SuperworthJPMorgan Chase & Co. JPM
- Market cap
- $876.1B
- PE
- 14.1×
- 10y median 12.7×
- Forward PE
- Revenue, 12 months
- $199.4B
- +14% on a year ago
- Net margin
- 32.6%
A bank the market stopped treating like a bank
Most of the return came from the re-rating, not the earnings
The market pays more than twice book value
A bank is mostly loans and deposits. Its book value is what it would be worth if it sold everything it owns and paid off everything it owes. JPM trades at about 2.4 times book. That is higher than on nine in ten days of the last decade, when the median was 1.5. The reason is profit: it earns about 17 percent a year on that book. This one, the market thinks, keeps growing.
Earnings rose 39 percent in three years
Reported earnings per share for the last four quarters were 23.34 dollars, up from 16.75 in the four quarters to September 2023. That is about 39 percent in three years. Solid growth, but far short of what the stock did.
The stock more than doubled
The share price rose about 130 percent in three years, while earnings rose 39. The gap is not profit. It is the higher price people now pay for each dollar of profit. The price also outran the payout, so the dividend yields about 1.8 percent over the last year, near its ten year low. The stock is about 9 percent below its August 12 high, a sign the multiple can shrink too.
The market now pays 14 times earnings, not 8
The PE is the price divided by a year of earnings. It bottomed at 8.1 in October 2023 and is about 14 now, higher than on about seven in ten days of the last decade. That is above its own ten year median of 12.7 and above the 12.1 median of its industry peers.
The latest year makes the case for the premium
The hope is that the bank has earned its higher multiple. Earnings per share rose 19.8 percent in the year to June. Operating margin, the share of revenue left after costs, is 42.1 percent, higher than on about four in five days of the last ten years. In September the bank raised its quarterly dividend 10 percent, to 1.65 dollars.
The best quarter had one-off help
The fear is that one-offs flattered the best year. Second quarter earnings of 7.70 dollars a share, the highest on this chart, included gains on its Visa shares and other investments. Without them the bank says it earned 6.14. Analysts expect 24.33 of adjusted earnings over the next twelve months, only about 5 percent more than the last four quarters, which include those gains.
Now the earnings have to keep up
At about 14 times the next twelve months of expected earnings, the multiple sits above its ten year median of 12.3. At that median, the same earnings would mean a price about 10 percent lower. Before late September the line is rebuilt from today's estimates. Results arrive October 13, with 5.90 a share expected. Growth without one-offs would back the premium. A slip would put it in question.
What has happened lately
- JPMorgan Chase, Chase adds Invest Your Points, letting cardholders move rewards into J.P. Morgan accountsLinks the card franchise to wealth management, giving Ultimate Rewards balances a path into fee-generating investment accounts.
- JPMorganChase, JPMorganChase declares increased quarterly common stock dividend of $1.65 per shareThe quarterly common dividend rises from $1.50 to $1.65 per share, a 10% increase that lifts the firm's ongoing capital return run rate.
- JPMorgan Chase, JPMorgan Chase raises housing commitment to more than $750 billion deployed through 2035About a 40% increase in housing capital deployment over the next decade, including a planned rise in mortgage lending volume.
- JPMorgan Chase, JPMorgan Chase posts record second-quarter net income of $21.2 billion, or $7.70 per shareManaged revenue of $58.0B and net income of $16.9B excluding significant items set the base for full-year 2026 earnings.
Headlines link to the original source.
Charts
Financials
| Income statement | Q4 FY23 | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $38.6B | $41.9B | $50.2B | $42.7B | $42.8B+11% | $45.3B+8% | $44.9B−11% | $46.4B+9% | $45.8B+7% | $49.8B+10% | $57.3B+28% | |
| SG&A | $13.1B | $14.5B | $14.2B | $14.1B | $13.8B+5% | $15.7B+8% | $15B+6% | $15B+7% | $14.6B+6% | $21.4B+36% | $21.4B+43% |
| $11.3B | $17.3B | $23.4B | $17B | $17.4B+53% | $18.4B+6% | $18.3B−22% | $18.7B+10% | $17.2B−1% | $20.5B+11% | $27.5B+51% | |
| Interest expense | $23.3B | $24.4B | $25.8B | $27B | $24.2B+4% | $23.6B−3% | $25B−3% | $25.5B−6% | $23.8B−2% | $23.8B+1% | $25.1B+0% |
| Pre-tax income | $11.3B | $17.3B | $23.4B | $17B | $17.4B+53% | $18.4B+6% | $18.3B−22% | $18.7B+10% | $17.2B−1% | $20.5B+11% | $27.5B+51% |
| $2B | $3.9B | $5.3B | $4.1B | $3.4B+67% | $3.8B−3% | $3.3B−38% | $4.3B+7% | $4.1B+23% | $4B+6% | $6.4B+93% | |
| Net income | $9.3B | $13.4B | $18.1B | $12.9B | $14B+51% | $14.6B+9% | $15B−17% | $14.4B+12% | $13B−7% | $16.5B+13% | $21.2B+41% |
| $3.04 | $4.44 | $6.12 | $4.37 | $4.81+58% | $5.07+14% | $5.24−14% | $5.07+16% | $4.63−4% | $5.94+17% | $7.70+47% | |
| 2.9B | 2.9B | 2.9B | 2.9B | 2.8B−3% | 2.8B−3% | 2.8B−4% | 2.8B−3% | 2.8B−2% | 2.7B−4% | 2.7B−4% |
From each company's 10-Q and 10-K filings. Fiscal years are four fiscal quarters added up; balance sheet lines are as of the period's end. Growth is on the same period a year earlier.
Estimates
Next earnings report: .
Analyst consensus for the next eight quarters, with the range from the lowest to the highest estimate, is part of Superworth Pro.
Peers
Companies in Banks - Diversified within ten times JPMorgan Chase's size, closest in size first.
| Company | Market cap | PE | Its 10y median PE | Fwd PE | P/S | Revenue growth | Net margin |
|---|---|---|---|---|---|---|---|
| JPMJPMorgan Chase & Co. | $876.1B | 14.1× | 12.7× | — | +14% | 32.6% | |
| BACBank of America Corporation | $374.3B | 12.3× | 13.3× | — | +8% | 28.2% | |
| WFCWells Fargo & Company | $242.7B | 11.6× | 12.5× | — | +6% | 26.0% | |
| CCitigroup Inc. | $213.6B | 13.7× | 10.4× | — | +10% | 19.5% | |
| Peer median | $242.7B | 12.3× | 12.5× | — | +8% | 26.0% |
About
- Chief executive
- Jamie Dimon, since 2005Came with the Bank One merger in 2004, CEO since the end of 2005.
- Industry
- Banks - Diversified
- Sector
- Financial Services
- Left out
- Banks earn on their balance sheet: P/S, gross margin, free cash flow and EV/EBIT don't describe them.
Valuation data, not investment advice. Prices as of .