Jpmorgan Chase & Co reports 32.9% Net Income growth in 2018
15 Jan 2019 • About Jpmorgan Chase & Co (
$JPM) • By InTwits
Jpmorgan Chase & Co reported 2018 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. In 2018 this situation was still the same: CAPEX was while D&A was 7,791
- The company has potentially unprofitable business model: ROIC is 4.5%
- It operates with high leverage: Net Debt/EBITDA is 4.9x while industry average is
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 jumped on 15.4%. Revenue decline was slowing down on average by 4.8 pp per annum in 2014-2018.
Net Income margin increased on 3.3 pp from 21.5% to 24.7% in 2018. The efficient tax rate was 20.3% in 2018.
Return on investment
The company operates at good ROE (13.3%) while ROIC is low (4.5%). ROIC showed almost no change in 2018. ROE increased on 3.5 pp from 9.9% to 13.3% in 2018. ROIC followed a growing trend at 0.28 pp per annum in 2014-2018.
Leverage (Debt)
Debt increased slightly on 1.8% while cash dropped on 13.6%.
Jpmorgan Chase & Co has short term refinancing risk: cash is only 14.1% of short term debt.
The company paid 31.1% of Net Income as dividends in 2018.
Management team
CEO total compensation was
$30,033,745 in 2018 which included
$1,500,000 salary and
$5,000,000 annual bonus.
0.37% of the company is owned by insiders.
The company has 256,105 employees. Average revenue per employee in 2018 was
$513,118.
Financial and operational results
FY ended 31 Dec 2018
Jpmorgan Chase & Co ($JPM) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 103,009 | 101,006 | 105,486 | 113,899 | 131,412 | 15.4% |
| Tax | | | | | 8,290 | |
| Net Income | 21,745 | 24,442 | 24,733 | 24,441 | 32,474 | 32.9% |
Balance Sheet
|
|---|
| Cash | 27,831 | 20,490 | 23,873 | 25,827 | 22,324 | -13.6% |
| Short Term Debt | 181,491 | 115,680 | 125,574 | 142,262 | 158,390 | 11.3% |
| Long Term Debt | 328,699 | 330,530 | 334,292 | 310,161 | 302,272 | -2.5% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | | |
| Dividends | | | | | 10,109 | |
Ratios
|
|---|
| Revenue growth | -3.8% | -1.9% | 4.4% | 8.0% | 15.4% | |
|
|---|
| Net Income Margin | 21.1% | 24.2% | 23.4% | 21.5% | 24.7% | 3.3% |
|
|---|
| ROIC | 3.4% | 3.5% | 4.0% | 4.1% | 4.5% | 0.5% |
| ROE | 9.8% | 10.3% | 10.0% | 9.9% | 13.3% | 3.5% |
People
|
|---|
| Insider ownership | | | | | 0.4% | |
| Employees | | | | | 256,105 | |
| Revenue/Employee, th. $ | | | | | 513 | |
Peers in Banks
Below we provide Jpmorgan Chase & Co benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| European Islamic Investment Bank ($EIIB) | 42.3% | -4.1% | -63.9% | 232.5% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 16.3% | 19.5% | 16.4% | 59.5% | |
| Zenith Bank ($ZENB) | | 6.8% | 17.9% | 46.7% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 18.9% | 26.8% | 27.0% | 46.4% | |
| TCS Group Holding ($TCS) | 11.5% | 10.6% | 34.0% | 33.7% | |
| |
|---|
| Median (43 companies) | 13.6% | 4.0% | 3.4% | 4.5% | 12.2% |
|---|
| Jpmorgan Chase & Co ($JPM) | | -1.9% | 4.4% | 8.0% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lloyds Banking Group ($LLPC) | 13.1% | 13.6% | 14.5% | 14.5% | |
| Banco Santander Sa ($BNC) | 8.9% | 10.2% | 9.1% | 10.0% | |
| Bcb Hldgs Ltd ($BCBW) | 5.4% | 2.5% | 3.0% | 7.3% | 5.9% |
| Royal Bank Of Scotland Group ($RBS) | 4.1% | 4.6% | 5.6% | 7.1% | |
| Diamond Bank ($DBPA) | 6.0% | 6.7% | 6.2% | 7.0% | |
| |
|---|
| Median (39 companies) | 2.1% | 2.6% | 2.5% | 1.9% | 1.0% |
|---|
| Jpmorgan Chase & Co ($JPM) | 0.0% | 0.0% | 0.0% | 0.0% | |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TCS Group Holding ($TCS) | 6.7% | 3.4% | 22.5% | 31.8% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.1% | 30.3% | 28.0% | 25.3% | |
| Guaranty Trust Bank ($GRTB) | 17.8% | 16.0% | 17.4% | 18.3% | |
| Sberbank Of Russia ($SBER) | 4.8% | 4.0% | 9.4% | 13.0% | |
| Zenith Bank ($ZENB) | 15.0% | 11.2% | 11.1% | 11.4% | |
| |
|---|
| Median (43 companies) | 4.4% | 3.4% | 4.6% | 4.6% | 4.6% |
|---|
| Jpmorgan Chase & Co ($JPM) | 3.4% | 3.5% | 4.0% | 4.1% | 4.5% |
