America’s largest bank, JPMorgan Chase (JPM) is experiencing incredible growth.
For example, JPMorgan’s revenues grew by 78.69% in the quarter ending on 30 June 2023, Stockrow estimates. Chase’s growth rate is rising. For example, the revenue growth rate rose from 68.96% in the quarter ending on 31 March 2023. Moreover, the quarterly revenue growth rate rose from 7.54% in the quarter ending on 30 June 2022.
Consequently, JPMorgan’s quarterly revenues grew from $34.33 billion on 30 June 2022 to $61.172 billion on 30 June 2023. Hence, Chase’s quarterly revenues grew by $26.939 billion in a year.
JPM Morgan (JPM) Chase is a Phenomenal Growth Stock
That revenue growth translates into more profits and income. For example, JPM Morgan Chase’s quarterly gross profit grew from $30.715 billion on 30 June 2022 to $41.307 billion on 30 June 2023. Similarly, the quarterly operating income grew from $10.865 billion on 30 June 2022 to $17.586 billion on 30 June 2023.
Hence, I consider JPMorgan Chase (JPM) a phenomenal growth stock. I consider JPM an excellent growth stock because its assets are growing. Chase’s quarterly assets grew from $3.841 trillion on 30 June 2022 to $3.868 trillion on 30 June 2023.
Conversely, JPMorgan Chase’s cash and short-term investments grew from $1.457 trillion on 30 June 2022 to $1.458 trillion on 30 June 2023. Thus, JPMorgan Chase is a growth stock with $1.458 trillion in cash which makes it phenomenal.
Moreover, JPMorgan’s total debts fell from $584.126 billion on 31 March 2023 to $364.078 billion on 30 June 2023. Hence, JPMorgan has more revenue, more cash, more assets, more income, more gross profits, more revenues, and less debt.
How Much Cash is JPMorgan (JPM) generating?
JPMorgan Chase & Co (JPM) reported no cash flows on 30 June 2023. However, JPMorgan can generate extraordinary amounts of cash and burn enormous amounts of cash.
Incredibly, JPMorgan generated a $546 billion quarterly ending cash flow on 31 March 2023. The quarterly ending cash flow rose from -$76.953 billion on 31 December 2022.
Yet JPMorgan Chase also burns cash at a fearsome rate. For example, JPMorgan reported a -$111.241 billion quarterly operating cash flow on 31 March 2023. Conversely, Chase & Co reported a quarterly operating cash flow of $101.222 billion on 31 December 2022.
Similarly, JPMorgan reported a quarterly investing cash flow of $23.794 billion on 31 March 2023. Chase also reported a quarterly financing cash flow of $64.557 billion on 31 March 2023. Thus, JPMorgan Chase is a stock for people who love cash. Its business model generates enormous amounts of cash.
Is JPMorgan Chase (JPM) vital to America’s future?
JPMorgan Chase (JPM) shows size pays off dramatically in banking. To explain, JPMorgan Chase is the largest US bank and the fifth-largest bank in the world.
According to Statista the world’s four largest banks in December 2022 were:
- The Industrial & Commercial Bank of China Ltd with $5.47 trillion in assets.
- The China Construction Bank Corporation with $5.02 trillion in assets.
- The Agricultural Bank of China with $4.92 trillion in assets.
- The Bank of China with $4.19 trillion in assets.*
Hence, JPMorgan Chase is the largest bank outside of China. It also the largest bank without the backing of the Chinese Communist Party.
Therefore, JPMorgan Chase could be an important US national asset because it could compete with Chinese financial institutions. Hence, you can argue JPMorgan’s size is an important US national asset. To explain, JPMorgan Chase can give the US the financial resources to compete with Chinese institutions.
What Value Does JPMorgan Chase (JPM) offer?
JPMorgan’s growth is translating into stock growth. For example, its share price rose from $113.61 on 3 August 2022 to $156.35 on 3 August 2023. I think this price is rational because of JPMorgan’s growth.
Plus, JPMorgan is an attractive dividend stock. For example, they have scheduled eight $1 quarterly dividends between 31 October 2023 and 31 July 2025. Therefore, JPMorgan Chase (JPM) offered a $1 forward dividend and a 2.56% forward dividend yield on 3 August 2023.
I think value investors need to examine JPMorgan Chase because it is a cash-rich company that shows phenomenal growth and pays a nice dividend. Value and dividend investors need to investigate America’s largest bank.
*https://www.statista.com/statistics/269845/largest-banks-in-the-world-by-total-assets/
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