JC Penney Earnings Per Share vs. Working Capital
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 May. Profitability indicators assess JC Penney's ability to earn profits and add value for shareholders.
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.
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.
JCP |
J C Penney Working Capital vs. Earnings Per Share 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 earnings per share category among related companies. It is currently regarded as number one stock in working capital category among related companies . 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 Working Capital vs. Earnings Per Share
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
JC Penney |
| = | (0.88) X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
JC Penney |
| = | 1.61 B |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
JCP Working Capital Comparison
JC Penney is currently under evaluation in working capital 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.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 Farming Thematic Idea Now
Farming
Companies producing farming products and providing services for farmers. The Farming theme has 40 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 Farming 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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.
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings 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 | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |