JPMorgan Chase (JPM) AI Stock Analysis

• Market Cap: $820.99B
• Dividend Yield: 1.77%
• Average Volume (3M): 7.71M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.13
• Revenue Growth: 4.00%
• EPS Growth: 8.73%
• Country: US
• Employees: 318,477
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Diversified
• EPS (TTM): 5.24
• Shares Outstanding: 2,749,754,000
• 10 Day Avg. Volume: 6,862,394
• 30 Day Avg. Volume: 7,705,996
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 6.94
• Enterprise Value/Gross Profit: 11.81
• Enterprise Value/Ebitda: 22.56
• 1Y Price Target: $307.88
• Price Target Upside: 2.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 77 Outperform
• Price Target: $331.00 ▲(10.60% Upside)

JPMorgan Chase's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic initiatives, such as the notes offering, further bolster its market position. However, high leverage and negative cash flows present risks that require monitoring.

Positive Factors

Earnings

JPM delivered a strong, 11% EPS beat vs. consensus and raised NII guidance.

Financial Performance

JPMorgan's core ROTCE is significantly higher than its peers, indicating strong financial performance.

Market Position

The stock valuation is at a 35% P/E discount to S&P and barely a premium to banking peers, highlighting its dominant market positioning and revenue diversity.

Negative Factors

Macro Uncertainties

Caution is advised due to macro uncertainties such as trade tensions and policy shifts, which could increase provisions and non-performing loans.

Market Reaction

A relatively mild market reaction to a strong performance report highlights concerns about the stock's valuation.

Valuation Concerns

Valuation feels rich with the company trading at a high price compared to its tangible book value and implied cost of equity.

JPMorgan Chase Business Overview & Revenue Model

Company Description

JPMorgan 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 Money

JPMorgan Chase generates revenue through multiple streams, primarily from interest income, fees, and investment returns. The Consumer & Community Banking segment earns money by offering savings and checking accounts, mortgages, auto loans, and credit cards, which generate interest income as well as fees from transactions and account maintenance. The Corporate & Investment Bank segment earns significant revenue through advisory and underwriting fees from mergers and acquisitions, capital market activities, and trading and investment management services. The Commercial Banking division derives revenue from lending services to mid-sized companies and other businesses, while the Asset & Wealth Management segment generates fees from managing client portfolios and providing investment advice. Additionally, JPMorgan Chase benefits from strategic partnerships and technology investments that enhance its service offerings and operational efficiency, contributing to its overall profitability.

JPMorgan Chase Financial Statement Overview

Summary

JPMorgan Chase showcases strong revenue and profitability growth, maintaining healthy margins. However, high leverage and negative cash flows suggest potential financial risks. The company's strong equity and returns provide a buffer, but cash flow management requires attention.

Income Statement

JPMorgan Chase has shown strong revenue growth with a significant increase in total revenue from $153.8B in 2022 to $273.4B in TTM (Trailing-Twelve-Months) 2025. Gross profit margins remain healthy at 58.8% for TTM 2025, indicating effective cost control. Net profit margin also showcases robust performance at 21.8% for TTM 2025. The firm's EBIT and EBITDA margins indicate strong operational profitability. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The debt-to-equity ratio is relatively high at 2.86 in TTM 2025, indicating a higher leverage which could pose risks. However, the equity ratio is stable at 8.1%, reflecting a solid capital structure. Return on equity is impressive at 17.0% for TTM 2025, showcasing effective use of shareholder funds. The balance sheet shows strength in equity but highlights potential risks with high leverage.

Cash Flow

The operating cash flow has turned negative to -$139.7B in TTM 2025, raising concerns about cash generation from operations. Free cash flow is also negative, indicating challenges in liquidity management. The operating cash flow to net income ratio is negative, suggesting issues in converting profits to cash. Cash flow management needs improvement, although financing activities are robust.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.79B	236.27B	153.82B	127.24B	129.84B
Gross Profit	158.78B	145.67B	121.39B	130.91B	102.47B
EBITDA	83.02B	69.12B	53.22B	67.49B	44.43B
Net Income	58.47B	49.55B	37.68B	48.33B	29.13B
Balance Sheet
Total Assets	4.00T	3.88T	3.67T	3.74T	3.38T
Cash, Cash Equivalents and Short-Term Investments	866.01B	816.64B	763.93B	1.03T	883.56B
Total Debt	751.15B	653.07B	542.50B	548.94B	542.10B
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

• Technical Analysis Sentiment: Positive
• Last Price: 299.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 299.28 is above the 20-day moving average (MA) of 292.54, above the 50-day MA of 289.73, and above the 200-day MA of 258.31, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JPM.

JPMorgan Chase Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$224.58B	12.93	10.69%	5.08%	-2.96%	-13.66%
BAC	79 Outperform	$372.20B	14.49	9.46%	2.06%	4.95%	20.49%
JPM	77 Outperform	$820.99B	15.13	16.13%	1.77%	4.00%	8.73%
WFC	77 Outperform	$261.11B	13.75	11.51%	2.00%	0.37%	19.89%
MUFG	76 Outperform	$174.07B	14.40	9.43%	2.26%	0.82%	28.48%
C	73 Outperform	$176.21B	14.05	6.64%	2.35%	0.52%	89.25%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%

JPMorgan Chase Corporate Events

JPMorgan Chase Completes $4 Billion Notes Offering

On July 23, 2025, JPMorgan Chase & Co. successfully completed a public offering of $4 billion in Fixed-to-Floating Rate Subordinated Notes due in 2036. This financial move, registered under the Securities Act of 1933, signifies a strategic effort to bolster the company’s financial standing and potentially enhance its market position, impacting stakeholders by providing additional capital for future growth and operational flexibility.

JPMorgan Chase Q2 2025 Earnings Presentation Held

On July 15, 2025, JPMorgan Chase & Co. held an investor presentation to review its second quarter earnings for 2025. The presentation included slides that were made available on the firm’s website, but the information is not considered filed for purposes of the Securities Exchange Act of 1934. The report also contained forward-looking statements, highlighting potential risks and uncertainties that could affect actual results, as outlined in the firm’s previous filings with the SEC.

JPMorgan Chase Announces Preliminary Stress Capital Buffer

On July 1, 2025, JPMorgan Chase & Co. released a statement regarding its preliminary Stress Capital Buffer requirement. This announcement is significant as it impacts the firm’s regulatory capital requirements and could influence its financial strategies and stakeholder relations.

JPMorgan Chase Releases 2025 Dodd-Frank Stress Test Results

On July 1, 2025, JPMorgan Chase released the results of its 2025 Dodd-Frank Act Stress Test, which were conducted for both the firm and its national banking association. The results, which are not deemed filed for certain regulatory purposes, provide insights into the firm’s financial resilience and compliance with regulatory requirements, impacting its operations and industry positioning.

JPMorgan Chase Shareholders Approve Key Proposals at Meeting

On May 20, 2025, JPMorgan Chase held its Annual Meeting of Shareholders, where 85.21% of total shares were represented. During the meeting, shareholders elected 12 director nominees, all receiving at least 92.98% of the votes cast. Additionally, shareholders approved the advisory resolution on executive compensation and ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm for 2025. However, proposals for an independent board chairman and a report on the social impacts of transition finance were not approved.

JPMorgan Chase Holds Investor Day Presentation

On May 19, 2025, JPMorgan Chase & Co. held an Investor Day presentation to provide investors with insights into the firm’s various lines of business. The presentation included forward-looking statements, which are based on current management beliefs and expectations but are subject to significant risks and uncertainties. These statements are not incorporated into the firm’s filings under the Securities Act of 1933, and actual results may differ from those projected.