Jpmorgan Chase & Co revenue returned to growth in 2016: increased 4.4% vs. 1.9% decline a year earliner
13 Jan 2017 • About Jpmorgan Chase & Co (
$JPM) • By InTwits
Jpmorgan Chase & Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 4.1%
- It operates with high leverage: Net Debt/EBITDA is 8.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jpmorgan Chase & Co ($JPM) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 108,184 | 106,283 | 103,009 | 101,006 | 105,486 | 4.4% |
| Net Income | 21,284 | 17,923 | 21,745 | 24,442 | 24,733 | 1.2% |
Balance Sheet
|
|---|
| Cash | 53,723 | 39,771 | 27,831 | 20,490 | 23,873 | 16.5% |
| Short Term Debt | 202,426 | 217,552 | 181,491 | 115,680 | 125,574 | 8.6% |
| Long Term Debt | 280,879 | 272,072 | 328,699 | 330,530 | 334,292 | 1.1% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | -2.4% | -1.8% | -3.1% | -1.9% | 4.4% | |
| Net Income Margin | 19.7% | 16.9% | 21.1% | 24.2% | 23.4% | -0.8% |
| ROIC | 3.3% | 2.9% | 3.4% | 3.5% | 4.1% | 0.6% |
| ROE | 10.7% | 8.4% | 9.8% | 10.3% | 10.0% | -0.3% |
Revenue and profitability
The company's Revenue increased on 4.4% in 2016.
Net Income marign decreased slightly on 0.75 pp from 24.2% to 23.4% in 2016.
Return on investment
The company operates at low ROIC (4.06%) and ROE (10.05%). ROIC increased slightly on 0.56 pp from 3.5% to 4.1% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Debt increased on 3.1% in 2016 while cash jumped on 16.5% in 2016.
Appendix 1: 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 9.5% | 4.8% | 12.1% | 5.5% | 0.6% |
|---|
| Jpmorgan Chase & Co ($JPM) | | -1.8% | -3.1% | -1.9% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 2.4% |
|---|
| Jpmorgan Chase & Co ($JPM) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.4% | 3.4% |
|---|
| Jpmorgan Chase & Co ($JPM) | 3.3% | 2.9% | 3.4% | 3.5% | 4.1% |
