JP Morgan Profitability Analysis

JPM
 Stock
  

USD 122.13  1.99  1.66%   

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.
  
The value of Price to Sales Ratio is estimated to pull down to 3.73. The value of Return on Sales is estimated to pull down to 0.44. 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 1.94 Billion. Net Income Per Employee is expected to hike to about 192.4 K this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (86.2 M).

JP Morgan Revenues

124.22 Billion

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
358.2 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.

JP Morgan Chase Beta vs. Number of Shares Shorted 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 number of shares shorted category among related companies. It is currently regarded as number one stock in beta category among related companies . The ratio of Number of Shares Shorted to Beta for JP Morgan Chase is about  16,118,182 . Comparative valuation analysis is a catch-all model that can be used if you cannot value JP Morgan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for JP Morgan'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 JP Morgan's earnings, one of the primary drivers of an investment's value.

JP Morgan Beta vs. Number of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
JP Morgan 
Shares Shorted 
 = 
Shorted by Public 
by Institutions 
17.73 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
JP Morgan 
Beta 
 = 
Covariance 
Variance 
1.1
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

JP Morgan Beta Comparison

JP Morgan is currently under evaluation in beta category among related companies.

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 2022
Accumulated Other Comprehensive Income-84 M-86.2 M
Consolidated Income48.3 B41.2 B
Net Income46.5 B39.3 B
Net Income Common Stock46.5 B39.3 B
Net Income to Non Controlling Interests1.8 B1.9 B
Operating Income50.3 B49.8 B
Income Tax Expense11.2 B10.9 B
Net Income Per Employee178.3 K192.4 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 278494 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

The ability to find closely correlated positions to JP Morgan could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace JP Morgan 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 JP Morgan - 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 JP Morgan Chase to buy it.
The correlation of JP Morgan 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 JP Morgan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if JP Morgan 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 JP Morgan 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 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?

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Candy and Soda
Candy and Soda Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 11 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Candy and Soda Theme or any other thematic opportunities.
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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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.
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To fully project JP Morgan's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the 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. 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.