SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
94.52 USD
+0.11 (+0.12%)
94.01 USD
-0.51 (-0.54%)
We assign a fundamental rating of 4 out of 10 to SCHW. SCHW was compared to 235 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally SCHW also has an excellent dividend rating.
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.
In the past 5 years SCHW has always been profitable.
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: 60.43% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 13.73%, SCHW is in the better half of the industry, outperforming 74.04% of the companies in the same industry.
The Return On Invested Capital of SCHW (2.32%) is worse than 63.40% of its industry peers.
SCHW had an Average Return On Invested Capital over the past 3 years of 1.61%. This is significantly below the industry average of 7.61%.
The 3 year average ROIC (1.61%) for SCHW is below the current ROIC(2.32%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 25.46%, SCHW is doing good in the industry, outperforming 65.96% of the companies in the same industry.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW has a Operating Margin of 35.51%. This is in the better half of the industry: SCHW outperforms 63.83% of its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
The Gross Margin of SCHW (81.09%) is better than 85.11% 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
Compared to 1 year ago, SCHW has more shares outstanding
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.20, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
SCHW's Altman-Z score of -0.20 is on the low side compared to the rest of the industry. SCHW is outperformed by 77.87% of its industry peers.
The Debt to FCF ratio of SCHW is 15.76, which is on the high side as it means it would take SCHW, 15.76 years of fcf income to pay off 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.
The Debt to Equity ratio of SCHW (5.47) is worse than 86.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.47 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | -0.2 |
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 80.85% 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.
Looking at the Quick ratio, with a value of 0.31, SCHW is doing worse than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.11% over the past year.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.62% yearly.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 5.90% 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)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
Based on estimates for the next years, SCHW will show a very strong growth in Earnings Per Share. The EPS will grow by 21.72% on average per year.
Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 12.33% on average per year.
EPS Next Y49.9%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
EPS Next 5Y21.72%
Revenue Next Year21.81%
Revenue Next 2Y15.73%
Revenue Next 3Y13.76%
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 21.00.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.10, SCHW is valued at the same level.
With a Price/Forward Earnings ratio of 16.67, SCHW is valued correctly.
SCHW's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 16.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued a bit cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than 72.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 14.66 |
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 26.96% in the coming years.
PEG (NY)0.42
PEG (5Y)5.79
EPS Next 2Y32.08%
EPS Next 3Y26.96%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 5.55%, which is a nice return.
Compared to an average industry Dividend Yield of 8.36, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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.
The dividend of SCHW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.48%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
94.52
+0.11 (+0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-0.03%
Ins Owners5.99%
Ins Owner Change-6.63%
Market Cap171.57B
Revenue(TTM)27.16B
Net Income(TTM)6.79B
Analysts81.43
Price Target112.2 (18.71%)
Short Float %0.99%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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)0.37%
PT rev (3m)6.23%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)3.07%
EPS NY rev (3m)8.53%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 16.67 | ||
| P/S | 6.43 | ||
| P/FCF | 9.99 | ||
| P/OCF | 9.64 | ||
| P/B | 3.47 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 14.66 |
EPS(TTM)4.5
EY4.76%
EPS(NY)5.67
Fwd EY6%
FCF(TTM)9.46
FCFY10.01%
OCF(TTM)9.81
OCFY10.38%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.42
PEG (5Y)5.79
Graham Number52.52
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%
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-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 | -0.2 |
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)54.11%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%70.13%
EPS Next Y49.9%
EPS Next 2Y32.08%
EPS Next 3Y26.96%
EPS Next 5Y21.72%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year21.81%
Revenue Next 2Y15.73%
Revenue Next 3Y13.76%
Revenue Next 5Y12.33%
EBIT growth 1Y48.8%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.63%
EBIT Next 3Y25.38%
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%
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 5 / 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 21 and the Price/Book (PB) ratio is 3.47.
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 34.48%.