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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 : 3/10

vs
industry
vs
history
Cash to Debt 0.19
JCP's Cash to Debt is ranked lower than
79% of the 895 Companies
in the Global Department Stores industry.

( Industry Median: 0.91 vs. JCP: 0.19 )
Ranked among companies with meaningful Cash to Debt only.
JCP' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.34 Max: 1.44
Current: 0.19
0.01
1.44
Equity to Asset 0.17
JCP's Equity to Asset is ranked lower than
91% of the 838 Companies
in the Global Department Stores industry.

( Industry Median: 0.47 vs. JCP: 0.17 )
Ranked among companies with meaningful Equity to Asset only.
JCP' s 10-Year Equity to Asset Range
Min: 0.17  Med: 0.34 Max: 0.42
Current: 0.17
0.17
0.42
F-Score: 5
Z-Score: 1.18
M-Score: -2.97
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 (%) -1.10
JCP's Operating margin (%) is ranked lower than
84% of the 894 Companies
in the Global Department Stores industry.

( Industry Median: 3.52 vs. JCP: -1.10 )
Ranked among companies with meaningful Operating margin (%) only.
JCP' s 10-Year Operating margin (%) Range
Min: -11.97  Med: 4.21 Max: 9.66
Current: -1.1
-11.97
9.66
Net-margin (%) -4.76
JCP's Net-margin (%) is ranked lower than
88% of the 894 Companies
in the Global Department Stores industry.

( Industry Median: 2.37 vs. JCP: -4.76 )
Ranked among companies with meaningful Net-margin (%) only.
JCP' s 10-Year Net-margin (%) Range
Min: -11.7  Med: 1.93 Max: 5.79
Current: -4.76
-11.7
5.79
ROE (%) -25.54
JCP's ROE (%) is ranked lower than
90% of the 881 Companies
in the Global Department Stores industry.

( Industry Median: 7.10 vs. JCP: -25.54 )
Ranked among companies with meaningful ROE (%) only.
JCP' s 10-Year ROE (%) Range
Min: -44.36  Med: 6.05 Max: 27.8
Current: -25.54
-44.36
27.8
ROA (%) -5.40
JCP's ROA (%) is ranked lower than
87% of the 901 Companies
in the Global Department Stores industry.

( Industry Median: 3.11 vs. JCP: -5.40 )
Ranked among companies with meaningful ROA (%) only.
JCP' s 10-Year ROA (%) Range
Min: -12.86  Med: 2.26 Max: 9.17
Current: -5.4
-12.86
9.17
ROC (Joel Greenblatt) (%) -2.12
JCP's ROC (Joel Greenblatt) (%) is ranked lower than
83% of the 897 Companies
in the Global Department Stores industry.

( Industry Median: 13.75 vs. JCP: -2.12 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
JCP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -22.99  Med: 10.98 Max: 42.52
Current: -2.12
-22.99
42.52
Revenue Growth (3Y)(%) -20.30
JCP's Revenue Growth (3Y)(%) is ranked lower than
93% of the 722 Companies
in the Global Department Stores industry.

( Industry Median: 2.80 vs. JCP: -20.30 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
JCP' s 10-Year Revenue Growth (3Y)(%) Range
Min: -20.3  Med: -3.00 Max: 12.4
Current: -20.3
-20.3
12.4
EBITDA Growth (3Y)(%) -23.50
JCP's EBITDA Growth (3Y)(%) is ranked lower than
88% of the 599 Companies
in the Global Department Stores industry.

( Industry Median: 2.20 vs. JCP: -23.50 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
JCP' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -48.6  Med: -8.70 Max: 60.9
Current: -23.5
-48.6
60.9
EPS Growth (3Y)(%) 53.50
JCP's EPS Growth (3Y)(%) is ranked higher than
95% of the 555 Companies
in the Global Department Stores industry.

( Industry Median: -1.30 vs. JCP: 53.50 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
JCP' s 10-Year EPS Growth (3Y)(%) Range
Min: -39.7  Med: -12.35 Max: 59.6
Current: 53.5
-39.7
59.6
» JCP's 10-Y Financials

Financials


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

» Details

Guru Trades

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)
David Abrams 1,500,000 sh (unchged)
First Eagle Investment 5,000 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

Ruane Cunniff 24,000 sh (New)
Jim Simons 159,600 sh (New)
Mario Gabelli 822,600 sh (+10.86%)
First Eagle Investment 5,000 sh (unchged)
David Abrams 1,500,000 sh (unchged)
Steven Cohen Sold Out
John Keeley 120,000 sh (-4.00%)
Chuck Royce 1,827,884 sh (-13.65%)
Paul Tudor Jones 20,457 sh (-24.39%)
Larry Robbins 196,495 sh (-96.39%)
» More
Q4 2014

JCP Guru Trades in Q4 2014

Paul Tudor Jones 153,807 sh (+651.86%)
Chuck Royce 1,998,384 sh (+9.33%)
Mario Gabelli 888,700 sh (+8.04%)
First Eagle Investment 5,000 sh (unchged)
David Abrams 1,500,000 sh (unchged)
Larry Robbins Sold Out
Ruane Cunniff Sold Out
John Keeley Sold Out
Jim Simons 155,600 sh (-2.51%)
» More
Q1 2015

JCP Guru Trades in Q1 2015

Joel Greenblatt 985,498 sh (New)
Jim Simons 3,163,800 sh (+1933.29%)
First Eagle Investment 5,000 sh (unchged)
David Abrams Sold Out
Mario Gabelli 851,500 sh (-4.19%)
Chuck Royce 1,836,384 sh (-8.11%)
Paul Tudor Jones 37,645 sh (-75.52%)
» More
» Details

Insider Trades

Latest Guru Trades with JCP

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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 (NYSE: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

Ratios

vs
industry
vs
history
P/B 1.40
JCP's P/B is ranked higher than
58% of the 860 Companies
in the Global Department Stores industry.

( Industry Median: 1.76 vs. JCP: 1.40 )
Ranked among companies with meaningful P/B only.
JCP' s 10-Year P/B Range
Min: 0.54  Med: 1.55 Max: 4.55
Current: 1.4
0.54
4.55
P/S 0.20
JCP's P/S is ranked higher than
85% of the 896 Companies
in the Global Department Stores industry.

( Industry Median: 0.71 vs. JCP: 0.20 )
Ranked among companies with meaningful P/S only.
JCP' s 10-Year P/S Range
Min: 0.12  Med: 0.41 Max: 0.99
Current: 0.2
0.12
0.99
PFCF 39.00
JCP's PFCF is ranked lower than
73% of the 457 Companies
in the Global Department Stores industry.

( Industry Median: 20.15 vs. JCP: 39.00 )
Ranked among companies with meaningful PFCF only.
JCP' s 10-Year PFCF Range
Min: 5.95  Med: 25.09 Max: 480.1
Current: 39
5.95
480.1
POCF 8.81
JCP's POCF is ranked higher than
68% of the 611 Companies
in the Global Department Stores industry.

( Industry Median: 13.53 vs. JCP: 8.81 )
Ranked among companies with meaningful POCF only.
JCP' s 10-Year POCF Range
Min: 2.56  Med: 10.42 Max: 115.28
Current: 8.81
2.56
115.28
EV-to-EBIT -50.16
JCP's EV-to-EBIT is ranked lower than
154% of the 714 Companies
in the Global Department Stores industry.

( Industry Median: 15.54 vs. JCP: -50.16 )
Ranked among companies with meaningful EV-to-EBIT only.
JCP' s 10-Year EV-to-EBIT Range
Min: -5359.5  Med: 8.25 Max: 18.2
Current: -50.16
-5359.5
18.2
Current Ratio 1.97
JCP's Current Ratio is ranked higher than
65% of the 846 Companies
in the Global Department Stores industry.

( Industry Median: 1.56 vs. JCP: 1.97 )
Ranked among companies with meaningful Current Ratio only.
JCP' s 10-Year Current Ratio Range
Min: 1.08  Med: 1.99 Max: 2.67
Current: 1.97
1.08
2.67
Quick Ratio 0.67
JCP's Quick Ratio is ranked lower than
61% of the 846 Companies
in the Global Department Stores industry.

( Industry Median: 0.88 vs. JCP: 0.67 )
Ranked among companies with meaningful Quick Ratio only.
JCP' s 10-Year Quick Ratio Range
Min: 0.31  Med: 0.83 Max: 1.6
Current: 0.67
0.31
1.6
Days Inventory 133.40
JCP's Days Inventory is ranked lower than
72% of the 854 Companies
in the Global Department Stores industry.

( Industry Median: 83.72 vs. JCP: 133.40 )
Ranked among companies with meaningful Days Inventory only.
JCP' s 10-Year Days Inventory Range
Min: 88.88  Med: 105.42 Max: 154.98
Current: 133.4
88.88
154.98

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.40
JCP's Price/Tangible Book is ranked higher than
63% of the 796 Companies
in the Global Department Stores industry.

( Industry Median: 2.10 vs. JCP: 1.40 )
Ranked among companies with meaningful Price/Tangible Book only.
JCP' s 10-Year Price/Tangible Book Range
Min: 0.63  Med: 1.79 Max: 4.52
Current: 1.4
0.63
4.52
Price/Median PS Value 0.49
JCP's Price/Median PS Value is ranked higher than
89% of the 702 Companies
in the Global Department Stores industry.

( Industry Median: 1.07 vs. JCP: 0.49 )
Ranked among companies with meaningful Price/Median PS Value only.
JCP' s 10-Year Price/Median PS Value Range
Min: 0.24  Med: 1.02 Max: 2.7
Current: 0.49
0.24
2.7
Earnings Yield (Greenblatt) (%) -1.99
JCP's Earnings Yield (Greenblatt) (%) is ranked lower than
84% of the 882 Companies
in the Global Department Stores industry.

( Industry Median: 5.20 vs. JCP: -1.99 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
JCP' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: -2  Med: 10.50 Max: 28.1
Current: -1.99
-2
28.1
Forward Rate of Return (Yacktman) (%) -18.77
JCP's Forward Rate of Return (Yacktman) (%) is ranked lower than
88% of the 502 Companies
in the Global Department Stores industry.

( Industry Median: 5.76 vs. JCP: -18.77 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
JCP' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -40.8  Med: 9.05 Max: 37.5
Current: -18.77
-40.8
37.5

Analyst Estimate

Jan16 Jan17 Jan18
Revenue(Mil) 12,637 13,067 13,617
EPS($) -1.23 -0.63 0.32
EPS without NRI($) -1.23 -0.63 0.32

Business Description

Industry: Retail - Apparel & Specialty » Department Stores
Compare:M, DFIHY, SRHGY, JWN, KSS » details
Traded in other countries:JCP.Switzerland, 0R2W.UK, JCP.Mexico, JCP.Germany,
JC Penney Co Inc was incorporated in the State of the State of Delaware on January 22, 2002. The Company sells merchandise and services to consumers through department stores and website at jcpenney.com. Its products include family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings. In addition, its department stores provide customers with services such as styling salon, optical, portrait photography and custom decorating. It operates approximately 1,062 department stores in 49 states and Puerto Rico. The Company has a diversified supplier base, both domestic and foreign, and are not dependent to any significant degree on any single supplier. It purchases merchandise from approximately 2,400 domestic and foreign suppliers. The Company's department stores and website generally serve the same type of customers and provide virtually the same mix of merchandise, and its department stores accept returns from sales made in stores and via the website. Its competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses, including those on the Internet, and other forms of retail commerce. The Company's trademarks include JCPenney, JCP, 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, monet, JCPenney Home, Studio JCP Home, Home Collection by JCPenney, Made for Life, Stylus, Sleep Chic, Home Expressions and Cooks JCPenney Home. The Company's business is subject to a wide array of laws and regulations.
» More Articles for JCP

Headlines

Articles On GuruFocus.com
Watch Those Price Tags: The Role of Pricing and Trust in Retail Jul 20 2015 
Post-Mortem Of A Failed Investment: J.C. Penney Jun 17 2015 
Why You Should Dump Macy's and Buy JCPenney Jun 09 2015 
Dillard's Is Not A Buy As Of Now May 26 2015 
Macy's Long-Term Growth Story Is Intact May 22 2015 
Kohl's Greatness Agenda To Drive Growth May 22 2015 
JC Penney – How Good Is The Turnaround Story? May 19 2015 
Kohl’s Stock Tumbles After Missing Q1 Earnings Expectations May 19 2015 
JC Penney’s Q1 Adds Smiles To Investors May 18 2015 
Kohl’s Reports A Weak Q1 Sales May 18 2015 

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