Brooks Competition JC Penney. Team #4: Xin Zhang Keat Ian Yeoh Jenn Yang Lee. Recommendations. Purchase JC Penney stocks. Capital Budgeting. Assumptions. Ratios Depreciation Inflation rate Sales growth rate. Capital Budgeting. Operating cash flow. Net working capital
Keat Ian Yeoh
Jenn Yang Lee
younger population in America is growing into young adults and teenagers.
Unemployment rate has been decreasing since 2009.
Competitors seem to outperform JCP in all the financial ratio conducted
Kohl’s is the only other competitor who owns slightly more stores than JCP
The number of stores JCP owns
Prototype store in Texas that recorded a sales per gross square foot of six hundred dollars
Currently unable to generate enough sales
Although JCP has not been generating enough profit for the last three years, we think that is largely due to the change in management and remodeling project. Therefore, we suggest a “Buy” position on JCP.