Should I Invest in Jc Penney
Should I Invest in JC Penney
Nadia shelchkov
Wilmington University
Abstract
This paper explains and explores the financial statements of JC Penney and its four top competitors: Kohl 's, TJX, Wal-Mart, and Target. It analyzes their net profit margin compared with industry, return on assets, return on investment, return on equity, price-earnings ratio, inventory turnover, Beta, etc. and then compares these variables to the other stores. This information gets analyzed from an investors point of view and also states my opinion on investments and which company I would invest in.
Should I Invest in JC Penney JC Penney was founded in 1902 by James Cash Penney who wanted to build a store based on what he referred to as the "Golden Rule": treating customers "Fair and Square". After 110 years JC Penney is restructuring itself because it feels that it has lost some of its values in their pricing and endless amount of promotions and sales. They are focusing on remodeling their seven main values: personality, price, promotion, people, place, product and presentation. JC Penney has a new management staff composed of new and old leaders. They now have only 12 sales events each year, one for every month, unlike the 590 they used to have before. JC Penney is changing the way they price their merchandise, choosing to know put a value that customers are willing to pay for and placing their prices into three different categories: everyday, month long, and best. While JC Penney 's stocks have been dropping in price, they hope that with their new policy and perspective on things that this will turn around and that JC Penney will once again become "America 's Favorite Store".
JC Penney and its competitors financial ratios at 10/2012 JC Penney Kohl 's TJX Wal-Mart Target
Net Profit 2012 -3.60 5.60 7.10 3.70 4.20
Margin 5 Yr Avg 2.40 6.00 5.50 3.60 4.00
Industry 5 Yr Avg 0.90 0.90 0.90 3.40 3.40
Return on 2012 -8.10 10.10 41.90 14.90
Nadia shelchkov
Wilmington University
Abstract
This paper explains and explores the financial statements of JC Penney and its four top competitors: Kohl 's, TJX, Wal-Mart, and Target. It analyzes their net profit margin compared with industry, return on assets, return on investment, return on equity, price-earnings ratio, inventory turnover, Beta, etc. and then compares these variables to the other stores. This information gets analyzed from an investors point of view and also states my opinion on investments and which company I would invest in.
Should I Invest in JC Penney JC Penney was founded in 1902 by James Cash Penney who wanted to build a store based on what he referred to as the "Golden Rule": treating customers "Fair and Square". After 110 years JC Penney is restructuring itself because it feels that it has lost some of its values in their pricing and endless amount of promotions and sales. They are focusing on remodeling their seven main values: personality, price, promotion, people, place, product and presentation. JC Penney has a new management staff composed of new and old leaders. They now have only 12 sales events each year, one for every month, unlike the 590 they used to have before. JC Penney is changing the way they price their merchandise, choosing to know put a value that customers are willing to pay for and placing their prices into three different categories: everyday, month long, and best. While JC Penney 's stocks have been dropping in price, they hope that with their new policy and perspective on things that this will turn around and that JC Penney will once again become "America 's Favorite Store".
JC Penney and its competitors financial ratios at 10/2012 JC Penney Kohl 's TJX Wal-Mart Target
Net Profit 2012 -3.60 5.60 7.10 3.70 4.20
Margin 5 Yr Avg 2.40 6.00 5.50 3.60 4.00
Industry 5 Yr Avg 0.90 0.90 0.90 3.40 3.40
Return on 2012 -8.10 10.10 41.90 14.90
References: About Us - History. (n.d.). Welcome to The TJX Companies, Inc.. Retrieved February 10, 2013, from http://www.tjx.com/about_history.asp J. C. PENNEY COMPANY, INC. REPORTS 2011 FOURTH QUARTER AND FULL-YEAR FINANCIAL RESULTS. (n.d.). jcpenney Media Room. Retrieved February 10, 2013, from http://www.jcpmediaroom.com/posts/37/J.-C.-PENNEY-COMPANY,-INC.-REPORTS-2011-FOURTH-QUARTER-AND-FULL-YEAR-FINANCIAL-RESULTS J.C. Penney Company, Inc. Holding Company Competitors - NASDAQ.com. (n.d.). NASDAQ Stock Market - Stock Quotes - Stock Exchange News - NASDAQ.com. Retrieved February 10, 2013, from http://www.nasdaq.com/symbol/jcp/competitors Kohl 's Corp Quote Page (KSS). (n.d.). Saving. Spending. Investing. Planning. Everything you need for a lifetime of financial decisions. -- DailyFinance. Retrieved February 10, 2013, from http://www.dailyfinance.com/quote/nyse/kohls-corp/kss/financial-ratios Ross, Stephen A., Randolph W. Westerfield, and Branford D. Jordan. Fundamentals of Corporate Finance. Boston: McGraw-Hill Learning Solutions, 2012. Print. Summary annual report. (n.d.). J.C. Penney Company, Inc . Retrieved February 1, 2013, from "Summary annual report." J.C.Penney Company, Inc 2011. N.p., n.d. Web. 1 Feb. 2013. . Summary annual report. (n.d.). J.C.Penney Company, Inc 2011. Retrieved February 1, 2013, from media.corporate-ir.net/media_files/IROL/70/70528/reports/JCP_2011IAR/HTML1/jc_penney-ar2011_0004-twopage_large.htm YCharts - Stock Charts, Stock Ratings & Economic Indicators. (n.d.). YCharts - Stock Charts, Stock Ratings & Economic Indicators. Retrieved February 10, 2013, from http://ycharts.com/