SCHWAB (CHARLES) CORP (SCHW)
US8085131055 - Common Stock
We assign a fundamental rating of 3 out of 10 to SCHW. SCHW was compared to 219 industry peers in the Capital Markets industry. SCHW may be in some trouble as it scores bad on both profitability and health. SCHW has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years SCHW has been profitable.
In the past 5 years SCHW always reported a positive cash flow from operatings.
1.2 Ratios
SCHW has a Return On Assets of 0.98%. This is in the lower half of the industry: SCHW underperforms 67.91% of its industry peers.
Looking at the Return On Equity, with a value of 10.02%, SCHW is in line with its industry, outperforming 56.74% of the companies in the same industry.
The Return On Invested Capital of SCHW (1.40%) is worse than 75.35% of its industry peers.
SCHW had an Average Return On Invested Capital over the past 3 years of 1.43%. This is significantly below the industry average of 17.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.02% | ||
| ROIC | 1.4% |
ROA(3y)0.98%
ROA(5y)0.94%
ROE(3y)13%
ROE(5y)12.13%
ROIC(3y)1.43%
ROIC(5y)1.33%
1.3 Margins
SCHW has a Profit Margin of 17.28%. This is comparable to the rest of the industry: SCHW outperforms 50.23% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
SCHW has a Operating Margin of 24.89%. This is comparable to the rest of the industry: SCHW outperforms 44.19% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
SCHW's Gross Margin of 72.57% is fine compared to the rest of the industry. SCHW outperforms 74.88% of its industry peers.
In the last couple of years the Gross Margin of SCHW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.89% | ||
| PM (TTM) | 17.28% | ||
| GM | 72.57% |
OM growth 3Y-12.24%
OM growth 5Y-8.68%
PM growth 3Y-10.17%
PM growth 5Y-9.67%
GM growth 3Y-8.56%
GM growth 5Y-4.35%
2. Health
2.1 Basic Checks
Compared to 1 year ago, SCHW has less shares outstanding
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
SCHW has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.33, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.33, SCHW is not doing good in the industry: 87.91% of the companies in the same industry are doing better.
The Debt to FCF ratio of SCHW is 34.81, which is on the high side as it means it would take SCHW, 34.81 years of fcf income to pay off all of its debts.
SCHW has a Debt to FCF ratio (34.81) which is in line with its industry peers.
SCHW has a Debt/Equity ratio of 7.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.04, SCHW is doing worse than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.04 | ||
| Debt/FCF | 34.81 | ||
| Altman-Z | -0.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current Ratio of 0.25. 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 Current ratio of 0.25 is on the low side compared to the rest of the industry. SCHW is outperformed by 85.58% of its industry peers.
SCHW has a Quick Ratio of 0.25. 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 has a worse Quick ratio (0.25) than 85.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for SCHW have decreased strongly by -24.55% in the last year.
The Earnings Per Share has been growing slightly by 5.02% on average over the past years.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 1.65% in the last year.
Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 18.36% on average per year.
EPS 1Y (TTM)-24.55%
EPS 3Y11.14%
EPS 5Y5.02%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Sales Q2Q%0.73%
3.2 Future
The Earnings Per Share is expected to grow by 14.48% on average over the next years. This is quite good.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.62% yearly.
EPS Next Y-0.95%
EPS Next 2Y13.91%
EPS Next 3Y17.03%
EPS Next 5Y14.48%
Revenue Next Year1.33%
Revenue Next 2Y7.66%
Revenue Next 3Y9.2%
Revenue Next 5Y8.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.81 indicates a rather expensive valuation of SCHW.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW indicates a slightly more expensive valuation: SCHW is more expensive than 62.79% of the companies listed in the same industry.
SCHW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.71.
The Price/Forward Earnings ratio is 15.68, which indicates a correct valuation of SCHW.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
SCHW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued a bit cheaper than 71.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than 66.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
SCHW's earnings are expected to grow with 17.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)4.34
EPS Next 2Y13.91%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, SCHW has a reasonable but not impressive dividend return.
SCHW's Dividend Yield is slightly below the industry average, which is at 8.61.
Compared to the average S&P500 Dividend Yield of 2.26, SCHW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 16.06%!
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SCHW pays out 51.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SCHW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP51.56%
EPS Next 2Y13.91%
EPS Next 3Y17.03%
SCHWAB (CHARLES) CORP
NYSE:SCHW (9/16/2024, 8:04:00 PM)
After market: 63.8 +0.11 (+0.17%)63.69
+1.57 (+2.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap116.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 15.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.89% | ||
| PM (TTM) | 17.28% | ||
| GM | 72.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.55%
EPS 3Y11.14%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.65%
Revenue growth 3Y28.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y