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

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SUMMARY OUTPUT2 Year Regression72 MonthsRegression StatisticsMultiple R 0.448651013R Square 0.201287732Adjusted R Square 0.189877557Standard Error 0.085250338Observations 72ANOVAdf SS MS F Significance FRegression 1 0.128208615 0.128208615 17.64107275 7.73107E-05Residual 70 0.508733407 0.00726762Total 71 0.636942022Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.024517784 0.010047371 2.440218851 0.017213195 0.004478935 0.044556633 0.004478935 0.044556633X Variable 1 1.157461528 0.275577699 4.200127706 7.73107E-05 0.607839145 1.70708391 0.607839145 1.70708391SUMMARY OUTPUT60 MonthsRegression StatisticsMultiple R 0.450812936R Square 0.203232303Adjusted R Square 0.189494929Standard Error 0.077870865Observations 60ANOVAdf SS MS F Significance FRegression 1 0.089709619 0.089709619 14.79411578 0.000300674Residual 58 0.351704553 0.006063872Total 59 0.441414171Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.02301366 0.010098729 2.278866974 0.02637353 0.002798858 0.043228463 0.002798858 0.043228463X Variable 1 1.125169487 0.29253204 3.846311972 0.000300674 0.539602993 1.710735981 0.539602993 1.710735981SUMMARY OUTPUT48 MonthsRegression StatisticsMultiple R 0.213172341R Square 0.045442447Adjusted R Square 0.024691196Standard Error 0.066004362Observations 48ANOVAdf SS MS F Significance FRegression 1 0.009540315 0.009540315 2.189865411 0.145738076Residual 46 0.20040249 0.004356576Total 47 0.209942804Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.030878751 0.01006307 3.068521928 0.003600327 0.010622842 0.051134659 0.010622842 0.051134659X Variable 1 0.650910714 0.439858216 1.479819385 0.145738076 -0.234477939 1.536299367 -0.234477939 1.536299367SUMMARY OUTPUT36 MonthsRegression StatisticsMultiple R 0.19563028R Square 0.038271206Adjusted R Square 0.009985066Standard Error 0.064018984Observations 36ANOVAdf SS MS F Significance FRegression 1 0.005545185 0.005545185 1.353002041 0.252852813Residual 34 0.139346631 0.00409843Total 35 0.144891816Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.023630228 0.010986326 2.150876268 0.03868112 0.001303327 0.045957128 0.001303327 0.045957128X Variable 1 0.615716993 0.529336588 1.163186159 0.252852813 -0.460024376 1.691458361 -0.460024376 1.691458361137
SUMMARY OUTPUT2 Year Regression24 MonthsRegression StatisticsMultiple R 0.27764037R Square 0.077084175Adjusted R Square 0.035133456Standard Error 0.058482093Observations 24ANOVAdf SS MS F Significance FRegression 1 0.006284513 0.006284513 1.837493524 0.188998865Residual 22 0.075243414 0.003420155Total 23 0.081527927Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%Intercept 0.018129626 0.012695068 1.428084255 0.167310758 -0.008198333 0.044457585 -0.008198333 0.044457585X Variable 1 0.869702617 0.641590417 1.355541782 0.188998865 -0.460874463 2.200279697 -0.460874463 2.200279697138
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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
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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 136 and 137: SUMMARY OUTPUT6 Month Regression72
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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