JPMorgan Chase & Co.
- 1-year return
- ▲ +13.8%
- 52-week range
- $282.84 – $365.18
- Market cap
- $902.2B
- P/E (trailing)
- 14.2
- Dividend yield
- 1.94%
Scorecard
Value checklist: 2/7 passed (score 43%). Growth checklist: 3/5 passed (score 60%). A profile needs a score of at least 60%. Too few growth checks could be evaluated (5/11) to call it a growth stock. It doesn't clearly fit either profile; the closer fit is growth. 6 of 18 checks couldn't be evaluated and were left out.
Price history
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Revenue and net income
By fiscal year
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Earnings per share
Diluted EPS by fiscal year · Yahoo Finance (annual statements)
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Profit margins
Gross, operating and net margin by fiscal year
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Company
- Sector
- Financial Services
- Industry
- Banks - Diversified
- Country
- United States
- Market cap
- $902.2B
- Price
- $339.72 USD
- Annual dividend
- $6.60
- Employees
- 322,964
Business description
JPMorgan Chase & Co. operates as a bank and financial holding company in the United States, rest of North America, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and the Caribbean. It operates in three segments: Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management. The company offers deposit, investment and lending products, and cash management; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit cards, payment solutions, travel services, merchant offers, lifestyle benefits, auto loans, and leases to consumers and small businesses through bank branches, ATMs, and digital and telephone banking. It also provides investment banking, market-making, financing, custody, and securities products and services; corporate strategy and structure advisory, equity and debt market capital-raising, and loan origination and syndication services; cash and derivative instruments, risk management solutions, prime brokerage, clearing, and research; and fund services, liquidity and trading services, and data solutions products for large corporations, financial institutions, merchants, start-ups, small and midsized companies, local governments, municipalities, nonprofits, and commercial real estate clients. In addition, the company offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; retirement products and services, estate planning, lending, deposits, and investment management products to high-net-worth clients; and financial transaction processing. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
Value checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Price / Earnings Growth (PEG) | Below 1 | 1.57 | Fail | Reported by Yahoo Finance |
| Price / Earnings (P/E) | Below 15 | 14.25 | Pass | |
| Price / Book (P/B) | Below 1 | 2.57 | Fail | |
| Return on Equity (ROE) | Above 15% | 18.01% | Pass | |
| Return on Assets (ROA) | Above 4% | 1.37% | Fail (sector-typical) | Financial firms hold large loan and securities books, so ROA is naturally low (bank ROA is usually near 1%; CIBC ~0.76%). |
| Debt / Equity (D/E) | Below 1 | 1.38 | Fail (sector-typical) | Lenders fund their loans with borrowed money, so higher D/E is normal for financial firms. |
10-Year EPS Test
Fail| EPS 3.8 years ago | $12.09 |
| Current EPS | $23.84 |
| Lowest P/E in period | 7.59 |
| Current share price | $339.72 |
| Annual dividend per share | $6.60 |
| EPS growth rate | 19.56% |
| Projected EPS in 3.8 years | $47.01 |
| Projected trading price (lowest P/E x EPS) | $356.58 |
| Projected value (+ 3.8 yrs of dividends) | $381.66 |
| Annual compound return | 3.11% |
| Hurdle rate | 12.00% |
Inputs: FY 2022 EPS (Yahoo Finance (annual statements)); trailing 12-month EPS; lowest P/E in FY 2023
Only 3.8 years of EPS history available, so this is a shorter test than 10 years.
Growth checklist
| Ratio | Threshold | Actual | Result | Note |
|---|---|---|---|---|
| Gross Profit Margin | Above 40% | 0.00% | N/A | Not meaningful for financial firms, which have no cost of goods sold. |
| Operating Profit Margin | 10% to 25% | 42.58% | Fail | Above the range: very profitable, which fits a mature business more than one reinvesting for growth. |
| Net Profit Margin | Above 10% | 34.59% | Pass | |
| Return on Equity (ROE) | Above 15% | 18.01% | Pass | |
| Current Ratio | Above 2 | N/A | N/A | Not meaningful for financial firms: their balance sheets aren't split into current and long-term items, and their receivables are the loans they make. |
| Quick Ratio | Above 1.5 | N/A | N/A | Same as above. |
| Accounts Receivable Turnover | Above 7.3 | 1.71 | N/A | Same as above. |
| Inventory Turnover | Above 7.3 | N/A | N/A | Same as above. |
| Healthy Working Capital (CA > CL) | Above $0 | N/A | N/A | Same as above. |
| Revenue Growth (annual CAGR) * | Above 10% | 12.49% | Pass | |
| Expected EPS Growth (next year) * | Above 10% | 5.96% | Fail |
* Extra growth signal on top of the core checklist.
Qualitative: value factors
-
Small is BeautifulAgainst
Large-cap company ($902.2B market cap). It is widely followed by analysts and big investors, so the market is less likely to overlook it.
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Annuity BusinessSupports
Income looks regular and predictable, which value investors like because it holds up through economic cycles: the business description points to recurring income (loan, lending, lease); revenue rose every year for the last 3 years.
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Durable Competitive AdvantageSupports
ROE of 18.0% and net margin of 34.6% suggest it earns above-average returns in its niche, a sign of pricing power.
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Revenues & CommoditySupports
Revenue from Banks - Diversified isn't tied to commodity prices, so earnings are more predictable.
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Need for CapitalAgainst
The business needs significant debt or capital spending: debt-to-equity is 1.38 (threshold: below 1).
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Insider BuyingAgainst
In the past two years insiders made 0 purchases ($0) and 65 sales ($454.5M). No insider buying, so there's no signal that management sees the stock as undervalued.
Qualitative: growth factors
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Market PotentialAgainst
Its market doesn't look like a fast-growing one: revenue has grown 12.5% per year.
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New Goods/Services & Customer OrientationNeutral
Not enough R&D and revenue history to judge the product pipeline.
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Research & DevelopmentAgainst
No R&D expense reported, so the company isn't investing in new technology through R&D.
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Profit MarginsAgainst
Gross 0.0%, operating 42.6%, net 34.6%. Margins are not high enough to signal strong pricing power.
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Market ShareNeutral
At $902.2B it is already a dominant player, so there's less room to gain share (revenue growth 12.5% per year).
Caveats
- Return on Assets (ROA) fails the threshold (1.37), but financial firms hold large loan and securities books, so ROA is naturally low (bank ROA is usually near 1%; CIBC ~0.76%).
- Debt / Equity (D/E) fails the threshold (1.38), but lenders fund their loans with borrowed money, so higher D/E is normal for financial firms.
- EPS test: Only 3.8 years of EPS history available, so this is a shorter test than 10 years.
- Long-run EPS history comes from Yahoo Finance (about 4 years). Set SEC_USER_AGENT to use 10+ years of SEC filings, or enter the EPS test inputs yourself.