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JPMorgan Chase & Co (NYSE:JPM)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

JPMorgan Chase & Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.

JPM' s 10-Year Piotroski F-Score Range
Min: 1   Max: 6
Current: 5

1
6

During the past 13 years, the highest Piotroski F-Score of JPMorgan Chase & Co was 6. The lowest was 1. And the median was 4.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -380 + 5278 + 5274 + 5985 = $16,157 Mil.
Cash Flow from Operations was 26577 + -7108 + 14667 + -4371 = $29,765 Mil.
Revenue was 23117 + 23156 + 22993 + 24454 = $93,720 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(2439494 + 2463309 + 2415689 + 2476986 + 2520336) / 5 = $2,463,163 Mil.
Total Assets was $2,520,336 Mil.
Long-Term Debt was $304,642 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 5708 + 5692 + 6529 + 6496 = $24,425 Mil.

Revenue was 25146 + 23653 + 25122 + 25211 = $99,132 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(2290146 + 2321284 + 2359141 + 2389349 + 2439494) / 5 = $2,359,883 Mil.
Total Assets was $2,439,494 Mil.
Long-Term Debt was $296,597 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

JPMorgan Chase & Co's current net income (ttm) was 16,157. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

JPMorgan Chase & Co's current cash flow from operations (ttm) was 29,765. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Average Total Assets from Jun13 to Jun14
=16157/2463162.8
=0.00655945

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=24425/2359882.8
=0.01035009

JPMorgan Chase & Co's return on assets of this year was 0.00655945. JPMorgan Chase & Co's return on assets of last year was 0.01035009. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

JPMorgan Chase & Co's current net income (ttm) was 16,157. JPMorgan Chase & Co's current cash flow from operations (ttm) was 29,765. ==> 29,765 > 16,157 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=304642/2520336
=0.12087357

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=296597/2439494
=0.12158136

JPMorgan Chase & Co's gearing of this year was 0.12087357. JPMorgan Chase & Co's gearing of last year was 0.12158136. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun14)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=0/0
=

JPMorgan Chase & Co's current ratio of this year was . JPMorgan Chase & Co's current ratio of last year was . ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

JPMorgan Chase & Co's number of shares in issue this year was 3812.5. JPMorgan Chase & Co's number of shares in issue last year was 3814.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=0/93720
=0

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=0/99132
=0

JPMorgan Chase & Co's gross margin of this year was 0. JPMorgan Chase & Co's gross margin of last year was 0. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Average Total Assets from Jun13 to Jun14
=93720/2463162.8
=0.03804864

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=99132/2359882.8
=0.04200717

JPMorgan Chase & Co's asset turnover of this year was 0.03804864. JPMorgan Chase & Co's asset turnover of last year was 0.04200717. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+1+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

JPMorgan Chase & Co has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

JPMorgan Chase & Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 0000110111
Q3 0111011110
Q4 0000110111
Q5 0000101110
Q6 0000000000
Q7 0001000111
Q8 0000000000
Q9 1111011001
F-score 2334454665

JPMorgan Chase & Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0001110000
Q4 1111111111
Q5 1111000001
Q6 0000000000
Q7 1110011111
Q8 0000000000
Q9 0000010000
F-score 5555464445
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