JPMORGAN CHASE & CO (JPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JPM - US46625H1005 - Common Stock
297.72 USD
-5.91 (-1.95%)
297.51 USD
-0.21 (-0.07%)
Taking everything into account, JPM scores 3 out of 10 in our fundamental rating. JPM was compared to 383 industry peers in the Banks industry. There are concerns on the financial health of JPM while its profitability can be described as average. JPM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- JPM had positive earnings in the past year.
- JPM had a negative operating cash flow in the past year.
- Each year in the past 5 years JPM has been profitable.
- The reported operating cash flow has been mixed in the past 5 years: JPM reported negative operating cash flow in multiple years.
1.2 Ratios
- With a decent Return On Assets value of 1.24%, JPM is doing good in the industry, outperforming 79.63% of the companies in the same industry.
- With an excellent Return On Equity value of 15.73%, JPM belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 15.73% | ||
| ROIC | N/A |
ROA(3y)1.3%
ROA(5y)1.23%
ROE(3y)15.47%
ROE(5y)14.9%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- JPM's Profit Margin of 31.58% is amongst the best of the industry. JPM outperforms 84.07% of its industry peers.
- JPM's Profit Margin has improved in the last couple of years.
- JPM does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 31.58% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.05%
PM growth 5Y5.96%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- JPM does not have a ROIC to compare to the WACC, probably because it is not profitable.
- JPM has less shares outstanding than it did 1 year ago.
- JPM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, JPM has a worse debt to assets ratio.
2.2 Solvency
- JPM has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external financing.
- JPM has a worse Debt to Equity ratio (2.89) than 92.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.51%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.81% over the past year.
- The Earnings Per Share has been growing by 17.86% on average over the past years. This is quite good.
- Looking at the last year, JPM shows a small growth in Revenue. The Revenue has grown by 2.75% in the last year.
- JPM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.75% yearly.
EPS 1Y (TTM)12.81%
EPS 3Y17.48%
EPS 5Y17.86%
EPS Q2Q%8.73%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y12.34%
Revenue growth 5Y8.75%
Sales Q2Q%6.93%
3.2 Future
- The Earnings Per Share is expected to grow by 6.84% on average over the next years.
- Based on estimates for the next years, JPM will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y7.21%
EPS Next 2Y7.43%
EPS Next 3Y8.72%
EPS Next 5Y6.84%
Revenue Next Year4.4%
Revenue Next 2Y4.42%
Revenue Next 3Y2.9%
Revenue Next 5Y3.27%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.76 indicates a correct valuation of JPM.
- Based on the Price/Earnings ratio, JPM is valued a bit more expensive than the industry average as 65.54% of the companies are valued more cheaply.
- JPM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- JPM is valuated correctly with a Price/Forward Earnings ratio of 13.77.
- Based on the Price/Forward Earnings ratio, JPM is valued a bit more expensive than the industry average as 70.23% of the companies are valued more cheaply.
- JPM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JPM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.05
PEG (5Y)0.83
EPS Next 2Y7.43%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.98%, JPM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.84, JPM is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, JPM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
- On average, the dividend of JPM grows each year by 6.07%, which is quite nice.
- JPM has paid a dividend for at least 10 years, which is a reliable track record.
- JPM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.07%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- 28.36% of the earnings are spent on dividend by JPM. This is a low number and sustainable payout ratio.
- The dividend of JPM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.36%
EPS Next 2Y7.43%
EPS Next 3Y8.72%
JPMORGAN CHASE & CO / JPM FAQ
What is the fundamental rating for JPM stock?
ChartMill assigns a fundamental rating of 3 / 10 to JPM.
What is the valuation status for JPM stock?
ChartMill assigns a valuation rating of 2 / 10 to JPMORGAN CHASE & CO (JPM). This can be considered as Overvalued.
Can you provide the profitability details for JPMORGAN CHASE & CO?
JPMORGAN CHASE & CO (JPM) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for JPM stock?
The Price/Earnings (PE) ratio for JPMORGAN CHASE & CO (JPM) is 14.76 and the Price/Book (PB) ratio is 2.27.
Can you provide the expected EPS growth for JPM stock?
The Earnings per Share (EPS) of JPMORGAN CHASE & CO (JPM) is expected to grow by 7.21% in the next year.