SCHWAB (CHARLES) CORP (SCHW)
US8085131055 - Common Stock
SCHW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. Both the profitability and financial health of SCHW have multiple concerns. While showing a medium growth rate, SCHW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SCHW was profitable.
SCHW had a positive operating cash flow in the past year.
Each year in the past 5 years SCHW has been profitable.
SCHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SCHW (0.94%) is worse than 68.27% of its industry peers.
SCHW has a Return On Equity (11.35%) which is in line with its industry peers.
SCHW has a Return On Invested Capital of 1.35%. This is in the lower half of the industry: SCHW underperforms 76.92% 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 8.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 11.35% | ||
| ROIC | 1.35% |
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
With a Profit Margin value of 18.22%, SCHW perfoms like the industry average, outperforming 49.52% of the companies in the same industry.
In the last couple of years the Profit Margin of SCHW has declined.
The Operating Margin of SCHW (26.36%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCHW has declined.
SCHW has a better Gross Margin (73.81%) than 74.52% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.36% | ||
| PM (TTM) | 18.22% | ||
| GM | 73.81% |
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
The number of shares outstanding for SCHW has been reduced compared to 1 year ago.
SCHW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SCHW has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.35, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.35, SCHW is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
SCHW has a debt to FCF ratio of 18.48. This is a negative value and a sign of low solvency as SCHW would need 18.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.48, SCHW is in line with its industry, outperforming 46.63% of the companies in the same industry.
SCHW has a Debt/Equity ratio of 8.52. This is a high value indicating a heavy dependency on external financing.
SCHW has a Debt to Equity ratio of 8.52. This is amonst the worse of the industry: SCHW underperforms 89.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.52 | ||
| Debt/FCF | 18.48 | ||
| Altman-Z | -0.35 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.26 indicates that SCHW may have some problems paying its short term obligations.
SCHW has a Current ratio of 0.26. This is amonst the worse of the industry: SCHW underperforms 82.69% of its industry peers.
SCHW has a Quick Ratio of 0.26. 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 Quick ratio, with a value of 0.26, SCHW is doing worse than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for SCHW have decreased strongly by -20.36% in the last year.
The Earnings Per Share has been growing slightly by 5.02% on average over the past years.
The Revenue has grown by 14.41% in the past year. This is quite good.
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)-20.36%
EPS 3Y11.14%
EPS 5Y5.02%
EPS growth Q2Q-37.61%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Revenue growth Q2Q-0.27%
3.2 Future
The Earnings Per Share is expected to grow by 15.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
EPS Next Y10.47%
EPS Next 2Y18.79%
EPS Next 3Y20.03%
EPS Next 5Y15.14%
Revenue Next Year4.52%
Revenue Next 2Y8.93%
Revenue Next 3Y9.54%
Revenue Next 5Y11.01%
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
A Price/Earnings ratio of 23.87 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 71.15% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. SCHW is around the same levels.
A Price/Forward Earnings ratio of 21.61 indicates a rather expensive valuation of SCHW.
SCHW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SCHW is more expensive than 64.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. SCHW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued a bit cheaper than the industry average as 67.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SCHW is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 17.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 20.03% in the coming years.
PEG (NY)2.28
PEG (5Y)4.75
EPS Next 2Y18.79%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 7.77, SCHW is paying slightly less dividend.
With a Dividend Yield of 1.35, SCHW pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of SCHW grows each year by 16.06%, which is quite nice.
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
SCHW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.06%
Div Incr Years2
Div Non Decr Years15
5.3 Sustainability
48.96% of the earnings are spent on dividend by SCHW. 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.
DP48.96%
EPS Next 2Y18.79%
EPS Next 3Y20.03%
SCHWAB (CHARLES) CORP
NYSE:SCHW (4/25/2024, 11:10:09 AM)
74.71
-0.48 (-0.64%)
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 Cap132.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 | 23.87 | ||
| Fwd PE | 21.61 | ||
| 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)2.28
PEG (5Y)4.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 11.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.36% | ||
| PM (TTM) | 18.22% | ||
| GM | 73.81% | ||
| 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 Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| 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)
Growth
EPS 1Y (TTM)-20.36%
EPS 3Y11.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.41%
Revenue growth 3Y28.21%
Revenue growth 5Y
Revenue growth 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