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JPMorgan Chase (JPM)
NYSE:JPM
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JPMorgan Chase
(NYSE:JPM)
82Outperform
Positive Factors
Earnings
JPM outperformed after posting a better than expected NII and strong equities trading revenue.
Financial Performance
JPMorgan Chase continues to outperform peers, delivering stronger-than-expected net interest income and gaining deposit market share across the US.
Negative Factors
Economic Risks
Potential recessionary risks include higher-than-expected inflation and a sharper-than-expected slowdown in the macroeconomic environment, which may lead to slower loan growth and higher credit losses.
International Expansion
JPMorgan's international retail expansion involves substantial execution risks and heavy spending, which may impact profitability in the short term.
JPMorgan Chase (JPM) vs. S&P 500 (SPY)
Market Cap
$701.75B
Dividend Yield2%
Average Volume (3M)12.92M
Price to Earnings (P/E)12.4
Beta (1Y)1.17
Revenue Growth12.48%
EPS Growth23.05%
CountryUS
Employees318,477
SectorFinancial
Sector Strength85
IndustryBanks - Diversified
Share Statistics
EPS (TTM)5.07
Shares Outstanding2,779,094,500
10 Day Avg. Volume9,464,551
30 Day Avg. Volume12,921,959
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.20
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$267.47Price Target Upside5.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
JPMorgan Chase Business Overview & Revenue Model
Company DescriptionJPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers s deposit, investment and lending products, payments, and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, auto loan, and leasing services. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; payments and cross-border financing; and cash and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, payments, investment banking, and asset management to small business, large and midsized companies, local governments, and nonprofit clients; and commercial real estate banking services to investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits, and investment management products. The company also provides ATM, online and mobile, and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
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 Key Performance Indicators (KPIs)
Any
Assets Under Management
Shows the total value of assets managed on behalf of clients, signaling the firm's investment management scale and potential fee income.
Shows the total value of assets managed on behalf of clients, signaling the firm's investment management scale and potential fee income.
Data provided by:
Main Street Data
Main Street DataJPMorgan Chase Financial Statement Overview
Summary
JPMorgan Chase & Co. shows strong financial performance with impressive revenue and net income growth. The balance sheet is robust with balanced leverage and a strong return on equity. However, cash flow management poses challenges which slightly temper the overall score.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 | |||
| 1.66T | 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 | |||
| -42.01B | 12.97B | 107.12B | 78.08B | -79.91B | Operating Cash Flow |
| -42.01B | 12.97B | 107.12B | 78.08B | -79.91B | Investing Cash Flow |
| -163.40B | 67.64B | -137.82B | -129.34B | -261.91B | Financing Cash Flow |
| 63.45B | -25.57B | -126.26B | 275.99B | 596.64B |
JPMorgan Chase Technical Analysis
Positive
252.56
Price Trends
239.92
Positive
246.52
Positive
231.93
Positive
Market Momentum
3.19
Negative
62.59
Neutral
91.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JPM, the sentiment is Positive. The current price of 252.56 is above the 20-day moving average (MA) of 236.82, above the 50-day MA of 239.92, and above the 200-day MA of 231.93, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JPM.
JPMorgan Chase Risk Analysis
JPMorgan Chase disclosed 43 risk factors in its most recent earnings report. JPMorgan Chase 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $701.75B | 12.39 | 17.25% | 2.00% | 12.48% | 23.05% | |
80 Outperform | $198.30B | 10.44 | 10.30% | 5.80% | -1.91% | -6.79% | |
78 Outperform | $240.16B | 13.26 | 11.05% | 2.10% | 3.51% | 16.51% | |
73 Outperform | $309.33B | 12.26 | 9.46% | 2.48% | 8.23% | 16.15% | |
65 Neutral | $136.50B | 11.23 | 9.70% | 1.92% | 13.21% | -12.06% | |
64 Neutral | $131.84B | 11.13 | 6.33% | 3.13% | 2.97% | 88.51% | |
64 Neutral | $12.61B | 9.79 | 7.95% | 16985.69% | 12.77% | -3.98% |
* Financial Sector Average
Performance Comparison
JPM
JPMorgan Chase
252.56
65.16
34.77%
BAC
Bank of America
41.12
4.19
11.35%
C
Citigroup
70.24
10.27
17.13%
HSBC
HSBC Holdings
56.68
15.46
37.51%
MUFG
Mitsubishi UFJ
12.36
2.49
25.23%
WFC
Wells Fargo
73.85
15.02
25.53%
JPMorgan Chase Earnings Call Summary
Earnings Call Date:Apr 11, 2025
(Q1-2025)
| % Change Since: 11.21%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Neutral
JPMorgan Chase delivered strong financial results with significant growth in revenue and net income, particularly in the Commercial & Investment Bank and Asset & Wealth Management segments. However, the company faces challenges from increased credit costs, a decline in NII ex. Markets, and a highly uncertain macroeconomic environment that has led to a substantial reserve build. Expenses have also risen due to higher compensation and fees.Q1-2025 Updates
Positive Updates
Strong Net Income and Revenue Growth
JPMorgan Chase reported net income of $14.6 billion and EPS of $5.07 on revenue of $46 billion, with an ROTCE of 21%. Revenue was up $3.5 billion or 8% year-on-year.
Commercial & Investment Bank Performance
CIB reported net income of $6.9 billion on revenue of $19.7 billion, which is up 12% year-on-year. IB fees were up 12% year-on-year, with advisory fees up 16% and debt underwriting fees up 16%.
Asset & Wealth Management Growth
AWM reported net income of $1.6 billion, with a pre-tax margin of 35%. Revenue of $5.7 billion was up 12% year-on-year, driven by growth in management fees, net inflows, and higher market levels.
Card Services & Auto Segment Growth
Revenue in Card Services & Auto was up 12% year-on-year, driven by Card NII, higher revolving balances, and higher operating lease income in Auto. Card outstandings were up 10%, and Auto originations were $10.7 billion, up 20%.
Successful Capital Distribution
JPMorgan Chase distributed $11 billion of capital to shareholders, reflecting $7.1 billion of net common share repurchases and an increased common dividend of $1.40 per share.
Negative Updates
Increased Credit Costs and Reserve Build
Credit costs were $3.3 billion, with net charge-offs of $2.3 billion and a net reserve build of $973 million, reflecting increased downside scenarios in the CECL framework.
NII ex. Markets Decline
NII ex. Markets was down $430 million or 2%, driven by lower rates, deposit margin compression, and lower deposit balances in CCB.
Uncertain Macroeconomic Outlook
There is elevated uncertainty in the macroeconomic environment, with a weighted average unemployment rate of 5.8% embedded in the allowance for credit losses.
Higher Expenses
Expenses of $23.6 billion were up $840 million or 4% year-on-year, largely driven by compensation, growth in employees, brokerage and distribution fees, as well as marketing and legal expenses.
Company Guidance
During JPMorgan Chase's First Quarter 2025 Earnings Call, the firm reported a net income of $14.6 billion, translating to an EPS of $5.07 on revenue of $46 billion, with a return on tangible common equity (ROTCE) of 21%. The revenue saw an 8% year-on-year increase, driven by a $1.7 billion or 21% rise in Markets revenue, despite a 2% decline in NII ex. Markets. The firm's expenses rose by 4% to $23.6 billion, influenced by increased compensation and legal expenses. Credit costs were $3.3 billion, with net charge-offs of $2.3 billion and a net reserve build of $973 million, bringing the total allowance for credit losses to $27.6 billion. The firm maintained a CET1 ratio of 15.4%, distributing $11 billion to shareholders. For the full year, JPMorgan Chase expects NII ex. Markets to be around $90 billion and anticipates a card net charge-off rate of about 3.6%. The firm expressed a cautious stance on investment banking due to elevated risks and uncertainties in the macroeconomic environment.JPMorgan Chase Corporate Events
Financial Disclosures
JPMorgan Chase Q1 2025 Earnings Presentation Highlights
Neutral
Apr 11, 2025
On April 11, 2025, JPMorgan Chase held an investor presentation to review its first quarter earnings for 2025. The presentation included slides that were posted on the company’s website, although these slides are not considered filed under the Securities Exchange Act of 1934. The report also contained forward-looking statements that are subject to significant risks and uncertainties, with actual results potentially differing from those projected. These insights are crucial for stakeholders to understand the potential impact on the company’s operations and industry positioning.
Spark’s Take on JPM Stock
According to Spark, TipRanks’ AI Analyst, JPM is a Outperform.
JPMorgan Chase & Co. maintains a strong financial position with robust profitability and effective debt management. The stock is attractively valued, though technical indicators suggest potential short-term consolidation. Positive earnings call highlights and recent corporate events bolster the stock’s outlook.
To see Spark’s full report on JPM stock, click here.
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.