JPM FCF Yield Analysis
Higher than 6% of Financial Services sector peers
Updated 153h ago·SEC filings & market data
Key Takeaway
A free cash flow (FCF) yield of -15.8% means JPMorgan generates negative free cash flow — the cash left after operating and capital expenses — equal to 15.8% of its market value, which is unusual for a bank.
Sector Performance
6th percentileJPM
-15.8%
Sector Median
6.2%
Sector Avg
4.9%
Prior Period
-15.6%(Aug 2026)
Deep Analysis
A free cash flow (FCF) yield of -15.8% means JPMorgan generates negative free cash flow — the cash left after operating and capital expenses — equal to 15.8% of its market value, which is unusual for a bank.
This sits far below the sector median of 6.2%, placing JPMorgan in the 6th percentile among peers, meaning 94% of Financial Services firms have a higher (better) FCF yield. The metric is stable: year-over-year it improved by +1.9 percentage points, while quarter-over-quarter it declined by -1.3 percentage points, with historical values hovering between -15.4% and -16.1%. A persistently negative yield at this low level signals that shareholders are effectively funding operations rather than receiving cash returns, which raises the risk profile even though the trend is neither improving nor deteriorating sharply. This combination of a very low level and flat trend points to ongoing cash flow pressure, not a near-term inflection. The metric directly supports the overall CAUTIOUS verdict, as the negative yield and weak peer comparison reinforce concerns about capital generation.
Frequently Asked Questions
What does the FCF Yield tell investors about JPM?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does JPM's FCF Yield compare to its sector?
JPM's FCF Yield of -15.8% compares to a Financial Services sector median of 6.2%, placing it in the 6th percentile.
Who are JPM's closest peers by FCF Yield?
The closest Financial Services peers by FCF Yield include: AMP (6.2%), ARES (6.1%), RJF (6.6%), AIG (6.9%), AFL (4.4%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master JPM's Valuation
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-15.8%
Sector Median
6.2%
Sector Avg
4.9%
How JPM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.