Adding JP Morgan

Screen Shot 2014-01-02 at 9.15.05 AMJP Morgan Chase (JPM.TO) meets my screening criteria.

JPMorgan is a global financial services firm and a banking institution in the United States, with global operations.  The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity.

I analyzed the stock using my usual procedures. The results are as follows.

Screen Shot 2014-01-02 at 9.06.51 AM

  • The P/E Ratio is 13.21, which is a little higher than the average historical P/E of 10.25, and the Graham Number is $72.96
  • The Dividend Yield is only 2.61%, which is low, but the coverage is 290% which supports a future dividend raise
  • Forecast Growth Rate is good at 8.93%, compared with 35.33% historically
  • The Gordon Return (Dividend + Growth) is 11.54%, which is quite high

The Margin of Safety at current prices is -9.35%. This is low but I think the price is fair given the growth prospects.  I believe that the stock is fairly priced here.

  • Buy LB.TO @ $58.20

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