JP Morgan Beneish M Score

JPM
 Stock
  

USD 115.76  0.38  0.33%   

This module uses fundamental data of JP Morgan to approximate the value of its Beneish M Score. JP Morgan M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see JP Morgan Piotroski F Score and JP Morgan Altman Z Score analysis.
  
JP Morgan Long Term Debt is relatively stable at the moment as compared to the past year. The company's current value of Long Term Debt is estimated at 317.82 Billion. Issuance Repayment of Debt Securities is expected to hike to about 15.6 B this year, although the value of Total Debt will most likely fall to nearly 511.8 B. JP Morgan Revenue to Assets are relatively stable at the moment as compared to the past year. The company's current value of Revenue to Assets is estimated at 0.0439. Total Assets Per Share is expected to hike to 1,372 this year, although the value of Debt to Equity Ratio will most likely fall to 10.38.
At this time, it appears that JP Morgan Chase is an unlikely manipulator. The earnings manipulation may begin if JP Morgan's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by JP Morgan executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of JP Morgan's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.01
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset QualityN/AFocus
Expense Coverage0.98Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.98Focus
Depreciation Resistance0.94Focus
Net Sales Growth1.02Focus
Financial Leverage Condition0.99Focus

JP Morgan Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if JP Morgan's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues124.2 B121.6 B
Fairly Up
Increasing
Slightly volatile
Selling General and Administrative Expense66.1 B65.9 B
Slightly Up
Increasing
Slightly volatile
Net Cash Flow from Operations84.2 B78.1 B
Significantly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion7.8 B7.9 B
Fairly Down
Increasing
Slightly volatile
Total Assets3519.1 B3743.6 B
Notably Down
Increasing
Slightly volatile
Investments2579.4 B2634.9 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net24.6 B27.1 B
Moderately Down
Increasing
Slightly volatile
Trade and Non Trade Receivables94.2 B102.6 B
Significantly Down
Increasing
Slightly volatile
Total Liabilities3223.3 B3449.4 B
Significantly Down
Increasing
Slightly volatile
Total Debt511.8 B548.9 B
Significantly Down
Decreasing
Stable
Operating Income49.8 B50.3 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

JP Morgan Chase Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between JP Morgan's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards JP Morgan in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find JP Morgan's degree of accounting gimmicks and manipulations.

About JP Morgan Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

74.44 Billion

JP Morgan Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 74.44 Billion

JP Morgan Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as JP Morgan. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Trade and Non Trade Receivables67.73 B73.2 B72.86 B90.5 B102.57 B94.17 B
Revenues100.7 B108.78 B115.72 B119.95 B121.65 B124.22 B
Total Assets2,533.6 B2,622.53 B2,687.38 B3,384.76 B3,743.57 B3,519.11 B
Property Plant and Equipment Net14.16 B14.93 B25.81 B27.11 B27.07 B24.57 B
Depreciation Amortization and Accretion6.18 B7.79 B8.37 B8.61 B7.93 B7.84 B
Selling General and Administrative Expense53.44 B57.42 B60.18 B60.72 B65.87 B66.07 B
Total Liabilities2,277.91 B2,366.02 B2,426.05 B3,105.4 B3,449.44 B3,223.29 B
Total Debt494.8 B533.63 B516.09 B542.1 B548.94 B511.84 B
Operating Income41.19 B45.63 B50.45 B53.3 B50.31 B49.78 B
Net Cash Flow from Operations(10.83 B)15.61 B4.09 B(79.91 B)78.08 B84.25 B
Investments1,852.43 B2,080.23 B2,271.73 B2,686.11 B2,634.9 B2,579.42 B

JP Morgan ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, JP Morgan's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to JP Morgan's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About JP Morgan Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze JP Morgan Chase's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of JP Morgan using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of JP Morgan Chase based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
JPMorgan Chase Co. operates as a financial services company worldwide. JPMorgan Chase Co. was founded in 1799 and is headquartered in New York, New York. JP Morgan operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 278494 people.

JP Morgan Investors Sentiment

The influence of JP Morgan's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in JP Morgan. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to JP Morgan's public news can be used to forecast risks associated with investment in JP Morgan. The trend in average sentiment can be used to explain how an investor holding JP Morgan can time the market purely based on public headlines and social activities around JP Morgan Chase. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
JP Morgan's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for JP Morgan's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average JP Morgan's news discussions. The higher the estimate score, the more favorable is the investor's outlook on JP Morgan.

JP Morgan Implied Volatility

    
  30.96  
JP Morgan's implied volatility exposes the market's sentiment of JP Morgan Chase stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if JP Morgan's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that JP Morgan stock will not fluctuate a lot when JP Morgan's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards JP Morgan in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, JP Morgan's short interest history, or implied volatility extrapolated from JP Morgan options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as JP Morgan Chase using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please see JP Morgan Piotroski F Score and JP Morgan Altman Z Score analysis. Note that the JP Morgan Chase information on this page should be used as a complementary analysis to other JP Morgan's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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Is JP Morgan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of JP Morgan. If investors know JP Morgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about JP Morgan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.27
Market Capitalization
335.3 B
Quarterly Revenue Growth YOY
-0.096
Return On Assets
0.0104
Return On Equity
0.14
The market value of JP Morgan Chase is measured differently than its book value, which is the value of JP Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of JP Morgan's value that differs from its market value or its book value, called intrinsic value, which is JP Morgan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because JP Morgan's market value can be influenced by many factors that don't directly affect JP Morgan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between JP Morgan's value and its price as these two are different measures arrived at by different means. Investors typically determine JP Morgan value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JP Morgan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.