J. C. Penney Company, Inc. Equity Valuation and Analysis As of ...

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SUMMARY OUTPUT6 Month Regression72 MonthRegression StatisticsMultiple R 0.44952832R Square 0.20207571Adjusted R Square 0.190676792Standard Error 0.085208275Observations 72ANOVAdf SS MS F Significance FRegression 1 0.128710511 0.128710511 17.72762139 7.45559E-05Residual 70 0.508231511 0.00726045Total 71 0.636942022Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.024086144 0.010043978 2.398068263 0.019151538 0.004054063 0.044118226 0.004054063 0.044118226X Variable 1 1.160350997 0.275590438 4.210418197 7.45559E-05 0.610703206 1.709998788 0.610703206 1.709998788SUMMARY OUTPUT60 MonthRegression StatisticsMultiple R 0.452575365R Square 0.204824461Adjusted R Square 0.191114538Standard Error 0.077793022Observations 60ANOVAdf SS MS F Significance FRegression 1 0.09041242 0.09041242 14.93986943 0.000282764Residual 58 0.351001752 0.006051754Total 59 0.441414171Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.022669716 0.010097087 2.24517387 0.028584318 0.002458201 0.042881232 0.002458201 0.042881232X Variable 1 1.130202094 0.292403594 3.865212728 0.000282764 0.544892712 1.715511476 0.544892712 1.715511476SUMMARY OUTPUT48 MonthRegression StatisticsMultiple R 0.216486835R Square 0.04686655Adjusted R Square 0.026146257Standard Error 0.065955108Observations 48ANOVAdf SS MS F Significance FRegression 1 0.009839295 0.009839295 2.261867207 0.139429522Residual 46 0.200103509 0.004350076Total 47 0.209942804Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.030639424 0.010091375 3.036199165 0.003936725 0.01032654 0.050952308 0.01032654 0.050952308X Variable 1 0.66096566 0.439486303 1.503950533 0.139429522 -0.223674372 1.545605692 -0.223674372 1.545605692SUMMARY OUTPUT36 MonthRegression StatisticsMultiple R 0.197246312R Square 0.038906107Adjusted R Square 0.01063864Standard Error 0.063997849Observations 36ANOVAdf SS MS F Significance FRegression 1 0.005637177 0.005637177 1.376356322 0.248876419Residual 34 0.139254639 0.004095725Total 35 0.144891816Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.023524249 0.010999319 2.138700426 0.03972785 0.001170943 0.045877555 0.001170943 0.045877555X Variable 1 0.621523842 0.529776088 1.173182135 0.248876419 -0.455110698 1.698158383 -0.455110698 1.698158383135
SUMMARY OUTPUT6 Month Regression24 MonthRegression StatisticsMultiple R 0.277563315R Square 0.077041394Adjusted R Square 0.03508873Standard Error 0.058483448Observations 24ANOVAdf SS MS F Significance FRegression 1 0.006281025 0.006281025 1.836388596 0.189126727Residual 22 0.075246902 0.003420314Total 23 0.081527927Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.018203442 0.012677335 1.435904478 0.165096959 -0.008087741 0.044494626 -0.008087741 0.044494626X Variable 1 0.869137911 0.641366689 1.355134162 0.189126727 -0.460975187 2.199251009 -0.460975187 2.199251009136
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J. C. Penney Company, Inc. Equity V
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Industry AnalysisIn 1902, James Cas
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Financial Analysis, Forecast Financ
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Business & Industry AnalysisCompany
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Industry OverviewThe retail industr
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Five Forces ModelThe Five Forces Mo
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ConcentrationThe level of concentra
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capable of offering lower prices th
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If a firm wishes to shut down, it m
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Legal BarriersMany industries have
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These costs include issues such as
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Bargaining Power of SuppliersThe de
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The relative bargaining power of th
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Competitive StrategiesIn order to a
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Department stores have to focus on
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The Big PicturePlayers in this indu
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Lower Input CostsJ. C. Penney is at
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in the last five years. This trend
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convenient for different consumers
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transactions have been improperly s
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Penney does state in its annual rep
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Operating and Capital LeasesOperati
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Potential Accounting FlexibilityA f
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truly are. J. C. Penney, however, h
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Qualitative Analysis of DisclosureT
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we can see why targeting the strong
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manipulation diagnostics for J. C.
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Net Sales/Net Accounts ReceivableNe
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Net Sales/Unearned Revenue1200Net S
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Below is a chart of sales manipulat
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As for the industry, all the compan
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Pension Expense/SG&APension Expense
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Below is a chart of all expense man
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discount rates in respect to pensio
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Financial Analysis, Forecast Financ
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paying off their short-term obligat
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ecause many firms in this segment o
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Penney’s inventory turnover is in
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ConclusionAnalysis through liquidit
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operating efficiency because the fi
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Return on AssetsReturn on Assets0.1
Page 86 and 87: Capital Structure AnalysisWhen look
Page 88 and 89: however, in 2006, J. C. Penney show
Page 90 and 91: Sustainable Growth RateSustainable
Page 92 and 93: average of only years 2005 and 2006
Page 94 and 95: (reported in millions)Annual Income
Page 96 and 97: We then began to look at the equity
Page 98 and 99: Common Size Balance Sheet 2002 2003
Page 100 and 101: (numbers in millions)Statement of C
Page 102 and 103: ConclusionOverall, it appears that
Page 104 and 105: Inc. We set these averages equal to
Page 106 and 107: Price to BookPPS BPS P/B IndustryAv
Page 108 and 109: Price Earnings GrowthPPS EPS PEG In
Page 110 and 111: y J. C. Penney’s EBITDA. Then we
Page 112 and 113: Regression Analysis3 Month Rate 72
Page 114 and 115: Intrinsic ValuationsIntrinsic valua
Page 116 and 117: amount in the eye’s of shareholde
Page 118 and 119: This particular stock price in our
Page 120 and 121: esidual income or converge. Future
Page 122 and 123: To find our long run return on equi
Page 124 and 125: Sensitivity AnalysisGrowth Rates0 -
Page 126 and 127: for this large difference between s
Page 128 and 129: Analyst RecommendationAfter careful
Page 130 and 131: AppendixLiquidity RatiosCurrent rat
Page 132 and 133: Capital Structure RatioDebt to equi
Page 134 and 135: SUMMARY OUTPUT3 Month Regression72
Page 138 and 139: SUMMARY OUTPUT2 Year Regression72 M
Page 140 and 141: SUMMARY OUTPUT5 Year Regression72 M
Page 142 and 143: SUMMARY OUTPUT10 Year Regression72
Page 144 and 145: Cost of Equity 0.1361Estimated Pric
Page 146 and 147: Discount Dividends Model0 1 2 3 4 5
Page 148 and 149: Residual Income Model WACC(AT) 0.07
Page 150 and 151: Z-Score AnalysisZ-Score=1.21.43.320
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