馃彟 JP MORGAN CHASE & CO: ANALYSIS 馃彟
JP Morgan [JPM] no needs introduction. Although banks are complex to assess, because their business is debt and carries the risk of default, JPM is one of the stronger financial institutions over the world. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM).
In 1-year sample, its average ROE was ± 13.73%, its normalized EPS was ± $16.46 USD and their Price to Book value was ± $107.53 USD. If a PB Ratio 1.5 is set as baseline and ROE as sensitivity measure, the potential spread price could be:
- Optimistic: ± $183 USD
- Neutral: ± $161 USD
- Pessimistic: ± $139 USD
Although it is not customary to value a stock using the PER, it is not impossible either. If a PER 9 is set as baseline and ROE as sensitivity measure, the potential spread price could be:
- Optimistic: ± $168 USD
- Neutral: ± $148 USD
- Pessimistic: ± $127 USD
The pros: JPM reported strong earnings growth, with net income up 32% year-over-year. Revenue also increased 13% year-over-year, driven by strong performance in the investment banking and asset management businesses., the credit quality remained strong, with the non-performing loan ratio at 0.3% and the capital levels were also strong, with the common equity tier 1 ratio at 12.8%. The cons: JPM increased 10% year-over-year, which weighed on earnings growth, concerns about the global economic outlook, increases competition from other large banks and financial technology companies and
JPM is subject to regulatory scrutiny, which could weigh on its earnings in the future.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
In 1-year sample, its average ROE was ± 13.73%, its normalized EPS was ± $16.46 USD and their Price to Book value was ± $107.53 USD. If a PB Ratio 1.5 is set as baseline and ROE as sensitivity measure, the potential spread price could be:
- Optimistic: ± $183 USD
- Neutral: ± $161 USD
- Pessimistic: ± $139 USD
Although it is not customary to value a stock using the PER, it is not impossible either. If a PER 9 is set as baseline and ROE as sensitivity measure, the potential spread price could be:
- Optimistic: ± $168 USD
- Neutral: ± $148 USD
- Pessimistic: ± $127 USD
The pros: JPM reported strong earnings growth, with net income up 32% year-over-year. Revenue also increased 13% year-over-year, driven by strong performance in the investment banking and asset management businesses., the credit quality remained strong, with the non-performing loan ratio at 0.3% and the capital levels were also strong, with the common equity tier 1 ratio at 12.8%. The cons: JPM increased 10% year-over-year, which weighed on earnings growth, concerns about the global economic outlook, increases competition from other large banks and financial technology companies and
JPM is subject to regulatory scrutiny, which could weigh on its earnings in the future.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
Copyright: Joel Padilla 2023
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