📊 JPM Key Takeaways
Is JPMorgan Chase & Co (JPM) a Good Investment?
JPMorgan Chase demonstrates solid profitability with strong net margins (31.3%) and healthy ROE (15.7%), supported by massive revenue growth of 91.2% YoY. However, the negative operating cash flow of -$147.8B and concerning free cash flow margin of -81% raise significant questions about cash generation quality and operational sustainability that overshadow the top-line growth.
JPMorgan Chase shows very strong core profitability, with a 39.8% operating margin, 31.3% net margin, and 15.7% ROE on a massive asset base. Financial health appears solid given $343.34B of cash and $362.44B of equity, though growth quality is mixed because revenue surged 91.2% while net income rose only 2.5%, suggesting margin normalization or less durable top-line drivers. The balance of strong earnings power and scale supports a positive fundamental view, but cash flow volatility and leverage still warrant monitoring.
JPMorgan Chase & Co Key Strengths (JPM)
- Exceptional revenue growth of 91.2% YoY indicating strong business momentum and market demand
- High profitability metrics with 31.3% net margin and 39.8% operating margin demonstrating pricing power and operational efficiency
- Strong balance sheet with $343.3B in cash equivalents and manageable 0.74x debt-to-equity ratio providing financial flexibility
- Solid return on equity of 15.7% showing effective capital deployment despite challenges
- Strong absolute earnings power with $57.05B in net income and $72.59B in operating income
- Solid profitability for a large bank, including 31.3% net margin and 15.7% ROE
- Very large liquidity buffer with $343.34B in cash and a substantial $362.44B equity base
JPM Stock Risks: JPMorgan Chase & Co Investment Risks
- Severe negative operating cash flow of -$147.8B and -81% FCF margin indicating the company is burning cash rather than generating it operationally
- Massive divergence between reported net income ($57.0B) and negative operating cash flow suggests potential earnings quality concerns or significant working capital deterioration
- Low interest coverage ratio of 3.0x leaves limited margin of safety if interest rates rise or credit conditions tighten in banking sector
- Zero insider purchases in last 90 days may indicate management confidence concerns about near-term prospects
- Operating cash flow and free cash flow were deeply negative, highlighting the need to assess funding-flow quality
- Revenue growth far outpaced EPS and net income growth, which may indicate weaker growth quality or non-recurring drivers
- Interest coverage of 3.0x and $269.93B of long-term debt leave earnings sensitive to funding costs and credit conditions
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative FCF is structural or temporary
- Net income sustainability relative to cash generation - watch for widening gap between earnings and cash conversion
- Debt servicing capability and interest coverage ratio - monitor closely given low 3.0x coverage in rising rate environment
- Working capital dynamics and loan loss provisions - key drivers of the cash flow divergence
- Net income and EPS growth relative to revenue growth
- Operating cash flow normalization and interest coverage
JPMorgan Chase & Co (JPM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
JPM Profit Margin, ROE & Profitability Analysis
JPM vs Market Sector: How JPMorgan Chase & Co Compares
How JPMorgan Chase & Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is JPMorgan Chase & Co Stock Overvalued? JPM Valuation Analysis 2026
Based on fundamental analysis, JPMorgan Chase & Co has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
JPMorgan Chase & Co Balance Sheet: JPM Debt, Cash & Liquidity
JPM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: JPMorgan Chase & Co's revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $16.23 reflects profitable operations.
JPM Revenue Growth, EPS Growth & YoY Performance
JPM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2014 | $23.1B | -$126.0M | $-0.17 |
| Q2 2014 | $24.5B | $3.1B | $1.46 |
| Q1 2014 | $23.0B | $4.9B | $1.28 |
| Q3 2013 | $23.1B | -$126.0M | $-0.17 |
| Q2 2013 | $22.2B | $3.1B | $1.21 |
| Q1 2013 | $25.1B | $4.6B | $1.19 |
| Q3 2012 | $23.8B | $3.9B | $1.02 |
| Q2 2012 | $22.2B | $4.6B | $1.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
JPMorgan Chase & Co Dividends, Buybacks & Capital Allocation
JPM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for JPMorgan Chase & Co (CIK: 0000019617)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JPM
What is the AI rating for JPM?
JPMorgan Chase & Co (JPM) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JPM's key strengths?
Claude: Exceptional revenue growth of 91.2% YoY indicating strong business momentum and market demand. High profitability metrics with 31.3% net margin and 39.8% operating margin demonstrating pricing power and operational efficiency. ChatGPT: Strong absolute earnings power with $57.05B in net income and $72.59B in operating income. Solid profitability for a large bank, including 31.3% net margin and 15.7% ROE.
What are the risks of investing in JPM?
Claude: Severe negative operating cash flow of -$147.8B and -81% FCF margin indicating the company is burning cash rather than generating it operationally. Massive divergence between reported net income ($57.0B) and negative operating cash flow suggests potential earnings quality concerns or significant working capital deterioration. ChatGPT: Operating cash flow and free cash flow were deeply negative, highlighting the need to assess funding-flow quality. Revenue growth far outpaced EPS and net income growth, which may indicate weaker growth quality or non-recurring drivers.
What is JPM's revenue and growth?
JPMorgan Chase & Co reported revenue of $182.4B.
Does JPM pay dividends?
JPMorgan Chase & Co pays dividends, with $16,625.0M distributed to shareholders in the trailing twelve months.
Where can I find JPM SEC filings?
Official SEC filings for JPMorgan Chase & Co (CIK: 0000019617) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JPM's EPS?
JPMorgan Chase & Co has a diluted EPS of $20.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is JPM's fundamental grade?
Based on our AI fundamental analysis in June 2026, JPMorgan Chase & Co has a A grade with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is JPM stock overvalued or undervalued?
Valuation metrics for JPM: ROE of 15.7% (sector avg: 15%), net margin of 31.3% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is JPM's AI grade for 2026?
Our dual AI analysis gives JPMorgan Chase & Co a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is JPM's free cash flow?
JPMorgan Chase & Co's operating cash flow is $-147.8B, with capital expenditures of N/A. FCF margin is -81.0%.
How does JPM compare to other Market stocks?
Vs Default sector averages: Net margin 31.3% (avg: 12%), ROE 15.7% (avg: 15%), current ratio N/A (avg: 1.8).