SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
91.96 USD
-2.06 (-2.19%)
92.04 USD
+0.08 (+0.09%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 238 industry peers in the Capital Markets industry. While SCHW is still in line with the averages on profitability rating, there are concerns on its financial health. SCHW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally SCHW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SCHW was profitable.
In the past year SCHW had a positive cash flow from operations.
In the past 5 years SCHW has always been profitable.
Each year in the past 5 years SCHW had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.48%, SCHW is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 13.73%, SCHW is in the better half of the industry, outperforming 73.95% of the companies in the same industry.
SCHW has a worse Return On Invested Capital (2.32%) than 64.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCHW is significantly below the industry average of 7.64%.
The last Return On Invested Capital (2.32%) for SCHW is above the 3 year average (1.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 13.73% | ||
| ROIC | 2.32% |
ROA(3y)1.1%
ROA(5y)0.93%
ROE(3y)13.6%
ROE(5y)11.15%
ROIC(3y)1.61%
ROIC(5y)1.38%
1.3 Margins
SCHW has a Profit Margin of 25.46%. This is in the better half of the industry: SCHW outperforms 67.65% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
The Operating Margin of SCHW (35.51%) is better than 63.45% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
The Gross Margin of SCHW (81.09%) is better than 85.29% of its industry peers.
In the last couple of years the Gross Margin of SCHW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.51% | ||
| PM (TTM) | 25.46% | ||
| GM | 81.09% |
OM growth 3Y-11.01%
OM growth 5Y-5.93%
PM growth 3Y-9.28%
PM growth 5Y-6.77%
GM growth 3Y-8.21%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
Compared to 1 year ago, SCHW has more shares outstanding
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
The debt/assets ratio for SCHW has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.20, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SCHW (-0.20) is worse than 77.31% of its industry peers.
SCHW has a debt to FCF ratio of 15.76. This is a negative value and a sign of low solvency as SCHW would need 15.76 years to pay back of all of its debts.
SCHW's Debt to FCF ratio of 15.76 is in line compared to the rest of the industry. SCHW outperforms 52.52% of its industry peers.
SCHW has a Debt/Equity ratio of 5.47. This is a high value indicating a heavy dependency on external financing.
SCHW has a Debt to Equity ratio of 5.47. This is amonst the worse of the industry: SCHW underperforms 86.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.47 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | -0.2 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.31 indicates that SCHW may have some problems paying its short term obligations.
With a Current ratio value of 0.31, SCHW is not doing good in the industry: 80.25% of the companies in the same industry are doing better.
SCHW has a Quick Ratio of 0.31. This is a bad value and indicates that SCHW is not financially healthy enough and could expect problems in meeting its short term obligations.
SCHW's Quick ratio of 0.31 is on the low side compared to the rest of the industry. SCHW is outperformed by 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.62% over the past year.
The Earnings Per Share has been growing slightly by 3.62% on average over the past years.
The Revenue has been growing slightly by 4.64% in the past year.
Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
EPS 1Y (TTM)35.62%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%56.16%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%24.75%
3.2 Future
SCHW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.72% yearly.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.33% yearly.
EPS Next Y45.44%
EPS Next 2Y30.66%
EPS Next 3Y25.5%
EPS Next 5Y21.72%
Revenue Next Year20.38%
Revenue Next 2Y14.95%
Revenue Next 3Y13.14%
Revenue Next 5Y12.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
SCHW is valuated rather expensively with a Price/Earnings ratio of 23.22.
Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than the industry average as 62.60% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (27.02), we can say SCHW is valued inline with the index average.
With a Price/Forward Earnings ratio of 16.57, SCHW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, SCHW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 80.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 72.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCHW's earnings are expected to grow with 25.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)6.41
EPS Next 2Y30.66%
EPS Next 3Y25.5%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 5.90%, which is a nice return.
SCHW's Dividend Yield is comparable with the industry average which is at 8.50.
Compared to an average S&P500 Dividend Yield of 2.44, SCHW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
5.2 History
On average, the dividend of SCHW grows each year by 8.99%, which is quite nice.
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
SCHW has decreased its dividend recently.
Dividend Growth(5Y)8.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SCHW pays out 34.48% of its income as dividend. This is a sustainable payout ratio.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.48%
EPS Next 2Y30.66%
EPS Next 3Y25.5%
91.96
-2.06 (-2.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change0%
Ins Owners5.99%
Ins Owner Change-5.89%
Market Cap166.93B
Analysts81.43
Price Target107.67 (17.08%)
Short Float %1.22%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP34.48%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.41%
Min EPS beat(2)1.21%
Max EPS beat(2)1.61%
EPS beat(4)4
Avg EPS beat(4)2.93%
Min EPS beat(4)0.66%
Max EPS beat(4)8.23%
EPS beat(8)6
Avg EPS beat(8)2%
EPS beat(12)9
Avg EPS beat(12)1.79%
EPS beat(16)11
Avg EPS beat(16)0.81%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)0.72%
Revenue beat(8)2
Avg Revenue beat(8)-1.05%
Revenue beat(12)5
Avg Revenue beat(12)2.57%
Revenue beat(16)7
Avg Revenue beat(16)1.94%
PT rev (1m)0.37%
PT rev (3m)15.39%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)12.11%
EPS NY rev (1m)0.05%
EPS NY rev (3m)7.41%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)5.16%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)3.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 16.57 | ||
| P/S | 6.26 | ||
| P/FCF | 9.72 | ||
| P/OCF | 9.37 | ||
| P/B | 3.38 | ||
| P/tB | 5.56 | ||
| EV/EBITDA | 14.59 |
EPS(TTM)3.96
EY4.31%
EPS(NY)5.55
Fwd EY6.03%
FCF(TTM)9.46
FCFY10.29%
OCF(TTM)9.81
OCFY10.67%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.51
PEG (5Y)6.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 13.73% | ||
| ROCE | 13.6% | ||
| ROIC | 2.32% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 2.9% | ||
| OM | 35.51% | ||
| PM (TTM) | 25.46% | ||
| GM | 81.09% | ||
| FCFM | 64.42% |
ROA(3y)1.1%
ROA(5y)0.93%
ROE(3y)13.6%
ROE(5y)11.15%
ROIC(3y)1.61%
ROIC(5y)1.38%
ROICexc(3y)1.81%
ROICexc(5y)1.55%
ROICexgc(3y)1.99%
ROICexgc(5y)1.69%
ROCE(3y)12.72%
ROCE(5y)11.16%
ROICexcg growth 3Y13.97%
ROICexcg growth 5Y4.46%
ROICexc growth 3Y12.7%
ROICexc growth 5Y2.85%
OM growth 3Y-11.01%
OM growth 5Y-5.93%
PM growth 3Y-9.28%
PM growth 5Y-6.77%
GM growth 3Y-8.21%
GM growth 5Y-3.68%
F-Score9
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.47 | ||
| Debt/FCF | 15.76 | ||
| Debt/EBITDA | 24.89 | ||
| Cap/Depr | 44.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 1.7 | ||
| Cash Conversion | 163.73% | ||
| Profit Quality | 253.06% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | -0.2 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)57.78%
Cap/Depr(5y)71.3%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.9%
Profit Quality(3y)153.35%
Profit Quality(5y)137.38%
High Growth Momentum
Growth
EPS 1Y (TTM)35.62%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%56.16%
EPS Next Y45.44%
EPS Next 2Y30.66%
EPS Next 3Y25.5%
EPS Next 5Y21.72%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%24.75%
Revenue Next Year20.38%
Revenue Next 2Y14.95%
Revenue Next 3Y13.14%
Revenue Next 5Y12.33%
EBIT growth 1Y48.8%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.63%
EBIT Next 3Y25.38%
EBIT Next 5Y18.89%
FCF growth 1Y60.92%
FCF growth 3Y19.48%
FCF growth 5Y-24.96%
OCF growth 1Y54.74%
OCF growth 3Y8.03%
OCF growth 5Y-22.13%