SCHWAB (CHARLES) CORP (SCHW)
US8085131055 - Common Stock
Taking everything into account, SCHW scores 3 out of 10 in our fundamental rating. SCHW was compared to 222 industry peers in the Capital Markets industry. SCHW may be in some trouble as it scores bad on both profitability and health. SCHW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SCHW had positive earnings in the past year.
SCHW had a positive operating cash flow in the past year.
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
The Return On Assets of SCHW (0.93%) is worse than 66.67% of its industry peers.
SCHW has a Return On Equity (10.30%) which is in line with its industry peers.
SCHW has a worse Return On Invested Capital (1.35%) than 75.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 10.3% | ||
| 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
SCHW has a Profit Margin (17.05%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW has a Operating Margin (24.83%) which is in line with its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
The Gross Margin of SCHW (72.09%) is better than 74.07% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.83% | ||
| PM (TTM) | 17.05% | ||
| GM | 72.09% |
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.
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 -0.36. 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 -0.36. This is amonst the worse of the industry: SCHW underperforms 87.50% of its industry peers.
SCHW has a debt to FCF ratio of 41.79. This is a negative value and a sign of low solvency as SCHW would need 41.79 years to pay back of all of its debts.
SCHW's Debt to FCF ratio of 41.79 is in line compared to the rest of the industry. SCHW outperforms 44.91% of its industry peers.
A Debt/Equity ratio of 7.66 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW's Debt to Equity ratio of 7.66 is on the low side compared to the rest of the industry. SCHW is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.66 | ||
| Debt/FCF | 41.79 | ||
| Altman-Z | -0.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current Ratio of 0.25. 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 0.25, SCHW is doing worse than 85.19% of the companies in the same industry.
A Quick Ratio of 0.25 indicates that SCHW may have some problems paying its short term obligations.
SCHW's Quick ratio of 0.25 is on the low side compared to the rest of the industry. SCHW is outperformed by 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for SCHW have decreased strongly by -24.55% in the last year.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 1.65%.
The Revenue has been growing by 18.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-24.55%
EPS 3Y11.14%
EPS 5Y5.02%
EPS Q2Q%-2.67%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Sales Q2Q%0.73%
3.2 Future
Based on estimates for the next years, SCHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% on average per year.
The Revenue is expected to grow by 8.62% on average over the next years. This is quite good.
EPS Next Y6.6%
EPS Next 2Y18.72%
EPS Next 3Y19.81%
EPS Next 5Y14.48%
Revenue Next Year4.16%
Revenue Next 2Y9.49%
Revenue Next 3Y9.81%
Revenue Next 5Y8.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.81, the valuation of SCHW can be described as rather expensive.
65.28% of the companies in the same industry are cheaper than SCHW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (24.41), we can say SCHW is valued inline with the index average.
A Price/Forward Earnings ratio of 15.10 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 (20.59), we can say SCHW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 70.37% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 17.6 |
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 19.81% in the coming years.
PEG (NY)3.45
PEG (5Y)4.54
EPS Next 2Y18.72%
EPS Next 3Y19.81%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.54%.
Compared to an average industry Dividend Yield of 7.46, SCHW is paying slightly less dividend.
SCHW's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 16.06%!
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
51.98% 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.
DP51.98%
EPS Next 2Y18.72%
EPS Next 3Y19.81%
SCHWAB (CHARLES) CORP
NYSE:SCHW (7/26/2024, 5:33:32 PM)
After market: 66.48 -0.12 (-0.18%)66.6
+0.36 (+0.54%)
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 Cap121.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 | 22.81 | ||
| Fwd PE | 15.1 | ||
| 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)3.45
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 10.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.83% | ||
| PM (TTM) | 17.05% | ||
| GM | 72.09% | ||
| 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 | 7.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.55%
EPS 3Y11.14%
EPS 5Y
EPS Q2Q%
EPS Next Y6.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.65%
Revenue growth 3Y28.21%
Revenue growth 5Y
Sales 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