JPMorgan Chase Profitability Analysis

JPM Stock  USD 192.66  2.36  1.24%   
Based on the measurements of profitability obtained from JPMorgan Chase's financial statements, JPMorgan Chase's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess JPMorgan Chase's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1990-03-31
Previous Quarter
13.2 B
Current Value
9.3 B
Quarterly Volatility
3.5 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 18th of March 2024, Price To Sales Ratio is likely to drop to 1.80. In addition to that, Operating Cash Flow Sales Ratio is likely to drop to 0.07. At this time, JPMorgan Chase's Change To Netincome is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.720.3976
Way Up
Pretty Stable
For JPMorgan Chase profitability analysis, we use financial ratios and fundamental drivers that measure the ability of JPMorgan Chase to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well JPMorgan Chase Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between JPMorgan Chase's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of JPMorgan Chase Co over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is JPMorgan Chase'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 JPMorgan Chase. If investors know JPMorgan 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 JPMorgan Chase 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
(0.15)
Dividend Share
4.1
Earnings Share
16.23
Revenue Per Share
49.687
Quarterly Revenue Growth
0.111
The market value of JPMorgan Chase is measured differently than its book value, which is the value of JPMorgan that is recorded on the company's balance sheet. Investors also form their own opinion of JPMorgan Chase's value that differs from its market value or its book value, called intrinsic value, which is JPMorgan Chase'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 JPMorgan Chase's market value can be influenced by many factors that don't directly affect JPMorgan Chase'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 JPMorgan Chase's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Chase is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Chase'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.

JPMorgan Chase Target Price vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining JPMorgan Chase's current stock value. Our valuation model uses many indicators to compare JPMorgan Chase value to that of its competitors to determine the firm's financial worth.
JPMorgan Chase Co is currently regarded as number one stock in operating margin category among related companies. It is currently regarded as number one stock in target price category among related companies fabricating about  534.84  of Target Price per Operating Margin. . Comparative valuation analysis is a catch-all model that can be used if you cannot value JPMorgan Chase by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JPMorgan Chase's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the JPMorgan Chase's earnings, one of the primary drivers of an investment's value.

JPMorgan Target Price vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

JPMorgan Chase

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.36 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

JPMorgan Chase

 = 
193.88

JPMorgan Target Price Comparison

JPMorgan Chase is currently under evaluation in target price category among related companies.

JPMorgan Chase Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in JPMorgan Chase, profitability is also one of the essential criteria for including it into their portfolios because, without profit, JPMorgan Chase will eventually generate negative long term returns. The profitability progress is the general direction of JPMorgan Chase's change in net profit over the period of time. It can combine multiple indicators of JPMorgan Chase, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-10.4 B-9.9 B
Operating Income61.6 B64.7 B
Net Income49.6 B52 B
Income Tax Expense12.1 B12.7 B
Income Before Tax61.6 B64.7 B
Total Other Income Expense Net61.6 B64.7 B
Net Income Applicable To Common Shares41.3 B43.3 B
Net Income From Continuing Ops49.6 B32.8 B
Net Interest Income89.3 B62.9 B
Interest Income170.6 B87.8 B
Change To Netincome26.7 B28.1 B
Net Income Per E B T 0.80  0.60 

JPMorgan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on JPMorgan Chase. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of JPMorgan Chase position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the JPMorgan Chase's important profitability drivers and their relationship over time.

JPMorgan Chase Profitability Trends

JPMorgan Chase profitability trend refers to the progression of profit or loss within a business. An upward trend means that JPMorgan Chase's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is JPMorgan Chase's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

JPMorgan Chase Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between JPMorgan Chase different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards JPMorgan Chase in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down JPMorgan Chase's future profitability.

Use JPMorgan Chase in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if JPMorgan Chase position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JPMorgan Chase will appreciate offsetting losses from the drop in the long position's value.

JPMorgan Chase Pair Trading

JPMorgan Chase Co Pair Trading Analysis

The ability to find closely correlated positions to JPMorgan Chase could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace JPMorgan Chase when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back JPMorgan Chase - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling JPMorgan Chase Co to buy it.
The correlation of JPMorgan Chase is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as JPMorgan Chase moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if JPMorgan Chase moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for JPMorgan Chase can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your JPMorgan Chase position

In addition to having JPMorgan Chase in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether JPMorgan Chase is a strong investment it is important to analyze JPMorgan Chase's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact JPMorgan Chase's future performance. For an informed investment choice regarding JPMorgan Stock, refer to the following important reports:

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To fully project JPMorgan Chase's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of JPMorgan Chase at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include JPMorgan Chase's income statement, its balance sheet, and the statement of cash flows.
Potential JPMorgan Chase investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although JPMorgan Chase investors may work on each financial statement separately, they are all related. The changes in JPMorgan Chase's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on JPMorgan Chase's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.