Home / Business / Critical Profitability Ratio Analysis under Limelight: J. C. Penney Company (NYSE:JCP), Scorpio Tankers (NYSE:STNG)

Critical Profitability Ratio Analysis under Limelight: J. C. Penney Company (NYSE:JCP), Scorpio Tankers (NYSE:STNG)

  1. C. Penney Company, Inc. (NYSE:JCP) presented as an active mover, shares an ascending -2.24% to traded at $8.73 in most recent trading session. The firm has floated short ratio of 25.90%, hold to candle to sentiment indicator of Short Ratio, its stand at 5.45. One stock that might be an intriguing choice for investors right now is J. C. Penney Firm, Inc. JCP. This is because this security in the Retail, Regional Departmental Stores space is seeing solid earnings estimate revision activity, and is in great firm from a Zacks Industry Rank perspective.

This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a section that are boosting securities across the board. This is arguably taking place in the Retail,  Regional Departmental Stores space as it presently has a Zacks Industry Rank of 7 out of over 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other sections out there.

Efficiency or profitability analysis gives an appropriate idea for investment decision; JCP attains returns on investment ratio of -1.80% percent, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at negative -2.60% percent, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 0.60% percent and 36.00% percent respectively.

Turns back to returns ratios, returns on equity stands at -25.00% percent. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was -6.83% and monthly performance was -8.87%. The stock price of JCP is moving down from its 20 days moving average with -7.91% and isolated negatively from 50 days moving average with -10.10%.

Following analysis criteria, Scorpio Tankers Inc. (NYSE:STNG) attains noticeable attention, it decreasing -3.96% to traded at $4.37. STNG attains analyst recommendation of 2.10 on scale of 1-5 with week’s performance of -12.07%.

The firm has noticeable returns on equity ratio of 10.70%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 8.90%. To see the other side of depiction, profit margin of STNG stands at positive 21.30%; that indicates a firm actually every dollar of sales keeps in earnings. The 4.40% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of STNG, it holds price to book ratio of 0.50 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 8.88, and price to earnings ratio calculated as 5.64. STNG is presenting price to cash flow of 4.19 and free cash flow concluded as 2.83.


About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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