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Category: Stock Market and JP Morgan Chase
Date: 15 October 2019 Stock Price: $121.16 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of JP Morgan Chase on of the oldest financial institutions in the world and a market capital of almost $375 billion.
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About JP Morgan Chase
JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States. With a history dating back over 200 years, here's where we stand today:
- We are a leading global financial services firm with assets of $2.6 trillion.
- We have a presence in over 100 markets.
- We have over 250,000 employees.
- We serve millions of consumers, small businesses and many of the world's most prominent corporate, institutional and government clients.
- We are a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management.
- Our stock is a component of the Dow Jones Industrial Average.
Overview of JP Morgan Chase's latest earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenue: $29.341 billion (up from $27.260 billion for the same period of the previous year)
- Revenues increased by 8% over the last 12 months
- Total non interest expenses: $16.422 billion (up from $15.623 billion for the same period of the previous year)
- Operating costs and expenses increased by 5% over the last 12 months
- Net income: $9.080 billion (up from $8.380 billion for the same period of the previous year)
- Diluted earnings per share: $2.68 (up from $2.34 for the same period of the previous year)
- PE ratio of JP Morgan Chase: 11.3
- Dividend declared: $0.90
- Dividend yield: 2.90%
- Diluted weighted-average shares outstanding: 3.207 billion (down from 3.394 billion for the same period of the previous year)
- Book value per share: $75.24 (up from $69.52 for the same period of the previous year)
- Cash and cash equivalents: $21.215 billion
- Cash and cash equivalents per share: $6.62
- Cash and cash equivalents makes up 5.45% of JP Morgan Chase's market capital
- Cash and cash equivalents makes up 0.77% of JP Morgan Chase's total assets
- Loans net of allowances for losses: $931.9833 billion
- Loans net of allowances for losses 33.7% of JP Morgan Chase's total assets
- Goodwill: $53.078 billion
- Goodwill makes up 1.92% of JP Morgan Chase's total assets
- Goodwill per stock: $16.55
- Stockholders equity in JP Morgan Chase: $264.348 billion
- Stockholders equity per share: $82.42
- So JP Morgan Chase is trading a 1.47 times its stockholders equity which is within the expected range of between 2 and 4 which most firms tend to trade at.
JP Morgan Chase's management commentary on the results
Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase delivered record revenue this quarter, demonstrating broad-based strength and the resilience of our business model despite a more challenging interest rate backdrop. In Consumer & Community Banking, we had strong deposit and client investment asset growth. Our consumer lending businesses benefited from our continued investments and a favorable environment for borrowers, which helped drive healthy volumes in Home Lending and Auto and strong loan growth in Card.”
Dimon added: “We had record third quarter IB fees with particularly strong performance in DCM and ECM, and year-to-date we maintained our #1 global ranking with share gains across products and regions. Markets performance was solid, reflecting improved client activity – particularly in Fixed Income. Commercial Banking turned in a solid performance with continued momentum in investment banking and treasury services. And in Asset & Wealth Management, both AUM and client assets were a record helped by strong net inflows into long-term and liquidity products.” Dimon concluded: “In the U.S. economy, GDP growth has slowed slightly. The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels. This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade. Regardless of the operating environment, JPMorgan Chase will continue to serve our customers, clients and communities globally, while investing in innovation, talent, technology, security and controls.”
Dimon added: “We had record third quarter IB fees with particularly strong performance in DCM and ECM, and year-to-date we maintained our #1 global ranking with share gains across products and regions. Markets performance was solid, reflecting improved client activity – particularly in Fixed Income. Commercial Banking turned in a solid performance with continued momentum in investment banking and treasury services. And in Asset & Wealth Management, both AUM and client assets were a record helped by strong net inflows into long-term and liquidity products.” Dimon concluded: “In the U.S. economy, GDP growth has slowed slightly. The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels. This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade. Regardless of the operating environment, JPMorgan Chase will continue to serve our customers, clients and communities globally, while investing in innovation, talent, technology, security and controls.”
JP Morgan Chase (NYSE: JPM) stock price history
The image below, obtained from Google, shows the stock price history JP Morgan Chase over the last 5 years. And it's been a very good time for JP Morgan Chase stockholders. 5 years ago the stock was trading at around $56.20 a stock and its currently trading at $121.16 a stock. That's a impressive return of 115.58% returned to JP Morgan Chase stockholders over the last 5 years.
The stock of JP Morgan Chase is trading at very close to its 52 week high of $121.59 than it is to its 52 week low which to us is an indication that the momentum and sentiment of JP Morgan Chase stock is very positive at the moment.
The stock of JP Morgan Chase is trading at very close to its 52 week high of $121.59 than it is to its 52 week low which to us is an indication that the momentum and sentiment of JP Morgan Chase stock is very positive at the moment.
Recent coverage of JP Morgan Chase
The extract below discusses the latest regarding JP Morgan Chase as obtained from TheStreet.com
JPMorgan Chase & Co. (JPM - Get Report) posted better-than-expected third-quarter earnings Tuesday as revenue from its fixed income division, as well as net interest income, surprised to the upside. JPMorgan said earnings for the three months ended in September came in at $2.68 per share, up 14.5% from the same period last year and 23 cents ahead of the Street consensus forecast. Group managed revenues were pegged at $29.3 billion, the bank said, easily topping analysts' estimates of a $27.8 billion tally.
Net interest income, JPMorgan said, rose 2.12% from last year to $14.4 billion, a figure it expects to see coming int at $57.5 billion for the full year, while revenues from its fixed income division rose 25% to $3.6 billion, smashing the Street forecast of $3.09 billion. That offset a 5% slide in equity market revenues, which fell to $1.5 billion. "We had record third quarter investment banking fees with particularly strong performance in debt capital and equity capital markets, and year-to-date we maintained our #1 global ranking with share gains across products and regions," said CEO Jamie Dimon. "Markets performance was solid, reflecting improved client activity - particularly in fixed income."
Read the full article here
JPMorgan Chase & Co. (JPM - Get Report) posted better-than-expected third-quarter earnings Tuesday as revenue from its fixed income division, as well as net interest income, surprised to the upside. JPMorgan said earnings for the three months ended in September came in at $2.68 per share, up 14.5% from the same period last year and 23 cents ahead of the Street consensus forecast. Group managed revenues were pegged at $29.3 billion, the bank said, easily topping analysts' estimates of a $27.8 billion tally.
Net interest income, JPMorgan said, rose 2.12% from last year to $14.4 billion, a figure it expects to see coming int at $57.5 billion for the full year, while revenues from its fixed income division rose 25% to $3.6 billion, smashing the Street forecast of $3.09 billion. That offset a 5% slide in equity market revenues, which fell to $1.5 billion. "We had record third quarter investment banking fees with particularly strong performance in debt capital and equity capital markets, and year-to-date we maintained our #1 global ranking with share gains across products and regions," said CEO Jamie Dimon. "Markets performance was solid, reflecting improved client activity - particularly in fixed income."
Read the full article here
JP Morgan Chase (NYSE: JPM) latest stock valuation
So what is JP Morgan Chase stock worth based on the release of their latest earnings report? Based on JP Morgan Chase latest earnings report our valuation models provide a target (full value) price for JP Morgan Chase stock at $131.20 a stock. We therefore believe that the stock of JP Morgan Chase is undervalued at its current price of $121.16
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $131.20 Therefore we believe a good entry point into JP Morgan Chase's stock is at $118 or below.
Earlier today we covered JP Morgan Chase's 2nd quarter 2019 earnings report and valued the group at $127.60. So our valuation for the stock of JP Morgan Chase increased by almost $5 based on their 3rd quarter 2019 earnings report
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $131.20 Therefore we believe a good entry point into JP Morgan Chase's stock is at $118 or below.
Earlier today we covered JP Morgan Chase's 2nd quarter 2019 earnings report and valued the group at $127.60. So our valuation for the stock of JP Morgan Chase increased by almost $5 based on their 3rd quarter 2019 earnings report
Next earnings release date for JP Morgan Chase
It is expected that JP Morgan Chase (NYSE: JPM) 4th quarter 2019 earnings report will be released in the middle of January 2020