Swot Analysis Of Penney Company Inc.

1100 Words Dec 6th, 2014 5 Pages
J.C. Penney Company
J. C. Penney Company Inc. is a major retail company which sells merchandise and services to consumers through its department stores and through its internet website jcp.com. It operates about 1100 department stores throughout United States, Alaska and Puerto Rico. It sells family apparel, accessories, jewelry, beauty products and home furnishings. In addition, the company provides its customers with services as styling salon, optical, portrait photography and custom decorating.
J.C. Penney Corp., its only subsidiary was founded by James Cash Penney in 1902. J.C. Penney Company was formed in 2002 and is a publicly traded company. The top competitors of J.C. Penney are Kohl’s Corporation, Macy’s Inc. and Sears,
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Key Statistics: (Data from Yahoo! Finance)
Financial Highlights
Fiscal Year
Fiscal Year Ends: Feb 1
Most Recent Quarter (mrq): Nov 1, 2014

Profitability
Profit Margin (ttm): -5.57%
Operating Margin (ttm): -4.52%

Management Effectiveness
Return on Assets (ttm): -2.98%
Return on Equity (ttm): -26.67%

Income Statement
Revenue (ttm): 12.15B
Revenue Per Share (ttm): 39.82
Qtrly Revenue Growth (yoy): -0.50%
Gross Profit (ttm): 3.49B
EBITDA (ttm)6: 86.00M
Net Income Avl to Common (ttm): -677.00M
Diluted EPS (ttm): -2.22
Qtrly Earnings Growth (yoy): N/A

Balance Sheet
Total Cash (mrq): 684.00M
Total Cash Per Share (mrq): 2.24
Total Debt (mrq): 5.43B
Total Debt/Equity (mrq): 223.33
Current Ratio (mrq): 1.77
Book Value Per Share (mrq): 7.97

Cash Flow Statement
Operating Cash Flow (ttm): -71.00M
Levered Free Cash Flow (ttm): -136.00M

J.C. Penney is having an improving financial position in 2014. It reported net sales of $2.764 billion, a slight drop from last year which was $2.779 billion. Its gross margin rose from 29.5% a year ago to 36.6%. Operating cash flow also saw better results, from a use of cash of $737 million in the third quarter of 2013 to a use of $320 million this year. Also the company’s EBITDA, which was negative last year, turned positive this year and is expected to remain so. Net income improved 62% from the same quarter last year. It also expects to end the year with $2.1 million in liquidity.
Comparison to Competitors
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