JC Penney Total Asset vs. Retained Earnings
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 Retained Earnings vs. Total Asset 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 total asset category among related companies. It is currently regarded as number one stock in retained earnings 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 Retained Earnings vs. Total Asset
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
JC Penney |
| = | 9.44 B |
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
JC Penney |
| = | (3.24 B) |
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
JCP Retained Earnings Comparison
JC Penney is currently under evaluation in retained earnings 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 Deere could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Deere 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 Deere - 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 Deere Company to buy it.
The correlation of Deere 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 Deere moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Deere Company 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 Deere 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 Healthcare Thematic Idea Now
Healthcare
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 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 Healthcare Theme or any other thematic opportunities.
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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.
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