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JPMorgan Chase & Co. (JPM)
NYSE:JPM
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JPMorgan Chase & Co.
(NYSE:JPM)81Outperform
Positive Factors
Earnings and Financial Performance
JPMorgan Chase & Co recorded higher asset management and investment banking income.
Market Share and Regulatory Environment
JPM reflects 'Goliath is Winning' given market share gains, best-in-class performance, and what is seen as the most positive regulatory inflection in three decades.
Negative Factors
Economic Risks
Downside risks include recessionary risks associated with higher than expected inflation, sudden Fed rate cuts.
JPMorgan Chase & Co. (JPM) vs. S&P 500 (SPY)
Market Cap
$739.99B
Dividend Yield1.81%
Average Volume (3M)8.77M
Price to Earnings (P/E)13.4
Beta (1Y)0.95
Revenue Growth17.07%
EPS Growth21.78%
CountryUS
Employees317,233
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)19.75
Shares Outstanding2,796,106,200
10 Day Avg. Volume9,517,551
30 Day Avg. Volume8,765,492
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)N/A
Price to Sales (P/S)4.43
Price to Cash Flow (P/CF)1.30
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$278.50Price Target Upside11.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
JPMorgan Chase & Co. Business Overview & Revenue Model
Company DescriptionJPMorgan Chase & Co. (JPM) is a leading global financial services firm with operations worldwide. The company operates through several key segments, including Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. It offers a comprehensive suite of financial products and services, including banking, investment, and wealth management solutions, serving a diverse range of clients from individual consumers to large corporations and government entities.
How the Company Makes MoneyJPMorgan Chase & Co. generates revenue through a variety of channels. The Consumer & Community Banking segment earns money primarily from interest and fees on loans and deposits provided to individuals and small businesses. The Corporate & Investment Bank segment derives income from investment banking services, such as underwriting and advisory fees, as well as trading and market-making activities. The company's Commercial Banking segment earns revenue from providing financial solutions, including lending and treasury services, to mid-sized businesses. Finally, the Asset & Wealth Management segment generates income from management fees and advisory services related to investment products and wealth management for individuals and institutions. Additionally, JPMorgan Chase benefits from strategic partnerships and its extensive global network, enhancing its capability to offer a broad range of financial services.
JPMorgan Chase & Co. Financial Statement Overview
Summary
JPMorgan Chase & Co. shows strong financial performance with significant revenue and net income growth, excellent profitability metrics, and a stable balance sheet. However, challenges in cash flow management slightly diminish the overall financial robustness.Income Statement
JPMorgan Chase & Co. has demonstrated robust revenue growth, increasing from $145.67 billion in 2023 to $166.88 billion in 2024, marking a 14.58% growth rate. The gross profit margin remains strong at 100% as expected in the banking industry, and net profit margin improved to 35.03% in 2024 from 34.01% in 2023. The EBIT margin has also improved, reflecting effective cost management and operational efficiency. The company shows strong profitability metrics, consistent with top-tier industry performance.92
Very Positive
Balance Sheet
The debt-to-equity ratio stands at 1.24 in 2024, which is a standard level for the banking industry, indicating a balanced leverage position. Return on equity is strong at 16.96%, showcasing effective utilization of equity to generate profits. The equity ratio has marginally increased to 8.61% in 2024 from 8.46% in 2023, indicating a stable financial position. The balance sheet reflects both strong equity growth and manageable leverage.85
Very Positive
Cash Flow
The cash flow situation presents some challenges, with operating cash flow data unavailable for 2024. In the previous year, the ratio of operating cash flow to net income was less than optimal at 0.26 in 2023. The free cash flow growth rate from 2022 to 2023 was negative, indicating potential issues in cash generation relative to profit. Despite these challenges, the company has historically maintained strong cash reserves, which provides a buffer against potential cash flow volatility.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 166.88B | 145.67B | 128.64B | 121.69B | 119.88B | Gross Profit |
| 166.88B | 154.95B | 128.64B | 121.69B | 119.88B | EBIT |
| 84.63B | 70.54B | 52.52B | 65.02B | 41.76B | EBITDA |
| 74.63B | 78.06B | 59.57B | 72.96B | 50.37B | Net Income Common Stockholders |
| 58.47B | 49.55B | 37.68B | 48.33B | 29.13B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 318.37B | 0.00 | 763.93B | 1.03T | 883.56B | Total Assets |
| 4.00T | 3.88T | 3.67T | 3.74T | 3.39T | Total Debt |
| 454.31B | 436.54B | 466.73B | 469.18B | 426.45B | Net Debt |
| -15.01B | -187.61B | -100.51B | -271.66B | -101.16B | Total Liabilities |
| 3.66T | 3.55T | 3.37T | 3.45T | 3.11T | Stockholders Equity |
| 344.76B | 327.88B | 292.33B | 294.13B | 279.35B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 12.97B | 107.12B | 78.08B | -79.91B | Operating Cash Flow |
| 0.00 | 12.97B | 107.12B | 78.08B | -79.91B | Investing Cash Flow |
| 0.00 | 67.64B | -137.82B | -129.34B | -261.91B | Financing Cash Flow |
| 0.00 | -25.57B | -126.26B | 275.99B | 596.64B |
JPMorgan Chase & Co. Technical Analysis
Negative
250.25
Price Trends
257.31
Negative
245.25
Positive
224.66
Positive
Market Momentum
-0.98
Positive
35.34
Neutral
27.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JPM, the sentiment is Negative. The current price of 250.25 is below the 20-day moving average (MA) of 268.39, below the 50-day MA of 257.31, and above the 200-day MA of 224.66, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JPM.
JPMorgan Chase & Co. Risk Analysis
JPMorgan Chase & Co. disclosed 43 risk factors in its most recent earnings report. JPMorgan Chase & Co. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JPMorgan Chase & Co. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $739.99B | 13.40 | 16.96% | 1.81% | 17.07% | 21.78% | |
77 Outperform | $214.69B | 16.75 | 12.79% | 2.81% | 9.17% | 53.77% | |
74 Outperform | $257.53B | 14.60 | 11.01% | 2.01% | 7.87% | 11.69% | |
74 Outperform | $194.18B | 15.35 | 11.70% | 1.89% | 14.80% | 77.97% | |
73 Outperform | $150.66B | 13.45 | 6.08% | 2.86% | 8.20% | 49.26% | |
72 Outperform | $350.58B | 14.34 | 9.18% | 2.19% | 13.06% | 4.94% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
JPM
JPMorgan Chase & Co.
250.25
65.91
35.75%
BAC
Bank of America
42.67
7.92
22.79%
C
Citigroup
72.35
17.97
33.05%
MS
Morgan Stanley
121.72
35.46
41.11%
WFC
Wells Fargo
73.30
18.04
32.65%
GS
Goldman Sachs Group
581.14
198.67
51.94%
JPMorgan Chase & Co. Earnings Call Summary
Earnings Call Date: Jan 15, 2025 | % Change Since: 1.12% | Next Earnings Date: Apr 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record-breaking revenue and net income, robust growth in Investment Banking and Asset & Wealth Management, and improved expense management. However, challenges such as deposit margin compression, loan growth issues, and higher credit costs were noted. Overall, the positive highlights significantly outweigh the lowlights, indicating a strong position and optimism for future growth.Highlights
Record-Breaking Revenue and Net Income
The firm reported a net income of $14 billion for the quarter and a full-year net income of $54 billion with EPS of $18.22, reflecting strong financial performance across all segments.
Strong Revenue Growth
Revenue for the quarter was $43.7 billion, up 10% year-on-year, driven by higher asset management fees, investment banking fees, and markets revenue.
Investment Banking Success
Investment Banking fees increased by 49% year-on-year, with advisory fees up 41% and underwriting fees significantly up, driven by favorable market conditions.
Record Asset and Wealth Management Inflows
The firm reported record long-term net inflows of $234 billion, with AUM reaching $4 trillion and client assets at $5.9 trillion, both up 18% year-on-year.
Improved Expense Management
Expenses were down $1.7 billion or 7% year-on-year, excluding the prior year's FDIC special assessment, indicating efficient cost management.
Positive Outlook for Investment Banking
With positive momentum and a strong pipeline, the firm remains optimistic about the future of its Investment Banking segment.
Lowlights
Deposit Margin Compression
NII ex Markets was down $548 million or 2% due to lower rates and associated deposit margin compression, impacting the Banking & Wealth Management revenue.
Challenges in Loan Growth
Global Corporate and Investment Banking loans were down 2% quarter-on-quarter, with commercial real estate loans flat due to paydowns offsetting new originations.
Higher Credit Costs
Credit costs were $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million, driven by higher card revolving balances.
Company Guidance
During the call, JPMorgan Chase provided comprehensive guidance on its 2025 financial outlook, highlighting several key metrics. The firm anticipates 2025 net interest income (NII) excluding Markets to be approximately $90 billion, with firm-wide NII expected to reach around $94 billion. They foresee a modest compression in deposit margins due to lower rates, with the NII trough potentially occurring mid-year before subsequent growth. Additionally, 2025 expenses are projected at about $95 billion, driven by volume and revenue-related expenses and investments in new products and technology. The firm also reiterated a card net charge-off rate guidance of approximately 3.6% for 2025 and emphasized a robust capital position with a CET1 ratio of 15.7%. Adjustments in capital return strategies, particularly through share buybacks, were discussed to manage excess capital effectively.JPMorgan Chase & Co. Corporate Events
Executive/Board ChangesFinancial Disclosures
JPMorgan Chase CEO Compensation Boost Amid Record Profits
Positive
Jan 23, 2025
JPMorgan Chase & Co. announced the Board’s approval of a $39 million annual compensation package for CEO James Dimon for 2024, up from $36 million the previous year, reflecting the firm’s strong financial performance. In 2024, the firm reported record revenue of $180.6 billion and net income of $58.5 billion, with a common equity Tier 1 ratio of 15.7%, continuing to invest in long-term strategic initiatives amid a challenging global economic environment. Additionally, Mr. Dimon plans to sell approximately 1 million shares of his JPMorgan stock holdings for diversification and tax purposes.
Financial Disclosures
JPMorgan Chase Discusses Q4 2024 Earnings in Presentation
Neutral
Jan 15, 2025
On January 15, 2025, JPMorgan Chase & Co. conducted an investor presentation to discuss its fourth-quarter earnings for 2024. The presentation included slides that were made available on the firm’s website. The report contains forward-looking statements which involve significant risks and uncertainties, and actual results may differ from those anticipated. These insights are crucial for stakeholders as they navigate potential impacts on the firm’s future operations and market positioning.
Executive/Board ChangesBusiness Operations and Strategy
JPMorgan Announces Leadership Changes with New COO
Neutral
Jan 14, 2025
On January 14, 2025, JPMorgan Chase & Co. announced that Daniel Pinto, President and COO, will retire at the end of 2026, with his responsibilities transitioning to Jennifer A. Piepszak as COO effective immediately. This leadership change is part of a broader restructuring to maintain JPMorgan’s leadership in financial services, with implications for enhancing its operational and strategic management across global sectors.
Executive/Board ChangesBusiness Operations and Strategy
JPMorgan Chase Elects Michele Buck to Board
Positive
Dec 12, 2024
JPMorgan Chase & Co. has elected Michele G. Buck, the Chairman, President, and CEO of The Hershey Company, as a director effective March 17, 2025. Ms. Buck’s extensive experience in consumer-packaged goods and leadership in driving transformational change is expected to add significant value to JPMorgan Chase’s operations and strategic growth. Her appointment reflects the company’s commitment to innovation and enhancing customer and employee service.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.