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JCP
J.C. Penney Company Inc. - NYSE

4/17/2014, 8:29 AM ET
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  • Why Retail? Why J.C. Penney?
    Nicholas Mushaike Yesterday, 8:46 AM 22 Comments

    Summary

    • $2.5 trillion sector with great upside potential.
    • Stock trading at more than $2.5 below book value.
    • Buy opportunity created by the recent market correction of about 10% interruption in the stocks uptrend.
  • J.C. Penney: Sometimes The Market Gives You A Gift To Buy
    Dante's Investing Ideas Tue, Apr. 15 55 Comments

    Summary

    • JCP has survived a near death experience and emerged victorious.
    • After a huge rally, the stock is close to its lows due to market conditions.
    • Use market weakness as an opportunity to accumulate or cover. It is a gift.
  • J.C. Penney: What To Do After Yesterday's Plunge
    Achilles Research Sat, Apr. 12 81 Comments

    Summary

    • J.C. Penney might have more downside potential in the short term.
    • However, long-term investors are looking at substantially higher share prices.
    • Further consolidation offers a strong contrarian buying opportunity.
  • J.C. Penney: Will The Turnaround Continue?
    Mitu Anand Wed, Apr. 9 38 Comments

    Summary

    • J.C. Penney has a huge debt burden and its cash position is weak.
    • Penney needs to make continuous improvements in its bottom line to stay afloat.
    • Penney seems to be making the right moves, and its recent performance suggests that the turnaround strategy is working.
    • Closure of underperforming stores and the addition of private-label brands should assist Penney’s long-term growth.
  • J.C. Penney: The Illusion Of Cheapness
    Elephant Analytics Thu, Apr. 3 163 Comments

    Summary

    • J.C. Penney appears cheap historically, if you look at a stock chart. That does not account for added shares or added debt.
    • J.C. Penney's current stock price is equivalent to when it traded in the $20s before.
    • Department store valuations have generally only increased in the last three years for companies that have strengthened financially.
    • Using J.C. Penney's 2011 EV/EBITDA multiple means that it will need to grow at 5%+ for four to five years and attain 38% gross margin to justify a $9 price.
  • J.C. Penney: Time To Buy The Spectacular Turnaround
    Renu Singh Tue, Apr. 1 43 Comments

    Summary

    • J.C. Penney’s solid turnaround strategies have resulted in noticeable improvements in the business.
    • Penney is focusing on pushing forth its omni-channel strategies and online growth, and this should lead to long-term improvements.
    • Penney has also been focusing on bringing back its private-label brands as it looks to propel growth.
  • J.C. Penney: The Dividend Isn't Coming Back Anytime Soon

    Summary

    • J.C. Penney, which had paid out a dividend in every year up until 2013, shows no signs of offering investors any kind of dividend recovery.
    • The company has $5.6 billion worth of debt, is diluting shareholders and has lowered capital investments to less than $300 million.
    • The gross margins are hovering at around 30%, well below the company's figures before the financial crisis.
  • J.C. Penney: Walking The Liquidity Tightrope
    Elephant Analytics Wed, Mar. 26 63 Comments

    Summary

    • Q4 SG&A drop was probably mostly due to timing and accrual reversals.
    • If J.C. Penney meets or exceeds guidance, bonus payments and merit increases will affect future SG&A.
    • J.C. Penney is likely looking at three-plus years of tight liquidity conditions if it doesn't do an equity offering.
  • J.C. Penney And The Emperor's New Clothes
    Retail Maven Mon, Mar. 24 96 Comments

    Summary

    • Financial professionals and investors recently declared, "J.C. Penney has finally turned the corner."
    • There is little evidence that any large changes have been made in J.C. Penney's operations since those of former CEO, Ron Johnson, have been reversed.
    • Interest in J.C. Penney and its proprietary brands seems to be declining on the Internet.
    • J.C. Penney is experiencing difficulties with unreal pricing, website configuration and customer complaints.
  • J.C. Penney: Back By Popular Demand
    Dante's Investing Ideas Fri, Mar. 21 86 Comments

    Summary

    • JCP stabilized in Q3.
    • JCP started to grow again in Q4.
    • JCP will show the trajectory of its turnaround in the coming quarters, which will return EBITDA to the $1-$2 billion range and get the stock north of $20.
    • Game, set and match for the bulls.
  • J.C. Penney Is A Natural Comeback Story
    Corey Sommers Sat, Mar. 15 105 Comments

    Summary

    • JCP stock is behaving exceedingly well of late.
    • To survive, the company must address four key success factors, but they're not all weighted equally.
    • Long-term company survival prospects and share price action may be disconnected for now.
  • J.C. Penney Must Exceed Guidance To Provide Long-Term Value For Bulls
    Elephant Analytics Sat, Mar. 15 67 Comments

    Summary

    • The high end of J.C. Penney's guidance makes it worth around $8 based on historical valuation multiples.
    • To be worth more than $8, J.C. Penney needs to exceed sales guidance and hit the top end of its gross margin and SG&A reduction targets.
    • This results in the risk/reward ratio tilting against the bulls at J.C. Penney's current price.
    • J.C. Penney needs to either achieve bubble valuations or significantly exceed guidance for long-term upside above the $8 to $9 range it currently is trading at.
  • J.C. Penney's Archaic, Mesozoic Era Home Goods Store Is Back. Ugh.
    Quoth the Raven Thu, Mar. 13 47 Comments

    Summary

    • JCP's home goods stores were old and stale in both consumers and brands.
    • JCP is banking on bringing home goods back to catalyze in store sales.
    • With competition like Amazon capitalizing on ease of access and frugality, home goods will likely not be a positive catalyst for JCP.
  • Can J.C. Penney Survive?
    Wealth Concepts Wed, Mar. 12 26 Comments

    Summary

    • Despite recent cutbacks and success during the holiday season, investors seem bearish on J.C. Penney.
    • What is the company's vision for the future, given its recent liquidity and dilution?
    • Can J.C. Penney continue to compete with giants such as Macy's and Costco?
  • J.C. Penney: A Common Sense Approach To Stability
    Retail Maven Tue, Mar. 11 100 Comments

    Summary

    • J.C. Penney management has identified its problems, but has not attempted to solve them.
    • Analysts and shareholders speak about J.C. Penney's difficulties but do not attempt to suggest remediation.
    • J.C. Penney requires a revision of merchandise offerings, upgraded quality and style, that will distinguish it from competition such as Kohl's, Macys and TJX stores.
    • J.C. Penney requires talented retail management in order to exit its declining path. The question that evades answer is: Where to find suitable people to fill this role?
  • Correcting Some Misperceptions Regarding J.C. Penney's Liquidity And Q4 Earnings

    Summary

    • The $650MM revolver draw will not cause JCP liquidity concerns in 2014, absent a revolver default or borrowing base imbalance.
    • The "Borrowing Maturity Date" for the $650MM revolver draw is different than the "Maturity Date" for the entire revolver.
    • JCP's adjusted EPS numbers for Q4 2013 and FY 2013 did beat analysts' estimates and conformed to "industry standards."
  • J.C. Penney: Soaring Again - Thank You, Citigroup
    Achilles Research Tue, Mar. 11 19 Comments

    Summary

    • J.C. Penney just received a major, game-changing upgrade from Citigroup.
    • J.C. Penney has compelling long-term turnaround value.
    • Citigroup's investor update serves to redefine investor perceptions.
  • Ron Johnson's Legacy May End Up Saving J.C. Penney
    Corey Sommers Mon, Mar. 10 97 Comments

    Summary

    • Two of Ron Johnson's key strategic decisions may end up helping to save J. C. Penney.
    • The short squeeze in JCP stock may be over for now.
    • J. C. Penney is positioned to show better results, but it has to do so very soon.
  • Back To Reality: No, J.C. Penney Did Not Beat Earnings (In Fact It Has New Problems)

    Summary

    • Using industry-standard measures, J.C. Penney's EPS for 2014 was (-$6.30), at the low end of analyst estimates.
    • As predicted, J.C. Penney is selling non-operating assets and trying to exercise the accordion in its revolver so it can borrow enough to survive 2014.
    • The only natural explanation for J.C. Penney's reduction in SG&A and capex below prior guidance is that the company is allowing its facilities to decline.
  • A Few More Reasons Why I Am Bullish On J.C. Penney
    Adnan Riaz Thu, Mar. 6 25 Comments

    Summary

    • Reinstatement of private brands will improve gross margins and drive consumers back into stores.
    • Financial position is improving, including improving liquidity ratios and cash figure.
    • Reduction in capital expenditure and selling and administrative expense will further strengthen its financials.
JCP vs. ETF Alternatives
Company Description

J.C. Penney Co Inc is engaged in selling merchandise and services to consumers through its department stores and through its website jcp.com. It mainly offers apparel, footwear, accessories, and fine and fashion jewelry.

Sector: Services
Country: United States