JPMORGAN CHASE & CO (JPM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JPM - US46625H1005 - Common Stock
300.67 USD
+2.95 (+0.99%)
JPM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. There are concerns on the financial health of JPM while its profitability can be described as average. While showing a medium growth rate, JPM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year JPM was profitable.
- 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
- Looking at the Return On Assets, with a value of 1.24%, JPM is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
- JPM has a better Return On Equity (15.73%) than 94.26% of its industry peers.
| 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
- Looking at the Profit Margin, with a value of 31.58%, JPM belongs to the top of the industry, outperforming 84.07% of the companies in the same industry.
- In the last couple of years the Profit Margin of JPM has grown nicely.
- The Operating Margin and Gross Margin are not available for JPM so they could not be analyzed.
| 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.
- JPM has a worse debt/assets ratio than last year.
2.2 Solvency
- A Debt/Equity ratio of 2.89 is on the high side and indicates that JPM has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.89, JPM is doing worse than 92.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.49%
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.
- JPM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.86% yearly.
- The Revenue has been growing slightly by 2.75% in the past year.
- Measured over the past years, JPM shows a quite strong growth in Revenue. The Revenue has been growing by 8.75% on average per year.
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
- JPM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.84% yearly.
- The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y7.21%
EPS Next 2Y7.43%
EPS Next 3Y8.72%
EPS Next 5Y6.84%
Revenue Next Year5.72%
Revenue Next 2Y4.63%
Revenue Next 3Y5.17%
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 14.91 indicates a correct valuation of JPM.
- JPM's Price/Earnings ratio is a bit more expensive when compared to the industry. JPM is more expensive than 66.06% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, JPM is valued a bit cheaper.
- A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of JPM.
- Based on the Price/Forward Earnings ratio, JPM is valued a bit more expensive than the industry average as 70.76% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of JPM to the average of the S&P500 Index (25.98), we can say JPM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 13.9 |
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 an expensive valuation of the company.
PEG (NY)2.07
PEG (5Y)0.83
EPS Next 2Y7.43%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.95%, JPM has a reasonable but not impressive dividend return.
- JPM's Dividend Yield is slightly below the industry average, which is at 2.61.
- JPM's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
- On average, the dividend of JPM grows each year by 6.07%, which is quite nice.
- JPM has been paying a dividend for at least 10 years, so it has a reliable track record.
- JPM has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
- JPM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept 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 14.91 and the Price/Book (PB) ratio is 2.3.
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.