Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- JPMorgan Chase (NYSE: JPM) has been reiterated by TheStreet Ratings as a buy with a ratings score of B- . The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Compared to its closing price of one year ago, JPM's share price has jumped by 28.85%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JPM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 87.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.70% is above that of the industry average.
- JPMORGAN CHASE & CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $4.47 versus $3.96 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $4.47).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.9%. Since the same quarter one year prior, revenues fell by 17.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $41,983.00 million or 35.11% when compared to the same quarter last year. Despite a decrease in cash flow of 35.11%, JPMORGAN CHASE & CO is in line with the industry average cash flow growth rate of -40.25%.
--Written by a member of TheStreet Ratings Staff.FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now