The entity has 5.01
B in debt with debt to equity (D/E) ratio of 520.0 . This implies that the organization may be unable to create cash to meet all of its financial commitments. The company dividends can provide a clue to current valuation of the stock. This firm is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Now, let’s check JC Penney Revenue. Based on latest financial disclosure J C Penney Company Inc Holdi reported 11.69
B of revenue. This is 63.96% higher than that of the Consumer Cyclical sector, and 38.63% lower than that of
Department Stores industry, The Revenue for all stocks is 23.9% lower than J C Penney.
How important is JC Penney's Liquidity
JC Penney
financial leverage refers to using borrowed capital as a funding source to finance J C Penney ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JC Penney financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to JC Penney's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of JC Penney's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between JC Penney's total debt and its cash.
Is JC Penney valued sensibly by the market?
The big decline in price over the last few months for J C Penney Company Inc Holdimay raise some interest from investors. The Stock closed today at a share price of
0.39 on
9,008,586 in trading volume. The company directors and management failed to add value to investors and positioning the entity supply of money to exploit market volatility in
February. However, diversifying your holdings with JC Penney or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 8.88. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the J C Penney partners. JC Penney discloses 1.61 b in working capital. JC Penney is selling at 0.3999. That is 10.98 percent down. Opened at 0.3999. JC Penney Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 4 years. The previous year value of JC Penney Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 596,000,000. Also, JC Penney Net Income Per Employee is increasing over the last 4 years.
| 2010 | 2014 | 2019 | 2020 (projected) |
Interest Expense | 352 M | 313 M | 406 M | 393.62 M | Gross Profit | 3.49 B | 4.15 B | 4.26 B | 4.15 B |
Penney Corporation, Inc., sells merchandise through department stores. The company was founded in 1902 and is based in Plano, Texas. JC Penney operates under Department Stores classification in USA and is traded on BATS Exchange. It employs 90000 people.
Interest ExpenseGross ProfitTo conclude, we believe that at this point JC Penney is out of control with
close to average odds of financial distress within the next 2 years. Our up-to-date buy/sell recommendation on the corporate body is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of J C Penney. Please refer to our
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