JP Morgan Story

JMP -- USA Stock

USD 5.76 0.06 1.05%

Macroaxis Story

It looks like Freedom Holding will continue to recover much faster as its share price surged up 0.65% today to JP Morgan's 44.8692%. As many rational traders are trying to avoid financial services space, it makes sense to recap JMP Group a little further and understand how it stands against Freedom Holding and other similar entities. We are going to focus on some of the competitive aspects of both JP Morgan and Freedom.

Published over a week ago

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What is our outlook on JP Morgan (NYSE:JMP) and Freedom (NASDAQ:FRHC)?

By analyzing existing technical and fundamental indicators between JP Morgan and Freedom, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Freedom with a short position in JP Morgan. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. JP Morgan has an asset utilization ratio of 9.03 percent. This suggests that the company is making $0.0903 for each dollar of assets. An increasing asset utilization means that JMP Group is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as JP Morgan or Freedom is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING JP Morgan dividends

A dividend is the distribution of a portion of JP Morgan earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. JP Morgan dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. JP Morgan one year expected dividend income is about $0.04 per share.

As of 2nd of March 2021, Dividends per Basic Common Share is likely to grow to 0.24, while Payment of Dividends and Other Cash Distributions is likely to drop (3.4 M).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-3.2 M	-3.4 M
Dividend Yield	0.06	0.06
Dividends per Basic Common Share	0.20	0.24

Investing in stocks that pay dividends, such as stock of JMP Group, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in JP Morgan must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for JP Morgan. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is JP Morgan's Liquidity

JP Morgan financial leverage refers to using borrowed capital as a funding source to finance JMP Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JP Morgan financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between JP Morgan's total debt and its cash.

Correlation Between JP Morgan and Freedom Holding Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding JP Morgan together with similar or unrelated positions with a negative correlation. For example, you can also add Freedom Holding to your portfolio. If Freedom Holding is not perfectly correlated to JP Morgan it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When JP Morgan for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between JMP and FRHC for more information.

What is driving JP Morgan Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check JP Morgan revenue. Based on the latest financial disclosure, JMP Group reported 114.8 M of revenue. This is 98.98% lower than that of the Financial Services sector and 97.78% lower than that of the Capital Markets industry. The revenue for all United States stocks is 98.78% higher than that of the firm. As for Freedom Holding we see revenue of 233.66 M, which is 95.49% lower than that of the Capital Markets

Sector

5.2 B

JMP	114.8 Million	2.08
Sector	5.18 Billion	93.7
FRHC	233.66 Million	4.23

Our take on today JP Morgan roll up

The standard deviation is down to 5.88 as of today. JMP Group has relatively low volatility with skewness of 6.27 and kurtosis of 46.09. However, we advise all investors to independently investigate JMP Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on JP Morgan

Although other companies within the capital markets industry are still a little expensive, even after the recent corrections, JP Morgan may offer a potential longer-term growth to insiders. In closing, as of the 20th of February 2021, our analysis shows that JP Morgan slowly supersedes the market. The firm is overvalued and projects below average probability of distress for the next 2 years. However, our current 30 days 'Buy-Sell' recommendation on the firm is Strong Buy.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of JMP Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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