SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
95.24 USD
+1.04 (+1.1%)
94.0625 USD
-1.18 (-1.24%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 237 industry peers in the Capital Markets industry. There are concerns on the financial health of SCHW while its profitability can be described as average. 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.
SCHW had positive earnings in each of the past 5 years.
SCHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCHW has a worse Return On Assets (1.48%) than 60.34% of its industry peers.
SCHW has a better Return On Equity (13.73%) than 74.68% of its industry peers.
SCHW's Return On Invested Capital of 2.32% is on the low side compared to the rest of the industry. SCHW is outperformed by 62.87% of its industry peers.
SCHW had an Average Return On Invested Capital over the past 3 years of 1.61%. This is significantly below the industry average of 7.63%.
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 better Profit Margin (25.46%) than 66.24% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
SCHW has a better Operating Margin (35.51%) than 64.14% of its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
SCHW has a better Gross Margin (81.09%) than 85.23% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| 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
Compared to 5 years ago, SCHW has more shares outstanding
SCHW has a better debt/assets ratio than last year.
2.2 Solvency
SCHW has an Altman-Z score of -0.20. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
SCHW has a Altman-Z score of -0.20. This is in the lower half of the industry: SCHW underperforms 78.06% of its industry peers.
The Debt to FCF ratio of SCHW is 15.76, which is on the high side as it means it would take SCHW, 15.76 years of fcf income to pay off 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 51.48% 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.
Looking at the Debt to Equity ratio, with a value of 5.47, SCHW is doing worse than 86.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.47 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | -0.2 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current 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.
Looking at the Current ratio, with a value of 0.31, SCHW is doing worse than 81.01% of the companies in the same industry.
A Quick Ratio of 0.31 indicates that SCHW may have some problems paying its short term obligations.
The Quick ratio of SCHW (0.31) is worse than 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
SCHW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.11%, which is quite impressive.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.62% yearly.
SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
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)54.11%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%70.13%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
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 Y49.9%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
EPS Next 5Y21.72%
Revenue Next Year21.81%
Revenue Next 2Y15.73%
Revenue Next 3Y13.76%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.16, which indicates a rather expensive current valuation of SCHW.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW is on the same level as its industry peers.
SCHW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
Based on the Price/Forward Earnings ratio of 16.80, the valuation of SCHW can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SCHW.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, SCHW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
SCHW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCHW is cheaper than 80.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than 73.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 14.62 |
4.3 Compensation for Growth
SCHW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 26.96% in the coming years.
PEG (NY)0.42
PEG (5Y)5.84
EPS Next 2Y32.08%
EPS Next 3Y26.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.55%, SCHW is a good candidate for dividend investing.
SCHW's Dividend Yield is comparable with the industry average which is at 8.39.
Compared to an average S&P500 Dividend Yield of 2.39, SCHW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
On average, the dividend of SCHW grows each year by 8.99%, which is quite nice.
SCHW has paid a dividend for at least 10 years, which is 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.
The dividend of SCHW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.48%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
95.24
+1.04 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-0.29%
Ins Owners5.99%
Ins Owner Change-7.51%
Market Cap172.88B
Revenue(TTM)27.16B
Net Income(TTM)6.79B
Analysts81.43
Price Target112.2 (17.81%)
Short Float %0.99%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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)4.6%
PT rev (3m)10.7%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)3.07%
EPS NY rev (3m)8.53%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 16.8 | ||
| P/S | 6.48 | ||
| P/FCF | 10.06 | ||
| P/OCF | 9.71 | ||
| P/B | 3.5 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 14.62 |
EPS(TTM)4.5
EY4.72%
EPS(NY)5.67
Fwd EY5.95%
FCF(TTM)9.46
FCFY9.94%
OCF(TTM)9.81
OCFY10.3%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.42
PEG (5Y)5.84
Graham Number52.52
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%
ROICexgc growth 3Y13.97%
ROICexgc 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)54.11%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%70.13%
EPS Next Y49.9%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
EPS Next 5Y21.72%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year21.81%
Revenue Next 2Y15.73%
Revenue Next 3Y13.76%
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%
SCHWAB (CHARLES) CORP / SCHW FAQ
What is the fundamental rating for SCHW stock?
ChartMill assigns a fundamental rating of 4 / 10 to SCHW.
What is the valuation status for SCHW stock?
ChartMill assigns a valuation rating of 5 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Fairly Valued.
How profitable is SCHWAB (CHARLES) CORP (SCHW) stock?
SCHWAB (CHARLES) CORP (SCHW) has a profitability rating of 5 / 10.
What is the valuation of SCHWAB (CHARLES) CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SCHWAB (CHARLES) CORP (SCHW) is 21.16 and the Price/Book (PB) ratio is 3.5.
Can you provide the dividend sustainability for SCHW stock?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 7 / 10 and the dividend payout ratio is 34.48%.