Stock: JPM
Rating: Good
Author: Waleed M. Tariq
Summary
- JPMorgan has more assets than BAC, WFC, and C.
- The share price decrease has lowered value multiples.
- JPM is diversified so it won’t crash and burn.
Bullish
- JPM’s diversified portfolio caps its growth but protects it from collapsing and burning.
- JPM’s higher profit margins, ROA, and ROE reflect its competent management.
- The bank’s nine consecutive dividend increases, reasonable valuation, mild volatility, and sensible investments fuel my optimism.
Bearish
- The share price decrease has lowered value multiples.
- As interest rates fell to zero during the pandemic, JPM’s NII fell by 4.2% in 2021 to $52.7 bn from $55 in 2020.
JPM’s Stable, Balanced Revenue Streams
- As interest rates hit zero, JPM’s NII fell 4.2% to $52.7 bn in 2021. Variable-rate loans and securities triggered the drop. CIB’s bond trading increased 5%.
- JPM has 5- and 10-year NII growth. Interest income stopped falling when rates fell. Active economy increased fixed-income.

- This shows the company’s revenues. This has benefited its annual sales over the past 5 years.

Stable dividend history
- JPM has a high dividend payout ratio, above 25%. Only Citigroup has a higher dividend yield. JPM’s dividend should keep growing after 9 years.
- Despite the bank’s low dividend growth and yield, it’s a strong long-term investment.

Valuation
- Expensive: WFC 3.26 PS. P/TBV is higher than peers’. Large banks have a lower P/E ratio than the market due to their high debt-to-equity ratio. Fair, “below-average” valuations.

Conclusion
- Investors seeking growth or dividends can find better shares elsewhere. JPM stock is a fantastic long-term investment for conservatives.