JC Penney Profitability Analysis

Based on the key profitability measurements obtained from JC Penney's financial statements, J C Penney may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess JC Penney's ability to earn profits and add value for shareholders.
For JC Penney profitability analysis, we use financial ratios and fundamental drivers that measure the ability of JC Penney to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well J C Penney utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between JC Penney's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of J C Penney over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Please note, there is a significant difference between JC Penney's value and its price as these two are different measures arrived at by different means. Investors typically determine if JC Penney is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JC Penney's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

J C Penney Z Score vs. Shares Owned By Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining JC Penney's current stock value. Our valuation model uses many indicators to compare JC Penney value to that of its competitors to determine the firm's financial worth.
J C Penney is currently regarded as number one stock in shares owned by insiders category among related companies. It is currently regarded as number one stock in z score category among related companies totaling about  0.28  of Z Score per Shares Owned By Insiders. The ratio of Shares Owned By Insiders to Z Score for J C Penney is roughly  3.63 . Comparative valuation analysis is a catch-all model that can be used if you cannot value JC Penney by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JC Penney's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the JC Penney's earnings, one of the primary drivers of an investment's value.

JCP Z Score vs. Shares Owned By Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

JC Penney

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
3.63 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

JC Penney

Z Score

 = 

Sum Of

5 Factors

 = 
1.0
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

JCP Z Score Comparison

JC Penney is currently under evaluation in z score category among related companies.

JC Penney Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in JC Penney, profitability is also one of the essential criteria for including it into their portfolios because, without profit, JC Penney will eventually generate negative long term returns. The profitability progress is the general direction of JC Penney's change in net profit over the period of time. It can combine multiple indicators of JC Penney, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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.

JCP Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on JC Penney. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of JC Penney position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the JC Penney's important profitability drivers and their relationship over time.

Use JC Penney in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if JC Penney position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JC Penney will appreciate offsetting losses from the drop in the long position's value.

JC Penney Pair Trading

J C Penney Pair Trading Analysis

The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your JC Penney position

In addition to having JC Penney in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Hedge Favorites Thematic Idea Now

Hedge Favorites
Hedge Favorites Theme
Hedge Funds pool capital from accredited individuals or institutional investors and invest in a variety of assets, often with complex portfolio-construction and risk-management techniques. The Hedge Favorites theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hedge Favorites Theme or any other thematic opportunities.
View All  Next Launch
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Note that the J C Penney information on this page should be used as a complementary analysis to other JC Penney's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Consideration for investing in JCP Stock

If you are still planning to invest in J C Penney check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the JC Penney's history and understand the potential risks before investing.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
CEOs Directory
Screen CEOs from public companies around the world
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Stocks Directory
Find actively traded stocks across global markets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets