SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
101.89 USD
+0.04 (+0.04%)
101.85 USD
-0.04 (-0.04%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 235 industry peers in the Capital Markets industry. SCHW has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCHW is not priced too expensively while it is growing strongly. Keep and eye on this one! SCHW also has an excellent dividend rating.
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.
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
The Return On Assets of SCHW (1.67%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.73%, SCHW is in the better half of the industry, outperforming 78.30% of the companies in the same industry.
The Return On Invested Capital of SCHW (2.64%) is worse than 61.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.07%.
The 3 year average ROIC (1.61%) for SCHW is below the current ROIC(2.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROIC | 2.64% |
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
The Profit Margin of SCHW (28.60%) is better than 74.89% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 39.14%, SCHW is doing good in the industry, outperforming 71.06% of the companies in the same industry.
In the last couple of years the Operating Margin of SCHW has declined.
SCHW has a better Gross Margin (84.38%) than 89.36% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% |
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
SCHW has more shares outstanding than it did 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 -0.16. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SCHW (-0.16) is worse than 77.02% of its industry peers.
A Debt/Equity ratio of 5.40 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW has a Debt to Equity ratio of 5.40. This is amonst the worse of the industry: SCHW underperforms 85.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current Ratio of 0.33. This is a bad value and indicates that SCHW is not financially healthy enough and could expect problems in meeting its short term obligations.
SCHW has a worse Current ratio (0.33) than 80.00% of its industry peers.
SCHW has a Quick Ratio of 0.33. 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 (0.33) is worse than 79.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.11% over the past year.
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.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 5.90% in the last year.
Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
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
The Earnings Per Share is expected to grow by 22.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.72% on average over the next years. This is quite good.
EPS Next Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.18%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.64, the valuation of SCHW can be described as rather expensive.
Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than 60.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. SCHW is around the same levels.
With a Price/Forward Earnings ratio of 17.84, SCHW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, SCHW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.64 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
SCHW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCHW is cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.21 |
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 26.98% in the coming years.
PEG (NY)0.44
PEG (5Y)6.25
EPS Next 2Y32.57%
EPS Next 3Y26.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.93%, SCHW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, SCHW has a dividend in line with its industry peers.
SCHW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 8.99%!
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
30.13% 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.
DP30.13%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
101.89
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-1.99%
Ins Owners6.12%
Ins Owner Change0.82%
Market Cap181.05B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.71
Price Target113.79 (11.68%)
Short Float %0.95%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP30.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)1.61%
Max EPS beat(2)2.99%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)1.21%
Max EPS beat(4)8.23%
EPS beat(8)6
Avg EPS beat(8)2.19%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)0.91%
Revenue beat(2)2
Avg Revenue beat(2)0.08%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.09%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)1.96%
Revenue beat(16)7
Avg Revenue beat(16)1.84%
PT rev (1m)0.96%
PT rev (3m)6.08%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)6.78%
EPS NY rev (1m)0.19%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.64 | ||
| Fwd PE | 17.84 | ||
| P/S | 6.67 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.67 | ||
| P/tB | 6.02 | ||
| EV/EBITDA | 14.21 |
EPS(TTM)4.5
EY4.42%
EPS(NY)5.71
Fwd EY5.61%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.44
PEG (5Y)6.25
Graham Number53.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROCE | 15.28% | ||
| ROIC | 2.64% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 3.28% | ||
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 22.2 | ||
| Cap/Depr | 46.57% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | -0.16 |
F-Score7
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 Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year68.02%
EBIT Next 3Y27.48%
EBIT Next 5Y19.25%
FCF growth 1Y58.86%
FCF growth 3Y19.48%
FCF growth 5Y-24.96%
OCF growth 1Y70.55%
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 4 / 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 22.64 and the Price/Book (PB) ratio is 3.67.
Can you provide the dividend sustainability for SCHW stock?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 7 / 10 and the dividend payout ratio is 30.13%.