Department stores have underperformed in the last few quarters, making the 2017 holiday season that much more important in the brick-and-mortar realm with eCommerce on the rise worldwide. J. C. Penney Company, Inc.'s (NYSE: JCP) FRISK® score recently slid to the lowest rating of "1," which ranks significantly below the broader department and discount store industry:
This High Risk Report will address key weaknesses related to J. C. Penney, in addition to unique aspects of the CreditRiskMonitor service. For instance, J. C. Penney's trailing 12-month net profit margin and debt-to-equity are both in the bottom quartile of its industry’s peer group.
About High Risk Reports
Our High Risk Reports feature companies that are exhibiting a significantly high level of financial distress, as indicated by our proprietary FRISK® score.
The reports highlight the factors that have pushed a company's score lower on the "1" (worst) to "10" (best) FRISK® score, which is 96% accurate in predicting bankruptcy over a 12-month period. The High Risk Reports also includes analysis on financial indicators such as the company’s DBT index, stock performance, financial ratios and how it is performing relative to its industry peers.
The ultimate goal of the High Risk Report series is two-part: provide an early warning for those doing business with an increasingly distressed company and inform of the many signals that should be examined when assessing financial risks.