Jc Penney
JCPenney EQUITY RESEARCH
By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu
Prepared for ACC 645, Dr. Kaustav Sen
JCPenney EQUITY RESEARCH
By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu
Prepared for ACC 645, Dr. Kaustav Sen
Pace University
ACCT 645
Pace University
ACCT 645
Company Selected
JCPenney Company, Inc., a public traded company that has its common stocks traded on NYSE market under the ticker symbol “JCP”.
Overview of Retail Industry & Department Stores
The retail industry has always been a large portion of the U.S. economy. In 2012, the industry had nearly one million stores and accounted for four trillion dollars in revenue. An estimated two-thirds of the U.S. GDP comes from retail consumption. Therefore, the development and prosperity of the retail industry is a leading indicator of the United States’ economy. There are eight segments in the retail industry, which are apparel, catalog and mail order, department and discount, drugs, grocery, home improvement, specialty, and technology. Because of the big impact of the recession starting from 2008, all the stores in the segment of department and discount, which is where JCPenney is placed in the retail industry, had a combined annual revenue of merely $198 billion in last year. In addition, the growth rate of that has remained negative through out the past four years and is expected to continue to be negative in 2013.
Company Overview
JCPenney Company, Inc. is a chain of American mid-range department stores based in Plano, Texas. The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico. In addition to selling conventional merchandise, JCPenney stores often house several leased departments such as Sephora, Seattle 's Best Coffee, optical centers, portrait studios, and jewelry repair. SWOT Analysis | Strengths | Weaknesses | 1. Balanced Brand Portfolio 2. Wide product offerings 3. Multiple retail
By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu
Prepared for ACC 645, Dr. Kaustav Sen
JCPenney EQUITY RESEARCH
By: Hui An, Luo Zhang, Estefani Martinez, Feng Xiong, Xi Yang, Wei Liu
Prepared for ACC 645, Dr. Kaustav Sen
Pace University
ACCT 645
Pace University
ACCT 645
Company Selected
JCPenney Company, Inc., a public traded company that has its common stocks traded on NYSE market under the ticker symbol “JCP”.
Overview of Retail Industry & Department Stores
The retail industry has always been a large portion of the U.S. economy. In 2012, the industry had nearly one million stores and accounted for four trillion dollars in revenue. An estimated two-thirds of the U.S. GDP comes from retail consumption. Therefore, the development and prosperity of the retail industry is a leading indicator of the United States’ economy. There are eight segments in the retail industry, which are apparel, catalog and mail order, department and discount, drugs, grocery, home improvement, specialty, and technology. Because of the big impact of the recession starting from 2008, all the stores in the segment of department and discount, which is where JCPenney is placed in the retail industry, had a combined annual revenue of merely $198 billion in last year. In addition, the growth rate of that has remained negative through out the past four years and is expected to continue to be negative in 2013.
Company Overview
JCPenney Company, Inc. is a chain of American mid-range department stores based in Plano, Texas. The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico. In addition to selling conventional merchandise, JCPenney stores often house several leased departments such as Sephora, Seattle 's Best Coffee, optical centers, portrait studios, and jewelry repair. SWOT Analysis | Strengths | Weaknesses | 1. Balanced Brand Portfolio 2. Wide product offerings 3. Multiple retail
References: 1. Penman, S. H. (2010). Financial statement analysis and security valuation (4th ed.). New York: McGraw-Hill/Irwin. 2. J. C. Penney’s 10-K form of 2012 3. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. (n.d.). Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved April 27, 2013, from http://finance.yahoo.com 4. Department Stores in the US Market Research | IBISWorld. (n.d.). Market Research Reports & Analysis | IBISWorld US. Retrieved April 27, 2013, from http://www.ibisworld.com/industry/default.aspx?indid=1090 5. Category. (n.d.). Retail Industry Overview, Facts, Research, Statistics, Information, Jobs Data, Sales Figures & Trivia - Most Current U.S. Retail Industry Details 2011. Retail Industry - Retail Stores, Sales, Management, Marketing, Jobs, Companies, Trends and Analysis in the U.S. and Global Retail Industry. Retrieved April 27, 2013, from http://retailindustry.about.com/od/statisticsr 6. Valuing a company using the residual income method. (2011, July). Retrieved from http://www.investopedia.com/articles/fundamentalanalysis/11/residual-income-model.asp