SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
94.39 USD
-0.97 (-1.02%)
94.94 USD
+0.55 (+0.58%)
We assign a fundamental rating of 4 out of 10 to SCHW. SCHW was compared to 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 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 had a positive 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 worse Return On Assets (1.48%) than 60.76% of its industry peers.
SCHW has a better Return On Equity (13.73%) than 75.11% 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 62.45% 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 7.11%.
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 66.24% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW has a better Operating Margin (35.51%) than 66.24% of its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 81.09%, SCHW belongs to the best of the industry, outperforming 85.65% 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.
SCHW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
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.
With a Altman-Z score value of -0.20, SCHW is not doing good in the industry: 78.06% 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.
With a Debt to FCF ratio value of 15.76, SCHW perfoms like the industry average, outperforming 51.48% of the companies in the same industry.
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 86.08% 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
A Current Ratio of 0.31 indicates that SCHW may have some problems paying its short term obligations.
SCHW's Current ratio of 0.31 is on the low side compared to the rest of the industry. SCHW is outperformed by 81.01% of its industry peers.
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.
Measured over the past 5 years, SCHW shows a small growth in Earnings Per Share. The EPS has been growing by 3.62% on average per year.
The Revenue has been growing slightly by 5.90% in the past year.
The Revenue has been growing by 17.15% on average over the past years. This is quite good.
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
Based on estimates for the next years, SCHW will show a very strong growth in Earnings Per Share. The EPS will grow by 22.38% on average per year.
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
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
With a Price/Earnings ratio of 20.98, SCHW is valued on the expensive side.
SCHW's Price/Earnings ratio is in line with the industry average.
SCHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.54, which indicates a correct valuation of SCHW.
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 34.59. SCHW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCHW indicates a rather cheap valuation: SCHW is cheaper than 80.59% of the companies listed 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 70.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 14.65 |
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 27.17% in the coming years.
PEG (NY)0.41
PEG (5Y)5.79
EPS Next 2Y32.51%
EPS Next 3Y27.17%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.53, SCHW is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.48%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
94.39
-0.97 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-2.05%
Ins Owners5.99%
Ins Owner Change-6.59%
Market Cap171.34B
Revenue(TTM)27.16B
Net Income(TTM)6.79B
Analysts81.38
Price Target112.2 (18.87%)
Short Float %0.99%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)4.21%
PT rev (3m)5.26%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)3.81%
EPS NY rev (3m)9.31%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 16.54 | ||
| P/S | 6.42 | ||
| P/FCF | 9.97 | ||
| P/OCF | 9.62 | ||
| P/B | 3.46 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 14.65 |
EPS(TTM)4.5
EY4.77%
EPS(NY)5.71
Fwd EY6.05%
FCF(TTM)9.46
FCFY10.03%
OCF(TTM)9.81
OCFY10.39%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.41
PEG (5Y)5.79
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 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 1Y48.8%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.63%
EBIT Next 3Y25.38%
EBIT Next 5Y19.25%
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 20.98 and the Price/Book (PB) ratio is 3.46.
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 34.48%.