SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
94.33 USD
+1.05 (+1.13%)
94.2 USD
-0.13 (-0.14%)
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
In the past year SCHW was profitable.
In the past year SCHW had a positive cash flow from operations.
Each year in the past 5 years SCHW has been profitable.
SCHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCHW has a worse Return On Assets (1.48%) than 60.76% of its industry peers.
SCHW has a better Return On Equity (13.73%) than 74.68% of its industry peers.
The Return On Invested Capital of SCHW (2.32%) is worse than 64.56% 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 7.61%.
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 67.93% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW has a better Operating Margin (35.51%) than 62.87% of its industry peers.
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 85.23% 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.
The debt/assets ratio for SCHW has been reduced compared to a year ago.
2.2 Solvency
SCHW has an Altman-Z score of -0.20. 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 (-0.20) is worse than 75.95% 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.
With a Debt to FCF ratio value of 15.76, SCHW perfoms like the industry average, outperforming 51.48% of the companies in the same industry.
SCHW has a Debt/Equity ratio of 5.47. This is a high value indicating a heavy dependency on external financing.
SCHW has a worse Debt to Equity ratio (5.47) than 86.08% 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
SCHW has a Current 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 Current ratio, with a value of 0.31, SCHW is doing worse than 80.59% of the companies in the same industry.
A Quick Ratio of 0.31 indicates that SCHW may have some problems paying its short term obligations.
The Quick ratio of SCHW (0.31) is worse than 80.59% of its industry peers.
| 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 35.62% 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 4.64% 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)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
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.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.82, which indicates a rather expensive current valuation of SCHW.
SCHW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, SCHW is valued at the same level.
The Price/Forward Earnings ratio is 17.02, which indicates a rather expensive current valuation of SCHW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
SCHW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCHW indicates a rather cheap valuation: SCHW is cheaper than 81.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 72.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 14.47 |
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)6.57
EPS Next 2Y30.58%
EPS Next 3Y25.54%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.16%.
SCHW's Dividend Yield is slightly below the industry average, which is at 7.96.
Compared to an average S&P500 Dividend Yield of 2.38, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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.
The dividend of SCHW decreased recently.
Dividend Growth(5Y)8.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
34.48% 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.
DP34.48%
EPS Next 2Y30.58%
EPS Next 3Y25.54%
94.33
+1.05 (+1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.85%
Inst Owner Change-0.8%
Ins Owners5.98%
Ins Owner Change-5.58%
Market Cap171.23B
Analysts81.43
Price Target107.27 (13.72%)
Short Float %1.29%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)0.64%
PT rev (3m)16.31%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)12.02%
EPS NY rev (1m)5.25%
EPS NY rev (3m)7.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.97%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 17.02 | ||
| P/S | 6.42 | ||
| P/FCF | 9.97 | ||
| P/OCF | 9.62 | ||
| P/B | 3.46 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 14.47 |
EPS(TTM)3.96
EY4.2%
EPS(NY)5.54
Fwd EY5.87%
FCF(TTM)9.46
FCFY10.03%
OCF(TTM)9.81
OCFY10.4%
SpS14.69
BVpS27.24
TBVpS16.53
PEG (NY)0.53
PEG (5Y)6.57
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 | -0.2 |
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)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%