0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
Company Overview: JPMorgan Chase & Co. (NYSE: JPM) is a financial holding company that specialises in asset management, investment banking, and financial services. It has four business segments as well as a corporate division. Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset Management are the company's segments. Consumer and community banking provides services to individuals and businesses through bank branches, ATMs, internet, mobile, and telephone banking. The Corporate & Investment Bank business, which includes Banking and Markets and Investor Services, provides corporations, investors, financial institutions, government and municipal entities with investment banking, market-making, prime brokerage, and treasury and securities products and services. Lending, treasury services, investment banking, and asset management are all services provided by the Commercial Banking division. Investment and wealth management are included in the Asset Management section.
JPM Details
Key Takeaways from Q1FY22 (ended March 31, 2022)
Revenue & Net Income Key Highlights; Analysis by Kalkine Group
Recent Developments
Key Metrics: In FY21, JPM's Net Interest Margin and Deposit Growth were 1.67% and 4.0%, higher than previous quarter of 1.63% and 2.4%, respectively. Its Loan Growth stood at (0.5%), 260 bps less than the industry median of 2.3%. Efficiency ratio was 62.5% as of Q1FY22, higher than 61.1% on December 31, 2020.
Growth Metrics; Analysis by Kalkine Group
Top 10 Shareholders: The top 10 shareholders together form around 28.65% of the total shareholding, while the top 4 constitute the maximum holding. The Vanguard Group, Inc., and State Street Global Advisors (US) hold the maximum stake in the company at 8.85% and 4.82%, respectively, as also highlighted in the chart below:
Top 10 Shareholders; Analysis by Kalkine Group
Risk Analysis
Outlook
Valuation Methodology: Price/Earnings Per Share Relative Valuation (Illustrative)
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation: JPM’s share price has corrected 27.65% over the past six months. The stock is currently leaning towards the lower band of its 52-week range of USD 122.87 to USD 172.96. We have valued the stock using the Price/Earnings multiple-based illustrative relative valuation method and arrived at a target price with an upside of low-twenties (in percentage terms). We believe that the company can trade at a premium compared to its peer's average, considering its growth in deposits and consistent net interest margins. We have taken peers like US Bancorp (NYSE: USB) and Comerica Inc. (NYSE: CMA). Considering the company stable revenue, robust dividend yield, associated risks, and current valuation, we give a "Buy" recommendation on the stock at the closing price of USD 121.42, down 1.30% as of April 27, 2022.
JPM Technical Chart, Data Source: REFINITIV
Technical Indicators Defined
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone.
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