JCP's Price/Median PS Value is ranked higher than
97% of the 1357 Companies
in the Global Department Stores industry.

( Industry Median: 1.08 vs. JCP: 0.39 )
JCP' s 10-Year Price/Median PS Value Range
Min: 0.23   Max: 2.57
Current: 0.39

0.23
2.57
Earnings Yield (Greenblatt) -7.60
JCP's Earnings Yield (Greenblatt) is ranked lower than
52% of the 1275 Companies
in the Global Department Stores industry.

( Industry Median: 6.30 vs. JCP: -7.60 )
JCP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.5   Max: 28.1
Current: -7.6

5.5
28.1
Forward Rate of Return (Yacktman) -16.17
JCP's Forward Rate of Return (Yacktman) is ranked higher than
54% of the 874 Companies
in the Global Department Stores industry.

( Industry Median: 11.36 vs. JCP: -16.17 )
JCP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -40.8   Max: 37.5
Current: -16.17

-40.8
37.5

Analyst Estimate

Jan15 Jan16 Jan17 Jan18
Revenue(Mil) 12,444 13,039 13,783 13,634
EPS($) -2.19 -1.03 0.09 0.13
EPS without NRI($) -2.19 -1.03 0.09 0.13

Business Description

Industry: Retail - Apparel & Specialty » Department Stores
Compare:M, DFIHY, SRHGY, JWN, KSS » details
Traded in other countries:JCP.Germany, JCP.Mexico,
J.C. Penney Co Inc was incorporated in Delaware in 2002. The Company is a holding company whose operating subsidiary J. C. Penney Corporation, Inc., was incorporated in Delaware in 1924. The Company sells merchandise and services to consumers through its department stores and through Internet website at jcp.com. Department stores and Internet generally serve the same type of customers and provide virtually the same mix of merchandise, and department stores accept returns from sales made in stores and via the Internet. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside jcpenney and home furnishings. In addition, the Company's department stores provide its customers with services such as styling salon, optical, portrait photography and custom decorating. The Company is operating 1,094 department stores in 49 states and Puerto Rico as of February 1, 2014. The Company's trademarks include of The JCPenney, JCP, monet, Liz Claiborne, Claiborne, Okie Dokie, Worthington, a.n.a, St. John's Bay, The Original Arizona Jean Company, Ambrielle, Decree, Stafford, J. Ferrar, Xersion, Total Girl and JCPenney Home Collection and Studio by JCPenney Home Collection. The Company's competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses, including the Internet, and other forms of retail ecommerce. The Company's business is subject to a wide array of laws and regulations.
» More Articles for JCP

Headlines

Articles On GuruFocus.com
A Few Reasons Why This Company Should Stage A Comeback Dec 12 2014 
A Few Reasons Why Target Will Get Better in the Future Dec 11 2014 
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Why JC Penney is a Risk Worth Taking Nov 28 2014 
The "Circle of Competence Trap" – Retail, Energy and Metal Sectors Nov 26 2014 
A Retailer in Turnaround Mode That Investors Should Not Miss Nov 19 2014 
JC Penney’s Mixed Q3 Leaves Investors Disappointed Nov 14 2014 
Walmart Remains The Leader In The Retail Sector Nov 14 2014 
Kohl´s Amazing Growing Oct 31 2014 
PVH Corp.: A Short SWOT Analysis Oct 21 2014 

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