Acquires 160 retail locations and 6 warehouse distribution facilities from J.C. Penney. Facilitates J.C. Penney's Chapter 11 restructuring through this asset acquisition. Now — the numbers.
This is an established company with proven profits.
An average decline of 9% a year over the last 4 years — the most striking risk in this picture.
The market pays 17.2× for every dollar of annual profit — around what a business like this usually costs.
No analyst target is on record for this company.
Executive selling isn’t always bad news; people sell for personal reasons too. Still, the thin buying side is worth noting.
The stock trades 24% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 45% — still a thick cushion, though costs have been eating into it lately.
It pays out $1.17 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 9% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
Over the last 12 months, executives reported 25 sells against just 0 buys. Not an alarm bell by itself, but a number worth watching.
We grade companies — revenue, margins, balance sheets. This is a fund, so there is no report card to give. That is not a low grade; it is a different kind of thing.
One-line summary: a basket, not a business. Judge it by what it holds.