|
Related Topics
|
Category: Stock Market and JP Morgan Chase
Date: 14 January 2020 Stock Price: $140.21 We take a look at the 4th 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 $440 billion.
|
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: $29.2 billion (up from $26.804 billion for the same period of the previous year)
- Revenues increased by 8.9% over the last 12 months
- Total non interest expenses: $16.339 billion (up from $15.720 billion for the same period of the previous year)
- Operating costs and expenses increased by 3.9% over the last 12 months
- Net income: $8.520 billion (up from $7.066 billion for the same period of the previous year)
- Diluted earnings per share: $2.57 (up from $1.98 for the same period of the previous year)
- PE ratio of JP Morgan Chase: 13.6
- Dividend declared: $0.90
- Dividend yield: 2.6%
- Diluted weighted-average shares outstanding: 3.148 billion (down from 3.347 billion for the same period of the previous year)
- Book value per share: $75.98 (up 8% from $70.35 for the same period of the previous year)
- Cash and cash equivalents: $21.704 billion
- Cash and cash equivalents per share: $6.89
- Cash and cash equivalents makes up 4.9% of JP Morgan Chase's market capital
- Cash and cash equivalents makes up 0.80% of JP Morgan Chase's total assets
- Loans net of allowances for losses: $946.646 billion
- Loans net of allowances for losses 35.2% of JP Morgan Chase's total assets
- Goodwill: $53.341 billion
- Goodwill makes up 1.98% of JP Morgan Chase's total assets
- Goodwill per stock: $16.94
- Stockholders equity in JP Morgan Chase: $261.330 billion
- Stockholders equity per share: $83.04
- So JP Morgan Chase is trading a 1.69 times its stockholders equity which is outside 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 produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income. While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year. The U.S. consumer continues to be in a strong position and we see the benefits of this across our consumer businesses. In Consumer & Community Banking, average deposits grew at 5%, somewhat aided by lower short-term rates, and we continued to add customers in new and existing markets, and deepen our customer relationships by offering great deposit, investment and lending products. The robust holiday season was reflected in our card sales volumes and loan balances, up 10% and 8%, respectively.”
Dimon added: “The Corporate & Investment Bank generated record fourth quarter revenue - including for the Markets business, which rebounded from a challenging prior year. For the quarter, Global Investment Banking fees were up slightly from a strong performance last year, and for the full year we grew our IB fee wallet share to its highest level in a decade, maintaining our #1 rank for the 11th consecutive year. Commercial Banking earned a record $2.7 billion of IB revenue in 2019 and continued to add new client relationships on the back of our investments in bankers and technology in the U.S. and abroad. In Asset & Wealth Management, we grew loans and deposits at a healthy pace, and for the full-year, we brought in record long-term net flows of $100 billion.”
Dimon added: “The Corporate & Investment Bank generated record fourth quarter revenue - including for the Markets business, which rebounded from a challenging prior year. For the quarter, Global Investment Banking fees were up slightly from a strong performance last year, and for the full year we grew our IB fee wallet share to its highest level in a decade, maintaining our #1 rank for the 11th consecutive year. Commercial Banking earned a record $2.7 billion of IB revenue in 2019 and continued to add new client relationships on the back of our investments in bankers and technology in the U.S. and abroad. In Asset & Wealth Management, we grew loans and deposits at a healthy pace, and for the full-year, we brought in record long-term net flows of $100 billion.”
Dimon concluded: “We continue to invest in and grow our businesses. For example, in 2019, we added over 70 new branches in 16 new markets, continued our Commercial Banking international expansion, and became the first U.S. bank to be approved for a majority-owned securities business in China. We continue to make large investments in technology, including AI, cloud, digital and payments, as well as other investments in innovation, talent, security and risk controls. These actions will help us continue to grow and serve our clients going forward. I am extremely proud of how we serve our customers, clients and communities globally - we stand by them in good times and in tough times, and work to earn their trust every single day.”
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 $55.90 a stock and its currently trading at $140.24 a stock. That's a impressive return of 150.08% 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 $141.10 than it is to its 52 week low of $98.09 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 $141.10 than it is to its 52 week low of $98.09 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 stronger-than-expected fourth quarter earnings Tuesday, thanks in part to a surge in fixed income trading, and said the U.S. consumer continues to be in a strong position heading into 2020. JPMorgan said earnings for the three months ending in December came in at $2.57 per share, up 29.8% from the same period last year and well ahead of the Street consensus forecast of $2.35 per share. Group managed revenues, JPMorgan said, rose 9% to $29.2 billion, against topping analysts' forecasts of a $27.96 billion tally.
Total revenues from JPMorgan's markets business rose 56% from last year to $5 billion, the bank said, with equity markets revenue rising 15% to $1.5 billion and fixed income trading revenues surging 78% to $3.4 billion. Net interest income was pegged at $14.3 billion, a 3% slip from last year, while average total loans fell 1%.
“JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income," said CEO Jamie Dimon. "While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year."
Read the full article here
JPMorgan Chase & Co. (JPM) - Get Report posted stronger-than-expected fourth quarter earnings Tuesday, thanks in part to a surge in fixed income trading, and said the U.S. consumer continues to be in a strong position heading into 2020. JPMorgan said earnings for the three months ending in December came in at $2.57 per share, up 29.8% from the same period last year and well ahead of the Street consensus forecast of $2.35 per share. Group managed revenues, JPMorgan said, rose 9% to $29.2 billion, against topping analysts' forecasts of a $27.96 billion tally.
Total revenues from JPMorgan's markets business rose 56% from last year to $5 billion, the bank said, with equity markets revenue rising 15% to $1.5 billion and fixed income trading revenues surging 78% to $3.4 billion. Net interest income was pegged at $14.3 billion, a 3% slip from last year, while average total loans fell 1%.
“JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income," said CEO Jamie Dimon. "While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year."
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 $142.30 a stock (up strongly from our 3rd quarter 2019 earnings report valuation of JP Morgan Chase). We therefore believe that the stock of JP Morgan Chase is fully valued at its current price of $140.21
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 $142.30 Therefore we believe a good entry point into JP Morgan Chase's stock is at $128 or below.
We expect the stock of JP Morgan Chase to continue to trade close to its current prce in coming weeks and months as it is close to full value.
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 $142.30 Therefore we believe a good entry point into JP Morgan Chase's stock is at $128 or below.
We expect the stock of JP Morgan Chase to continue to trade close to its current prce in coming weeks and months as it is close to full value.
Next earnings release date for JP Morgan Chase
It is expected that JP Morgan Chase (NYSE: JPM) 1st quarter 2020 earnings report will be released in the middle of April 2020