SCHWAB (CHARLES) CORP (SCHW)

US8085131055 - Common Stock

64.62  -0.01 (-0.02%)

Fundamental Rating

3

Overall SCHW gets a fundamental rating of 3 out of 10. We evaluated SCHW against 208 industry peers in the Capital Markets industry. SCHW has a bad profitability rating. Also its financial health evaluation is rather negative. SCHW is quite expensive at the moment. It does show a decent growth rate.



3

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.
SCHW had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

SCHW has a Return On Assets of 1.17%. This is in the lower half of the industry: SCHW underperforms 66.01% of its industry peers.
SCHW has a Return On Equity of 14.67%. This is in the better half of the industry: SCHW outperforms 75.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.65%, SCHW is doing worse than 79.31% of the companies in the same industry.
Industry RankSector Rank
ROA 1.17%
ROE 14.67%
ROIC 1.65%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

The Profit Margin of SCHW (21.71%) is comparable to the rest of the industry.
SCHW's Profit Margin has declined in the last couple of years.
SCHW has a Operating Margin (32.00%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
Looking at the Gross Margin, with a value of 77.83%, SCHW is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
In the last couple of years the Gross Margin of SCHW has declined.
Industry RankSector Rank
OM 32%
PM (TTM) 21.71%
GM 77.83%
OM growth 3Y-13.79%
OM growth 5Y-9.65%
PM growth 3Y-10.17%
PM growth 5Y-9.67%
GM growth 3Y-8.56%
GM growth 5Y-4.35%

0

2. Health

2.1 Basic Checks

There is no outstanding debt for SCHW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

Based on the Altman-Z score of -0.32, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
SCHW has a worse Altman-Z score (-0.32) than 89.16% of its industry peers.
SCHW has a Debt/Equity ratio of 9.23. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.23, SCHW is not doing good in the industry: 89.16% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 9.23
Debt/FCF N/A
Altman-Z -0.32
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 0.28 indicates that SCHW may have some problems paying its short term obligations.
With a Current ratio value of 0.28, SCHW is not doing good in the industry: 83.74% of the companies in the same industry are doing better.
A Quick Ratio of 0.28 indicates that SCHW may have some problems paying its short term obligations.
SCHW's Quick ratio of 0.28 is on the low side compared to the rest of the industry. SCHW is outperformed by 83.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.28
Quick Ratio 0.28

6

3. Growth

3.1 Past

SCHW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.32%.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
The Revenue has grown by 22.58% in the past year. This is a very strong growth!
The Revenue has been growing by 18.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.32%
EPS 3Y11.14%
EPS 5Y5.02%
EPS growth Q2Q-30%
Revenue 1Y (TTM)22.58%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Revenue growth Q2Q7.86%

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 Y10.64%
EPS Next 2Y19.98%
EPS Next 3Y19.74%
EPS Next 5Y15.14%
Revenue Next Year4.73%
Revenue Next 2Y9.05%
Revenue Next 3Y9.41%
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.

2

4. Valuation

4.1 Price/Earnings Ratio

SCHW is valuated rather expensively with a Price/Earnings ratio of 18.25.
Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than 63.55% of the companies in the same industry.
SCHW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.66, SCHW is valued on the expensive side.
61.58% of the companies in the same industry are cheaper than SCHW, based on the Price/Forward Earnings ratio.
SCHW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
Industry RankSector Rank
PE 18.25
Fwd PE 18.66

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 70.44% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.93

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 19.74% in the coming years.
PEG (NY)1.72
PEG (5Y)3.64
EPS Next 2Y19.98%
EPS Next 3Y19.74%

5

5. Dividend

5.1 Amount

SCHW has a Yearly Dividend Yield of 1.55%.
SCHW's Dividend Yield is slightly below the industry average, which is at 8.12.
Compared to the average S&P500 Dividend Yield of 2.48, SCHW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.55%

5.2 History

The dividend of SCHW is nicely growing with an annual growth rate of 20.57%!
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
SCHW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.57%
Div Incr Years2
Div Non Decr Years15

5.3 Sustainability

SCHW pays out 40.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
SCHW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.66%
EPS Next 2Y19.98%
EPS Next 3Y19.74%

SCHWAB (CHARLES) CORP

NYSE:SCHW (2/23/2024, 9:31:09 AM)

64.62

-0.01 (-0.02%)

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 Cap117.78B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
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)
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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)
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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 RankSector Rank
PE 18.25
Fwd PE 18.66
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)1.72
PEG (5Y)3.64
Profitability
Industry RankSector Rank
ROA 1.17%
ROE 14.67%
ROCE
ROIC
ROICexc
ROICexgc
OM 32%
PM (TTM) 21.71%
GM 77.83%
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 RankSector Rank
Debt/Equity 9.23
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.28
Quick Ratio 0.28
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)-4.32%
EPS 3Y11.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.58%
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