NYSE:JPM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

JPMorgan Chase & Co. operates as a financial services company worldwide. More Details

Rewards

PE ratio (13.4x) is below the US market (18.9x)

Earnings are forecast to grow 11.35% per year

Pays a reliable dividend of 3.5%

Risk Analysis

No risks detected for JPM from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has JPMorgan Chase's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JPM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

JPM

3.1%

US Banks

-0.8%

US Market


1 Year Return

-17.7%

JPM

-26.5%

US Banks

18.0%

US Market

Return vs Industry: JPM exceeded the US Banks industry which returned -28.7% over the past year.

Return vs Market: JPM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

JPMIndustryMarket
7 Day1.1%3.1%-0.8%
30 Day9.1%11.6%6.8%
90 Day4.7%3.1%8.9%
1 Year-14.7%-17.7%-23.8%-26.5%20.7%18.0%
3 Year10.5%1.1%-16.8%-23.7%41.5%32.1%
5 Year81.6%57.8%20.3%5.4%84.6%63.8%

Price Volatility Vs. Market

How volatile is JPMorgan Chase's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is JPMorgan Chase undervalued compared to its fair value and its price relative to the market?

13.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JPM ($102.88) is trading above our estimate of fair value ($91.46)

Significantly Below Fair Value: JPM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JPM is poor value based on its PE Ratio (13.4x) compared to the US Banks industry average (10.1x).

PE vs Market: JPM is good value based on its PE Ratio (13.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JPM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: JPM is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is JPMorgan Chase forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JPM's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: JPM's earnings (11.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: JPM's earnings are forecast to grow, but not significantly.

Revenue vs Market: JPM's revenue (0.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: JPM's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JPM's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has JPMorgan Chase performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JPM has high quality earnings.

Growing Profit Margin: JPM's current net profit margins (24.3%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: JPM's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: JPM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JPM had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the Banks industry average (-3.2%).


Return on Equity

High ROE: JPM's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is JPMorgan Chase's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: JPM's Assets to Equity ratio (12x) is moderate.

Allowance for Bad Loans: JPM has a sufficient allowance for bad loans (281%).

Low Risk Liabilities: 67% of JPM's liabilities are made up of primarily low risk sources of funding.

Loan Level: JPM has an appropriate level of Loans to Assets ratio (28%).

Low Risk Deposits: JPM's Loans to Deposits ratio (46%) is appropriate.

Level of Bad Loans: JPM has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

What is JPMorgan Chase current dividend yield, its reliability and sustainability?

3.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JPM's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: JPM's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: JPM's dividends per share have been stable in the past 10 years.

Growing Dividend: JPM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), JPM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JPM's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Jamie Dimon (64 yo)

14.83yrs

Tenure

US$31,612,616

Compensation

Mr. James Dimon, also known as Jamie, has been the Chairman and Chief Executive Officer of JPMorgan Chase & Co. since December 31, 2006 and December 31, 2005 respectively and served as its President since ...


CEO Compensation Analysis

Compensation vs Market: Jamie's total compensation ($USD31.61M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Jamie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Dimon
Chairman & CEO14.83yrsUS$31.61m0.27%
$ 838.6m
Daniel Pinto
Co-President2.75yrsUS$22.04m0.016%
$ 50.6m
Gordon Smith
Co-President2.75yrsUS$22.21m0.017%
$ 53.1m
Jennifer Piepszak
Executive VP & CFO1.42yrsUS$7.75m0.00021%
$ 658.6k
Mary Erdoes
Chief Executive Officer of Asset & Wealth Management11.08yrsUS$20.75m0.015%
$ 48.2m
Marianne Lake
Chief Executive Officer of Consumer Lending1.42yrsUS$15.20m0.0050%
$ 15.6m
Martin Marron
CEO of Latin America & Canada and Head of Investment Banking & Private Banking - Latin Americano datano datano data
John Horner
Chief Investment Officer and Treasurer5.5yrsno datano data
Lori Beer
Global Chief Information Officer3.08yrsno data0.00079%
$ 2.5m
Jason Scott
Head of IRno datano datano data
Stacey Friedman
Executive VP & General Counsel4.75yrsno data0.0016%
$ 5.1m
Francis Pearn
Chief Compliance Officer3.67yrsno datano data

3.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: JPM's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Dimon
Chairman & CEO14.83yrsUS$31.61m0.27%
$ 838.6m
David Li
Vice Chairman of Global Banking6yrsno datano data
Michael Neal
Independent Director6.75yrsUS$380.00k0.00030%
$ 940.8k
Lee Raymond
Lead Independent Directorno dataUS$447.50k0.000060%
$ 188.2k
James Crown
Independent Director16.25yrsUS$380.00k0.40%
$ 1.3b
Linda Bammann
Independent Director7.08yrsUS$405.00k0.0022%
$ 6.8m
Mellody Hobson
Independent Director2.58yrsUS$400.00k0.0042%
$ 13.2m
Stephen Burke
Independent Director16.25yrsUS$404.51k0.0036%
$ 11.1m
Timothy Flynn
Independent Director8.42yrsUS$402.50k0.00033%
$ 1.0m
Andrew Neil Fleming
Chairman of Japanese Investment Trust5.83yrsno datano data
Todd Combs
Independent Director4.08yrsUS$370.81k0.00043%
$ 1.3m
David Garrard
Member of Advisory Councilno datano datano data

6.9yrs

Average Tenure

63.5yo

Average Age

Experienced Board: JPM's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JPMorgan Chase & Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JPMorgan Chase & Co.
  • Ticker: JPM
  • Exchange: NYSE
  • Founded: 1799
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$313.599b
  • Shares outstanding: 3.05b
  • Website: https://www.jpmorganchase.com

Number of Employees


Location

  • JPMorgan Chase & Co.
  • 383 Madison Avenue
  • New York
  • New York
  • 10179
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JPMNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1969
0Q1FLSE (London Stock Exchange)YesCommon SharesGBUSDMar 1969
CMCDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1969
JPM *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMar 1969
CMCXTRA (XETRA Trading Platform)YesCommon SharesDEEURMar 1969
JPMBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPMar 1969
JPMSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDMar 1969
JPMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFMar 1969
JPMETLX (Eurotlx)YesCommon SharesITEURMar 1969
JPMBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDMar 1969
JPMWBAG (Wiener Boerse AG)YesCommon SharesATEURMar 1969
JPMBASE (Buenos Aires Stock Exchange)CEDEAR REP 5/10 USD2.5ARARSJul 2001
CMC2DB (Deutsche Boerse AG)PERP SR NT 7.9%DEUSDApr 2008
JPMC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.5 COM USD1BRBRLAug 2012
CMC1DB (Deutsche Boerse AG)5.15% BDS 29/05/49 USD1000DEUSDApr 2013
CMC6DB (Deutsche Boerse AG)PERP SR -R NT 6%DEUSDJul 2013
CMC5DB (Deutsche Boerse AG)6.75%-FRN SUB PERP USD 'S'DEUSDJan 2014
JPM4CNDB (Deutsche Boerse AG)6.1%-FRN PERP USD 'X'DEUSDSep 2014
JPM.PRGNYSE (New York Stock Exchange)DEP SHS PFDUSUSDJun 2015
JPM.PRHNYSE (New York Stock Exchange)DEP SHS REP PFDUSUSDJul 2015
JPM.PRDNYSE (New York Stock Exchange)5.75% SHS PFD DDUSUSDSep 2018
JPM.PRCNYSE (New York Stock Exchange)6 DEP NCM PFD EEUSUSDJan 2019
JPM.PRJNYSE (New York Stock Exchange)4.75% DP SH GGUSUSDNov 2019
JP2UU5DB (Deutsche Boerse AG)4.6%-FRN SUB PERP USD1000 'HH'DEUSDJan 2020
JP2UVDDB (Deutsche Boerse AG)4%-FRN SUB PERP USD 'II'DEUSDFeb 2020

Biography

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates in four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and As ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:58
End of Day Share Price2020/10/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.