SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
91.8 USD
+1.06 (+1.17%)
91.71 USD
-0.09 (-0.1%)
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. SCHW has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCHW is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
SCHW had positive earnings in the past year.
In the past year SCHW has reported a negative cash flow from operations.
In the past 5 years SCHW has always 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 (1.67%) which is comparable to the rest of the industry.
SCHW has a better Return On Equity (15.73%) than 78.06% of its industry peers.
SCHW has a worse Return On Invested Capital (2.64%) than 62.03% 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 6.96%.
The last Return On Invested Capital (2.64%) for SCHW is above the 3 year average (1.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROIC | 2.64% |
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 (28.60%) than 73.00% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
SCHW has a Operating Margin of 39.14%. This is in the better half of the industry: SCHW outperforms 71.31% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
The Gross Margin of SCHW (84.38%) is better than 89.03% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% |
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
SCHW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCHW has more shares outstanding
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
2.2 Solvency
SCHW has an Altman-Z score of -0.18. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SCHW (-0.18) is worse than 78.06% of its industry peers.
SCHW has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.40, SCHW is doing worse than 85.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.18 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW has a Current ratio of 0.33. This is amonst the worse of the industry: SCHW underperforms 80.59% of its industry peers.
SCHW has a Quick Ratio of 0.33. 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 (0.33) than 80.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.11% over the past year.
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 22.38% yearly.
The Revenue is expected to grow by 12.84% on average over the next years. This is quite good.
EPS Next Y50.98%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
EPS Next 5Y22.38%
Revenue Next Year22.19%
Revenue Next 2Y15.94%
Revenue Next 3Y13.87%
Revenue Next 5Y12.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 20.40, which indicates a rather expensive current valuation of SCHW.
SCHW's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. SCHW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.09, which indicates a correct valuation of SCHW.
The rest of the industry has a similar Price/Forward Earnings ratio as SCHW.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (36.12), we can say SCHW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 83.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.01 |
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 27.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)5.63
EPS Next 2Y32.51%
EPS Next 3Y27.17%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.19%.
SCHW's Dividend Yield is slightly below the industry average, which is at 8.60.
Compared to an average S&P500 Dividend Yield of 2.41, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 8.99%!
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SCHW decreased recently.
Dividend Growth(5Y)8.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
30.13% of the earnings are spent on dividend by SCHW. This is a low number and sustainable payout ratio.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.13%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
91.8
+1.06 (+1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-2.01%
Ins Owners5.99%
Ins Owner Change1.87%
Market Cap166.64B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts81.38
Price Target112.71 (22.78%)
Short Float %0.86%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP30.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)1.61%
Max EPS beat(2)2.99%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)1.21%
Max EPS beat(4)8.23%
EPS beat(8)6
Avg EPS beat(8)2.19%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)0.91%
Revenue beat(2)2
Avg Revenue beat(2)0.08%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.09%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)1.96%
Revenue beat(16)7
Avg Revenue beat(16)1.84%
PT rev (1m)4.68%
PT rev (3m)5.07%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)6.21%
EPS NY rev (1m)0.72%
EPS NY rev (3m)3.86%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 16.09 | ||
| P/S | 6.14 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.37 | ||
| P/tB | 5.54 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)4.5
EY4.9%
EPS(NY)5.71
Fwd EY6.22%
FCF(TTM)-0.77
FCFYN/A
OCF(TTM)-0.41
OCFYN/A
SpS14.96
BVpS27.21
TBVpS16.57
PEG (NY)0.4
PEG (5Y)5.63
Graham Number52.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROCE | 15.28% | ||
| ROIC | 2.64% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 3.28% | ||
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 22.2 | ||
| Cap/Depr | 46.57% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | -0.18 |
F-Score7
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 Y50.98%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
EPS Next 5Y22.38%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.19%
Revenue Next 2Y15.94%
Revenue Next 3Y13.87%
Revenue Next 5Y12.84%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.63%
EBIT Next 3Y25.38%
EBIT Next 5Y19.25%
FCF growth 1Y58.86%
FCF growth 3Y19.48%
FCF growth 5Y-24.96%
OCF growth 1Y70.55%
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 20.4 and the Price/Book (PB) ratio is 3.37.
Can you provide the dividend sustainability for SCHW stock?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 5 / 10 and the dividend payout ratio is 30.13%.