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. $7,791m
- The company has potentially unprofitable business model: ROIC is 4.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 8.4%. During FY2015-FY2019 Revenue growth topped in FY2018 at 15.4%.
Net Income margin increased slightly on 0.87 pp from 24.7% to 25.6% in FY2019. During the last 5 years Net Income margin bottomed in FY2017 at 21.5% and was growing since that time.
Return on investment
The company operates at good ROE (14.9%) while ROIC is low (4.9%). ROIC showed almost no change in FY2019. ROE increased slightly on 1.6 pp from 13.3% to 14.9% in FY2019. ROIC grew at 0.34 pp per annum in FY2015-FY2019. During FY2015-FY2019 ROE bottomed in FY2017 at 9.9% and was growing since that time.
Leverage (Debt)
Debt surged on 32.3% while cash decreased on 2.8%.
Jpmorgan Chase & Co has short term refinancing risk: cash is only 7.2% of short term debt.
Financial and operational results
FY ended 30 Nov -0001
Jpmorgan Chase & Co ($JPM) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 101,006 | 105,486 | 113,899 | 131,412 | 142,422 | 8.4% |
| Tax | | | | 8,290 | | |
| Net Income | 24,442 | 24,733 | 24,441 | 32,474 | 36,431 | 12.2% |
Balance Sheet
|
|---|
| Cash | 20,490 | 23,873 | 25,827 | 22,324 | 21,704 | -2.8% |
| Short Term Debt | 115,680 | 125,574 | 142,262 | 158,390 | 300,164 | 89.5% |
| Long Term Debt | 330,530 | 334,292 | 310,161 | 302,272 | 309,339 | 2.3% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | | | |
| Dividends | | | | 10,109 | | |
Ratios
|
|---|
| Revenue growth | -1.9% | 4.4% | 8.0% | 15.4% | 8.4% | |
|
|---|
| Net Income Margin | 24.2% | 23.4% | 21.5% | 24.7% | 25.6% | 0.9% |
|
|---|
| ROIC | 3.5% | 4.0% | 4.1% | 4.5% | 4.9% | 0.4% |
| ROE | 10.3% | 10.0% | 9.9% | 13.3% | 14.9% | 1.6% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| Yapi Ve Kredi Bankasi As ($YKBD) | 25.3% | 17.8% | 18.8% | 51.8% | |
| Turkiye Garanti Bankasi ($39IS) | 10.3% | 20.4% | 18.6% | 50.6% | |
| Finansbank ($FBKD) | 6.9% | 16.8% | 19.0% | 50.1% | |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| |
|---|
| Median (19 companies) | 4.2% | 3.4% | 4.5% | 12.2% | 19.2% |
|---|
| Jpmorgan Chase & Co ($JPM) | | 4.4% | 8.0% | 15.4% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Banco Santander Sa ($BNC) | 10.2% | 9.1% | 10.0% | 14.7% | |
| Bcb Hldgs Ltd ($BCBW) | 2.5% | 3.0% | 7.3% | 5.9% | |
| Barclays ($BARC) | 7.1% | 6.3% | 5.4% | 4.9% | |
| Royal Bank Of Scotland Group ($RBS) | 4.6% | 5.6% | 7.1% | 3.7% | |
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | |
| |
|---|
| Median (17 companies) | 2.6% | 2.5% | 1.9% | 1.3% | 1.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | |
| |
|---|
| Median (34 companies) | 3.4% | 4.6% | 4.6% | 4.1% | 4.6% |
|---|
| Jpmorgan Chase & Co ($JPM) | 3.5% | 4.0% | 4.1% | 4.5% | 4.9% |
