SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
93.54 USD
-0.4 (-0.43%)
93.7 USD
+0.16 (+0.17%)
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
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: 60.92% 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 74.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.32%, SCHW is doing worse than 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.61%.
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's Profit Margin of 25.46% is fine compared to the rest of the industry. SCHW outperforms 67.65% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW has a Operating Margin of 35.51%. This is in the better half of the industry: SCHW outperforms 63.03% of its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.09%, SCHW belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
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
The number of shares outstanding for SCHW has been increased compared to 1 year ago.
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
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.
With a Altman-Z score value of -0.20, SCHW is not doing good in the industry: 75.63% of the companies in the same industry are doing better.
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 has a Debt to FCF ratio (15.76) which is comparable to the rest of the industry.
A Debt/Equity ratio of 5.47 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW has a worse Debt to Equity ratio (5.47) than 86.13% 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
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.
The Current ratio of SCHW (0.31) is worse than 80.67% of its industry peers.
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.
The Quick ratio of SCHW (0.31) is worse than 80.67% 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.
SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
SCHW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.15% yearly.
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
The Earnings Per Share is expected to grow by 21.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 12.33% on average per year.
EPS Next Y45.37%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
EPS Next 5Y21.72%
Revenue Next Year20.24%
Revenue Next 2Y15.03%
Revenue Next 3Y13.3%
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
SCHW is valuated rather expensively with a Price/Earnings ratio of 23.62.
SCHW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SCHW is valued at the same level.
Based on the Price/Forward Earnings ratio of 16.88, the valuation of SCHW can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 82.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than the industry average as 72.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 14.51 |
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.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 25.54% in the coming years.
PEG (NY)0.52
PEG (5Y)6.52
EPS Next 2Y30.58%
EPS Next 3Y25.54%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.96, SCHW is paying slightly less dividend.
With a Dividend Yield of 1.15, SCHW pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
34.48% of the earnings are spent on dividend by SCHW. This is a low number and sustainable payout ratio.
The dividend of SCHW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.48%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
93.54
-0.4 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.85%
Inst Owner Change-0.8%
Ins Owners5.98%
Ins Owner Change-5.58%
Market Cap169.80B
Analysts81.43
Price Target107.27 (14.68%)
Short Float %1.12%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)0.64%
PT rev (3m)16.31%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)12.02%
EPS NY rev (1m)5.25%
EPS NY rev (3m)7.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.97%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 16.88 | ||
| P/S | 6.37 | ||
| P/FCF | 9.88 | ||
| P/OCF | 9.54 | ||
| P/B | 3.43 | ||
| P/tB | 5.66 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)3.96
EY4.23%
EPS(NY)5.54
Fwd EY5.92%
FCF(TTM)9.46
FCFY10.12%
OCF(TTM)9.81
OCFY10.49%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.52
PEG (5Y)6.52
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%
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 Y45.37%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
EPS Next 5Y21.72%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%24.75%
Revenue Next Year20.24%
Revenue Next 2Y15.03%
Revenue Next 3Y13.3%
Revenue Next 5Y12.33%
EBIT growth 1Y48.8%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.45%
EBIT Next 3Y25.79%
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%