JP Morgan Profitability Analysis

JPM -  USA Stock  

USD 157.68  0.41  0.26%

For JP Morgan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of JP Morgan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well JP Morgan Chase utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between JP Morgan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of JP Morgan Chase over time as well as its relative position and ranking within its peers. Please see Risk vs Return Analysis.

Search Current Profitability Trends 

 
Refresh
Return on Sales is expected to hike to 0.32 this year, although the value of Price to Sales Ratio will most likely fall to 3.27. JP Morgan Net Income to Non Controlling Interests is relatively stable at the moment as compared to the past year. The company's current value of Net Income to Non Controlling Interests is estimated at 1.87 Billion. Income Tax Expense is expected to hike to about 8.1 B this year, although the value of Operating Income will most likely fall to nearly 50.6 B.

JP Morgan Revenues

122.07 BillionShare
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 Chase underlying business (such as 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.

JP Morgan Chase Short Ratio vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining JP Morgan's current stock value. Our valuation model uses many indicators to compare JP Morgan value to that of its competitors to determine the firm's financial worth.
JP Morgan Chase is currently regarded as number one stock in price to sales category among related companies. It is rated second overall in short ratio category among related companies fabricating about  0.31  of Short Ratio per Price to Sales. The ratio of Price to Sales to Short Ratio for JP Morgan Chase is roughly  3.27 

JP Morgan Short Ratio vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
JP Morgan 
P/S 
 = 
MV Per Share 
Revenue Per Share 
3.70 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
JP Morgan 
Short Ratio 
 = 
Short Interest 
Average Trading Volume 
1.13 X
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.

JP Morgan Short Ratio Comparison

JP Morgan Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in JP Morgan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, JP Morgan will eventually generate negative long term returns. The profitability progress is the general direction of JP Morgan's change in net profit over the period of time. It can combine multiple indicators of JP Morgan, 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 2021
Accumulated Other Comprehensive IncomeB8.6 B
Consolidated Income29.1 B29.5 B
Net Income27.4 B27.6 B
Net Income Common Stock27.4 B27.6 B
Net Income to Non Controlling Interests1.7 B1.9 B
Operating Income52.9 B50.6 B
Income Tax Expense6.3 B8.1 B
Net Income Per Employee113.8 K101.2 K
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 260110 people.

JP Morgan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on JP Morgan. 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 JP Morgan 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 JP Morgan's important profitability drivers and their relationship over time.

JP Morgan Profitability Trends

JP Morgan profitability trend refers to the progression of profit or loss within a business. An upward trend means that JP Morgan'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 JP Morgan'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.

JP Morgan 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 JP Morgan different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards JP Morgan 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 JP Morgan's future profitability.

Use JP Morgan 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 JP Morgan 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 JP Morgan will appreciate offsetting losses from the drop in the long position's value.

JP Morgan Pair Trading

JP Morgan Chase Pair Trading Analysis

Correlation analysis and pair trading evaluation for JP Morgan and Credit Suisse Group. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

Use Investing Themes to Complement your JP Morgan position

In addition to having JP Morgan 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.

Did You Try This Idea?

Run Railroads Thematic Idea Now

Railroads
Railroads Theme
Companies involved in manufacturing and maintenance of freight railroads and passenger trains as well as providing railroad services to public. Railroads theme has 30 constituents.
View All  Next Launch Railroads
Please see Risk vs Return 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for JP Morgan Stock analysis

When running JP Morgan Chase price analysis, check to measure JP Morgan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy JP Morgan is operating at the current time. Most of JP Morgan's value examination focuses on studying past and present price action to predict the probability of JP Morgan's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move JP Morgan's price. Additionally, you may evaluate how the addition of JP Morgan to your portfolios can decrease your overall portfolio volatility.
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
To fully project JP Morgan's future profitability" href="/future-stock-price/JPM">future profitability, investors should examine all historical financial statements" href="/financial-statements/JPM">financial statements. These statements provide investors with a comprehensive snapshot of the financial position" href="/financial-statements/JPM">financial position of JP Morgan 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" href="/financial-statements/JPM">financial statements. These documents include JP Morgan's income statement, its balance sheet, and the statement of cash flows.
Potential JP Morgan investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although JP Morgan investors may work on each financial statement separately, they are all related. The changes in JP Morgan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on JP Morgan'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.