SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
NYSE:SCHW - US8085131055 - Common Stock
95.83 USD
+0.01 (+0.01%)
95.7716 USD
-0.06 (-0.06%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 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 growing strongly while it is still valued neutral. This is a good combination!
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.
Each year in the past 5 years SCHW had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.48%, SCHW is not doing good in the industry: 62.45% of the companies in the same industry are doing better.
SCHW's Return On Equity of 13.73% is fine compared to the rest of the industry. SCHW outperforms 66.67% of its industry peers.
SCHW has a worse Return On Invested Capital (2.32%) than 65.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCHW is significantly below the industry average of 7.69%.
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 has a Profit Margin of 25.46%. This is in the better half of the industry: SCHW outperforms 62.03% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
With a Operating Margin value of 35.51%, SCHW perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
SCHW's Operating Margin has declined in the last couple of years.
SCHW has a Gross Margin of 81.09%. This is amongst the best in the industry. SCHW outperforms 83.54% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
SCHW has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.19, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
SCHW has a worse Altman-Z score (-0.19) than 75.53% of its industry peers.
SCHW has a debt to FCF ratio of 15.76. This is a negative value and a sign of low solvency as SCHW would need 15.76 years to pay back of all of its debts.
SCHW has a Debt to FCF ratio (15.76) which is comparable to the rest of the industry.
A Debt/Equity ratio of 5.47 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW's Debt to Equity ratio of 5.47 is on the low side compared to the rest of the industry. SCHW is outperformed by 86.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.47 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | -0.19 |
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.
The Current ratio of SCHW (0.31) is worse than 83.12% of its industry peers.
SCHW has a Quick Ratio of 0.31. 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 Quick ratio of 0.31. This is amonst the worse of the industry: SCHW underperforms 83.12% 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 35.62%, 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.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 4.64% in the last year.
SCHW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.15% yearly.
EPS 1Y (TTM)35.62%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%56.16%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%24.75%
3.2 Future
SCHW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.72% yearly.
The Revenue is expected to grow by 12.33% on average over the next years. This is quite good.
EPS Next Y45.37%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
EPS Next 5Y21.72%
Revenue Next Year20.24%
Revenue Next 2Y15.03%
Revenue Next 3Y13.3%
Revenue Next 5Y12.33%
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
SCHW is valuated rather expensively with a Price/Earnings ratio of 24.20.
Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than the industry average as 61.60% of the companies are valued more cheaply.
SCHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.29, the valuation of SCHW can be described as rather expensive.
SCHW's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (35.82), we can say SCHW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 17.29 |
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 79.32% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SCHW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.13 | ||
| EV/EBITDA | 14.89 |
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 25.54% in the coming years.
PEG (NY)0.53
PEG (5Y)6.68
EPS Next 2Y30.58%
EPS Next 3Y25.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, SCHW has a reasonable but not impressive dividend return.
SCHW's Dividend Yield is slightly below the industry average, which is at 7.89.
Compared to an average S&P500 Dividend Yield of 2.32, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
SCHW pays out 34.48% of its income as dividend. This is a sustainable payout ratio.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.48%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
95.83
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.85%
Inst Owner Change-0.83%
Ins Owners5.98%
Ins Owner Change12.53%
Market Cap173.95B
Analysts81.43
Price Target107.27 (11.94%)
Short Float %1.17%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)5.84%
PT rev (3m)19.72%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)12.81%
EPS NY rev (1m)5.25%
EPS NY rev (3m)7.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.32%
Revenue NY rev (1m)2.8%
Revenue NY rev (3m)3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 17.29 | ||
| P/S | 6.52 | ||
| P/FCF | 10.13 | ||
| P/OCF | 9.77 | ||
| P/B | 3.52 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)3.96
EY4.13%
EPS(NY)5.54
Fwd EY5.78%
FCF(TTM)9.46
FCFY9.88%
OCF(TTM)9.81
OCFY10.24%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.53
PEG (5Y)6.68
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%
ROICexcg growth 3Y13.97%
ROICexcg 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 | -0.19 |
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)35.62%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%56.16%
EPS Next Y45.37%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
EPS Next 5Y21.72%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%24.75%
Revenue Next Year20.24%
Revenue Next 2Y15.03%
Revenue Next 3Y13.3%
Revenue Next 5Y12.33%
EBIT growth 1Y48.8%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.45%
EBIT Next 3Y25.79%
EBIT Next 5Y18.89%
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%