Jpmorgan Chase & Co (NYSE: JPM)

Sector: Financial Services Industry: Banks - Diversified CIK: 0000019617
Market Cap 1,043.32 Bn
P/B 4.07
P/E 33.97
P/S 9.59
ROIC (Qtr) 4.80
Div Yield % 1.37
Rev 1y % (Qtr) 7.08
Total Debt (Qtr) 942.38 Bn
Debt/Equity (Qtr) 2.60
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About

JPMorgan Chase & Co., often referred to as JPMorgan Chase, is a prominent financial services firm based in the United States with a global presence. The company operates in various sectors including investment banking, consumer and small business financial services, commercial banking, financial transaction processing, and asset management. It serves millions of customers, predominantly in the United States, and many of the world's most prominent corporate, institutional, and government clients across the globe. JPMorgan Chase's main business activities...

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Investment thesis

Bull case

  • Strong tangible asset base of 4360.44B provides 4.63x coverage of total debt 942.38B, indicating robust asset backing and low credit risk.
  • Cash position of 343.34B provides exceptional 251.16x coverage of minority interest expenses 1.37B, indicating strong liquidity.
  • Free cash flow of (147.78B) provides excellent 8.89x coverage of dividends (16.62B), indicating sustainable shareholder returns.
  • Retained earnings of 416.06B represent substantial 1.15x of equity 362.44B, indicating strong internal capital generation.
  • Retained earnings of 416.06B provide strong 6.45x coverage of intangibles 64.46B, indicating quality earnings retention.

Bear case

  • Operating cash flow of (147.78B) barely covers its investment activities of (265.56B), with a coverage ratio of 0.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (147.78B) provides minimal -9.51x coverage of tax expenses of 15.55B, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (147.78B) represents just -0.88x of debt issuance 167.62B, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (147.78B) barely covers operating expenses of 6.78B with a -21.81 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of (147.78B) shows concerning coverage of minority interest expenses of 1.37B, which is -108.11x, suggesting complex corporate structure risks.

Peer comparison

Companies in the Banks - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 JPM Jpmorgan Chase & Co 1,043.32 Bn 33.97 9.59 942.38 Bn
2 BAC Bank Of America Corp /De/ 532.79 Bn 28.35 6.13 708.27 Bn
3 WFC Wells Fargo & Company/Mn 446.49 Bn 124.86 10.43 408.42 Bn
4 C Citigroup Inc 376.35 Bn 51.48 4.87 720.33 Bn
5 RY Royal Bank Of Canada 244.65 Bn 16.82 5.14 9.97 Bn
6 TD Toronto Dominion Bank 165.03 Bn 11.57 3.41 7.67 Bn
7 BK Bank of New York Mellon Corp 143.13 Bn 63.87 9.95 51.52 Bn
8 BMO Bank Of Montreal /Can/ 107.49 Bn 17.28 4.15 179.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.26 0.22
EV to Cash from Ops. EV/CFO 73.05 241.80
EV to Debt EV to Debt 1.21 2.53
EV to EBIT EV/EBIT 29.25 33.73
EV to EBITDA EV/EBITDA 21.35 25.98
EV to Free Cash Flow [EV/FCF] EV/FCF 73.05 245.05
EV to Market Cap EV to Market Cap 1.09 1.98
EV to Revenue EV/Rev 10.49 9.02
Price to Book Value [P/B] P/B 4.07 3.87
Price to Earnings [P/E] P/E 33.97 33.57
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.35 2.37
Dividend Payout Ratio % Div Payout % (Qtr) 27.70 29.28
Dividend per Basic Share Div per Share (Qtr) 5.80 2.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -10.90 15.72
Interest Coverage Interest Coverage 0.00 0.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -5.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.84 -8.06
Dividend Growth (1y) % Div 1y % (Qtr) 20.83 -10.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.09 32.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.06 22.90
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.06 30.58
EBT Growth (1y) % EBT 1y % (Qtr) -3.06 30.58
EPS Growth (1y) % EPS 1y % (Qtr) 1.31 38.83
FCF Growth (1y) % FCF 1y % (Qtr) -251.76 235.05
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.75 9.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.03
Cash Payout Ratio Cash Payout (Qtr) -0.11 0.17
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 2.60 3.24
Interest Cover Ratio Interest Cover Ratio 0.00 0.00
Times Interest Earned Times Interest Earned 0.00 0.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 43.90 38.15
EBIT Margin % EBIT Margin % (Qtr) 39.04 38.03
EBT Margin % EBT Margin % (Qtr) 39.04 33.01
Gross Margin % Gross Margin % (Qtr) 100.00 98.96
Net Profit Margin % Net Margin % (Qtr) 30.50 26.44