JCG Investment Analysis Report & Stock Research, J.Crew Group, Inc.

J.Crew Group, Incorporated (JCG)

JCG Stock Report

2-Year Price History

View Larger JCG Chart
NYSE:JCG
$45.20
(3/12 2:27PM)
+0.1%
Open$45.52 Mkt Cap$2.9 Billion
High$45.55 52Wk High$47.67
Low$44.63 52Wk Low$12.42
Volume1.1 Million Avg Vol 10D2.5 Million

Ockham's Rating/Recommendation Summary

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JCG Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 6 years. For, JCG the high and low end of the Price to Sales per share ratios are 2.50x and 0.91x respectively.

Notice that JCG's current Price to Sales per share ratio is 1.95x, which is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective JCG does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 14% (the historical average) then we would become more positive on this stock.

JCG Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. JCG is above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for JCG, the current level of Cash Earnings compared to its historical levels helps identify where JCG is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 30.98 and a historical low Cash Earnings per share ratio of 10.89, an investor can relate where value becomes optimal.

Given this range of ratios per share, JCG at its current price of $45.61 and a Price to Cash Earnings ratio of 23.27 is 11% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about JCG because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 20.94 would significantly improve our outlook for JCG given the current profit levels.

JCG Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard JCG as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.

Peer Comparison

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J.Crew Group, Inc. Industry Grouping

(3/11/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including JCG) 16.25 4.13 » 37.73 0.96 0.27 » 2.64 8.01% 22.07%
*10 year range does not include current year values
Big Lots, Inc. BIG $3.0 Billion $35.88 12.15 4.27 » 46.28 0.64 0.22 » 0.68 2.16% 11.52%
J.Crew Group, Inc. JCG $2.9 Billion $45.15 23.27 4.96 » 31.25 1.95 0.35 » 2.64 n/a 295.49%
RadioShack Corp. RSH $2.9 Billion $22.76 8.73 2.62 » 36.94 0.64 0.19 » 2.09 -2.45% 26.18%
Aeropostale, Inc. ARO $2.7 Billion $27.05 9.91 4.25 » 42.26 1.20 0.45 » 2.84 20.74% 41.32%
Chico's FAS, Inc. CHS $2.7 Billion $14.92 24.25 6.38 » 36.85 1.51 0.38 » 5.99 15.54% 16.04%
Williams-Sonoma Inc. WSM $2.6 Billion $24.12 26.19 3.12 » 26.31 0.82 0.14 » 1.62 4.06% 15.32%
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9:32A, Nov. 24,2009 JCG $41.02 J.Crew Group, Inc.
Squawk On The Street

J.Crew Group, Incorporated Gets First RazorWire Capture from Squawk On The Street

This stock receives very little attention in the financial media; in fact, this is the first time RazorWire has captured news on JCG.

We noticed recently that in comparison to all other stocks we analyze in the news; JCG has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. J.Crew Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… CREW, momentum ahead of that as that stock open opened higher as well. To bertha coombs. > > dell the biggest drag, off more than 1. …”

9:03A, Nov. 24,2009 JCG $41.00 J.Crew Group, Inc.
Squawk On The Street

J.Crew Group, Incorporated Gets First RazorWire Capture from Squawk On The Street

Never before have we picked up a mention of J.Crew Group, Incorporated on RazorWire, which means that it must be making some waves to get some attention.

J.Crew Group, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; JCG has received less coverage from the financial media in business television and blogs.

“… Dsw up 7%. J. CREW reports their earns after the closing bell. Unite the pacific was downgrade at ubs. Kindred morgan upgraded at morgan keegan. …”

View All J.Crew Group, Inc. Stock News

Key Fundamentals

JCG - J.Crew Group, Incorporated Fundamentals
Price (3/12 2:27PM) $45.20
Volume (3/12 2:27PM) 1.1 Million
Last Close Price $45.15
10 Day Average Volume 2.5 Million
13 Week Price Range $37.01 - $47.67
52 Week Price Range $12.42 - $47.67
LTM Revenue $1.5 Billion
 
Shares Outstanding (01/2010) 63.6 Million
Market Capitalization $2.9 Billion
Shares Held By Institutions 66.3 Million
Institutional Holders 206
% Shares Held By Institutions %
Earnings Per Share (EPS) $1.91
P/E Ratio 23.60
Book Value Per Share $5.18
 
Gross Margin 42.90%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.51
Fiscal Year Ends January

About J.Crew Group, Inc.

J.Crew Group, Incorporated is considered to operate in the Services sector. They specifically operate in the Apparel Stores business segment contained within the Retail industry.

The Company offers complete assortments of women's, men's and children's apparel and accessories, including wedding and special occasion attire, weekend clothes, swimwear, loungewear, outerwear, shoes, bags, belts, hair accessories and jewelry.