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Jpmorgan Chase & Co reports 12.2% Net Income growth in 2019

14 Jan 2020 • About Jpmorgan Chase & Co ($JPM) • By InTwits

Jpmorgan Chase & Co reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • In the last 5 years the company invested considerably less than D&A: $0m vs. $7,791m
  • The company has potentially unprofitable business model: ROIC is 4.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

The company's Revenue increased on 8.4%. During FY2015-FY2019 Revenue growth topped in FY2018 at 15.4%.

Net Income margin increased slightly on 0.87 pp from 24.7% to 25.6% in FY2019. During the last 5 years Net Income margin bottomed in FY2017 at 21.5% and was growing since that time.

Return on investment

The company operates at good ROE (14.9%) while ROIC is low (4.9%). ROIC showed almost no change in FY2019. ROE increased slightly on 1.6 pp from 13.3% to 14.9% in FY2019. ROIC grew at 0.34 pp per annum in the last 5 years. During FY2015-FY2019 ROE bottomed in FY2017 at 9.9% and was growing since that time.

Leverage (Debt)

Debt surged on 32.3% while cash decreased on 2.8%.

Jpmorgan Chase & Co has short term refinancing risk: cash is only 7.2% of short term debt.

Financial and operational results

FY ended 30 Nov -0001

Jpmorgan Chase & Co ($JPM) key annual financial indicators

mln. $201520162017201820192019/2018
Net Income24,44224,73324,44132,47436,43112.2%
Balance Sheet
Short Term Debt115,680125,574142,262158,390300,16489.5%
Long Term Debt330,530334,292310,161302,272309,3392.3%
Cash flow
Revenue growth-1.9%4.4%8.0%15.4%8.4%

Net Income Margin24.2%23.4%21.5%24.7%25.6%0.9%

Insider ownership0.4%
Revenue/Employee, th. $513

Peers in Banks

Below you can find Jpmorgan Chase & Co benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Development Securities(Investments) ($36JS)156.8%18.9%-48.8%40.1%
Corus Finance ($BD84)-99.5%13,313.3%10.4%12.9%
Bld Property Hldgs ($09GE)39.3%6.1%-0.2%8.5%
Sanctuary Housing ($BB21)5.3%7.2%0.3%5.5%
Housing Finance Corp ($68HB)9.1%10.9%8.2%3.0%
Median (14 companies)1.0%1.5%2.1%3.0%

Top companies by Gross margin, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Sanctuary Housing ($BB21)97.6%97.1%97.4%98.1%
Glh Hotels Ltd ($97KI)57.6%57.8%60.1%59.0%
Lewis(John)Partnership ($BD32)33.8%33.9%33.8%33.0%
Lewis(John) ($BC32)33.8%33.9%33.8%33.0%
Ashpol ($BC24)0.0%0.0%
Median (8 companies)33.8%32.7%31.9%16.5%

Top companies by EBITDA margin, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
T.H.F.C.(Indexed 2) ($90IL)97.9%97.1%96.2%96.4%
Housing Finance Corp ($68HB)97.9%97.1%96.2%96.4%
T.H.F.C.(Indexed) ($96JS)97.9%97.1%96.2%96.4%
T.H.F.C.(Social Housing Finance) ($96JP)97.9%97.1%96.2%96.4%
Bld Property Hldgs ($09GE)215.1%165.3%36.3%87.6%
Median (13 companies)44.3%39.7%29.2%52.7%

Top companies by CAPEX/Revenue, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Bld Property Hldgs ($09GE)59.2%84.6%53.0%55.6%
Sanctuary Housing ($BB21)60.0%31.0%33.3%42.3%
Mid Kent Water ($48HO)37.7%41.2%38.1%41.7%
Glh Hotels Ltd ($97KI)13.1%4.9%4.6%9.0%
Corus Finance ($BD84)9.6%6.6%5.7%
Median (13 companies)3.8%3.3%3.0%2.2%

Top companies by ROIC, %

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
Corus Finance ($BD84)-19.6%2.1%8.4%10.7%
Lewis(John) ($BC32)18.6%19.8%22.0%8.2%
Lewis(John)Partnership ($BD32)18.6%19.8%22.0%8.2%
Glh Hotels Ltd ($97KI)4.9%5.7%5.6%7.5%
Development Securities(Investments) ($36JS)7.4%5.1%0.2%6.1%
Median (43 companies)3.2%3.9%2.6%1.0%

Top companies by Net Debt / EBITDA

Top 5 FY2015 FY2016 FY2017 FY2018 FY2019
T.H.F.C.(Indexed 2) ($90IL)20.3x22.6x24.3x28.0x
T.H.F.C.(Indexed) ($96JS)20.3x22.6x24.3x28.0x
T.H.F.C.(Social Housing Finance) ($96JP)20.3x22.6x24.3x28.0x
Housing Finance Corp ($68HB)20.3x22.6x24.3x28.0x
West Bromwich B.S. ($WBS)2.3x4.9x10.5x12.7x
Median (13 companies)3.1x4.0x4.6x8.6x