JPMorgan Chase & Co.
JPMorgan Chase & Co. Fundamental Analysis
JPMorgan Chase & Co. (JPM) shows strong financial fundamentals with a PE ratio of 15.17, profit margin of 20.33%, and ROE of 15.93%. The company generates $273.7B in annual revenue with strong year-over-year growth of 18.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze JPM's fundamental strength across five key dimensions:
Efficiency Score
WeakJPM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJPM trades at attractive valuation levels.
Growth Score
ExcellentJPM delivers strong and consistent growth momentum.
Financial Health Score
ModerateJPM shows balanced financial health with some risks.
Profitability Score
ExcellentJPM achieves industry-leading margins.
Key Financial Metrics
Is JPM Expensive or Cheap?
P/E Ratio
JPM trades at 15.17 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JPM's PEG of -16.16 indicates potential undervaluation.
Price to Book
The market values JPMorgan Chase & Co. at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.69 times EBITDA. This is generally considered low.
How Well Does JPM Make Money?
Net Profit Margin
For every $100 in sales, JPMorgan Chase & Co. keeps $20.33 as profit after all expenses.
Operating Margin
Core operations generate 25.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.93 in profit for every $100 of shareholder equity.
ROA
JPMorgan Chase & Co. generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
JPMorgan Chase & Co. generates strong operating cash flow of $98.46B, reflecting robust business health.
Free Cash Flow
JPMorgan Chase & Co. generates strong free cash flow of $98.46B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $36.17 in free cash annually.
FCF Yield
JPM converts 11.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
14.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How JPM Stacks Against Its Sector Peers
| Metric | JPM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.17 | 18.86 | Better (Cheaper) |
| ROE | 15.93% | 847.00% | Weak |
| Net Margin | 20.33% | 4202.00% | Weak |
| Debt/Equity | 1.38 | 0.91 | Weak (High Leverage) |
| Current Ratio | 14.85 | 667.17 | Strong Liquidity |
| ROA | 1.29% | -21543.00% (disorted) | Weak |
JPM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews JPMorgan Chase & Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
119.37%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
79.91%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-1250.86%
Industry Style: Value, Dividend, Cyclical
Declining