JPM Intrinsic Value – JPMorgan Chase Cuts Ties with Base Metals Clients Amid Nickel Price Turmoil
April 15, 2023
Trending News 🌧️
JPMORGAN ($NYSE:JPM): JPMorgan Chase has reportedly cut ties with its base metals clients due to the nickel price turmoil in the global market. The move underscores the bank’s commitment to making sure that its customers are not subject to risk associated with volatile commodities prices. JPMorgan Chase & Co. is an American multinational investment bank and financial services company headquartered in New York City.
Price History
JPMorgan Chase, one of the world’s largest financial institutions, has announced that it is cutting ties with certain base metals clients due to the current market turmoil surrounding nickel prices. The announcement was made on Thursday, when JPMorgan’s stock opened at $128.5 and closed at $129.0, an increase of 0.4% from its prior closing price. This move by JPMorgan Chase comes in response to the sudden surge in nickel prices due to a shortage in supply. Some analysts are attributing this shortage to the fact that Indonesia and the Philippines, two of the world’s largest producers of nickel, have imposed export restrictions. As a result, the demand for nickel has outpaced its supply, leading to a dramatic increase in prices. In light of this situation, JPMorgan Chase has decided to stop providing financing to certain base metals clients such as traders and producers. This decision is expected to have a significant impact on the global nickel market, as JPMorgan is one of the largest providers of metal financing in the world.
Additionally, it will likely cause some traders to struggle with liquidity as they may not be able to find alternative financing sources. Overall, JPMorgan Chase’s decision to cut ties with certain base metals clients is expected to have a ripple effect throughout the global nickel market. The repercussions of this move may be felt for months to come, as the supply-demand imbalance continues to plague the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JPM. More…
| Total Revenues | Net Income | Net Margin |
| – | 35.89k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JPM. More…
| Operations | Investing | Financing |
| 107.12k | -137.82k | -126.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JPM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.67M | 3.37M | – |
Key Ratios Snapshot
Some of the financial key ratios for JPM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – JPM Intrinsic Value
At GoodWhale, we have done an analysis of JPMORGAN CHASE &’s financials. Based on our proprietary Valuation Line, we have come to the conclusion that the intrinsic value of a JPMORGAN CHASE & share is approximately $136.2. At the current market price of $129.0, it’s a fair price that is undervalued by 5.3%. More…
Peers
In the banking industry, JPMorgan Chase & Co and its competitors Wells Fargo & Co, PNC Financial Services Group Inc, Banco BPM SpA compete for customers and market share. Each company offers a different suite of products and services, and each has its own strengths and weaknesses. JPMorgan Chase & Co has been able to maintain its position as one of the largest banks in the world by offering a wide range of products and services, as well as by providing customers with a high level of customer service.
– Wells Fargo & Co ($NYSE:WFC)
Wells Fargo & Co is an American multinational banking and financial services holding company headquartered in San Francisco, California. It is the world’s fourth-largest bank by market capitalization and the third largest in the United States. Wells Fargo & Co. provides banking, insurance, investments, mortgage, and consumer and commercial finance services through more than 8,700 locations, 13,000 ATMs, online (wellsfargo.com), and mobile banking, and has offices in 36 countries.
– PNC Financial Services Group Inc ($NYSE:PNC)
PNC Financial Services Group Inc is a large financial services company with a market cap of $65.38 billion as of 2022. The company provides a wide range of financial services, including banking, lending, investing, and asset management. PNC has a large customer base and a strong presence in the United States.
– Banco BPM SpA ($LTS:0RLA)
Banco BPM SpA is an Italian bank created through the merger of Banco Popolare and Banca Popolare di Milano in January 2017. The bank is the third largest in Italy with over 1,000 branches and 5 million customers. The bank offers a wide range of banking products and services including savings accounts, mortgages, loans, and investment products.
Summary
JPMorgan Chase & Co has reportedly started to cut ties with some of its base metals clients as a consequence of the current nickel market crisis. According to the report, JPMorgan intends to reduce its exposure and involvement in the base metals market due to the instability and risks associated with it. This may include reducing their base metals clientele, as well as cutting back on the commodities trading endeavors they are involved in.
This news reinforces the fact that JPMorgan is looking to reduce its risk exposure across all asset classes and avoid potential losses in this volatile market. As investors look for ways to protect their investments, it is important for them to be aware of the market movements and changes within JPMorgan’s investment strategy.
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