Shares of J. C. Penney Company, Inc. (NYSE:JCP) recorded -0.79% loss during trading session on February 11th, 2019. The script traded as low as $1.25 and last traded at $1.26. 5.15 million shares changed exchanged hands during trading, an increase of 47.16% from the 30-day average session volume of 9.75M shares. The firm had previously closed at $1.27. The company has $330.31M outstanding shares, price-to-earnings-growth ratio of 0.03 and a beta of 1.03. The company has a RSI of 45.25, ATR of 0.08 and a volatility of 5.51% this week. JCP has a 52 week low price of $0.92 and a 52 week high price of $4.75.
Investors have identified the tech company J. C. Penney Company, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 416.19M, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
J. C. Penney Company, Inc. (JCP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For JCP, the company has in raw cash 168 million on their books with 4.16 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 4.01 billion total, with 8.42 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
JCP were able to record 632 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 290 million. In cash movements, the company had a total of 311 million as operating cash flow.
Potential earnings growth for J. C. Penney Company, Inc. (JCP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, J. C. Penney Company, Inc. recorded a total of 2.73 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.06% coming in sequential stages and their sales for the third quarter reducing by -0.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.81 billion trying to sell their products during the last quarter, with the result yielding a gross income of 925 million. This allows shareholders to hold on to 330.31M with the revenue now reading -480 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.31 cents a share).
Is the stock of JCP attractive?
Having a look at the company’s valuation, the company is expected to record -0.71 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on JCP sounds very interesting.
0 out of 15 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on J. C. Penney Company, Inc. stock. 2 analysts has assigned a Sell rating on the JCP stock. The 12-month mean consensus price target for the company’s shares has been set at $1.40.