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JPMorgan Chase & Co JPM

Morningstar Rating
$184.38 +0.93 (0.51%)
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Company Report

NYCB Was Uniquely Risky; We Would Not Read Too Much Into the Entire Banking Sector

Our thesis on the U.S. banks following the Silicon Bank fallout was that all of the banks we covered, except for First Republic (which we downgraded to a $3 fair value estimate on March 20, 2023, and a $0 fair value on April 27, 2023), would be able to weather the storm. We believed that banks in trouble were in uniquely risky positions. We believe this thesis has largely held up, and sorting through banks based on their unique risk profiles remains necessary and valuable. To the extent that the market is selling off all banks because of what has happened to NYCB, we think there could be opportunities once again while acknowledging the significant time horizon risk (how long does it take for the banks to prove to the market they are fine) and the choppy waters that could occur in the meantime (we expect more commercial real estate related loan losses in the future).

Price vs Fair Value

JPM is trading within a range we consider fairly valued.
Price
$184.38
Fair Value
$238.00
Uncertainty
Medium
1-Star Price
$559.70
5-Star Price
$974.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

JPMorgan has emerged as the most dominant bank in the United States. With leading share in many aspects of banking and financial services, the bank should be in an advantaged position for years to come.

Bears

While higher interest rates are great, they are a double edged sword. If the higher NII and solid economy narrative ever begins to reverse, banking profitability and sentiment will suffer.

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News

Trading Information

Previous Close Price
$183.45
Day Range
$182.96185.20
52-Week Range
$123.11185.20
Bid/Ask
$184.13 / $184.30
Market Cap
$531.08 Bil
Volume/Avg
6.1 Mil / 9.3 Mil

Key Statistics

Price/Earnings (Normalized)
11.10
Price/Sales
3.50
Dividend Yield (Trailing)
2.22%
Dividend Yield (Forward)
2.28%
Total Yield
4.07%

Company Profile

JPMorgan Chase is one of the largest and most complex financial institutions in the United States, with nearly $4 trillion in assets. It is organized into four major segments--consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan operates, and is subject to regulation, in multiple countries.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
309,926

Competitors

Valuation

Metric
JPM
C
WFC
Price/Earnings (Normalized)
11.1010.7610.60
Price/Book Value
1.770.561.18
Price/Sales
3.501.372.46
Price/Cash Flow
7.854.155.80
Price/Earnings
JPM
C
WFC

Financial Strength

Metric
JPM
C
WFC
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
JPM
C
WFC
Return on Assets (Normalized)
1.29%0.41%1.04%
Return on Equity (Normalized)
17.36%5.31%12.17%
Return on Invested Capital (Normalized)
Return on Assets
JPM
C
WFC
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Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BAC
Bank of America CorpJxd$270.1 Bil
WFC
Wells Fargo & CoGxp$195.8 Bil
HSBC
HSBC Holdings PLC ADRMtwc$145.7 Bil
RY
Royal Bank of CanadaWxhcb$136.1 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRWdmhl$119.8 Bil
TD
The Toronto-Dominion BankMwk$106.6 Bil
C
Citigroup IncMmf$105.2 Bil
UBS
UBS Group AGQsdkgy$91.9 Bil
SAN
Banco Santander SA ADRWplbbn$66.2 Bil

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