SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
92.73 USD
+0.93 (+1.01%)
92.73 USD
0 (0%)
Taking everything into account, SCHW scores 4 out of 10 in our fundamental rating. SCHW was compared to 238 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 negative operating cash flow in the past year.
Each year in the past 5 years SCHW has been profitable.
In the past 5 years SCHW always reported a positive cash flow from operatings.
1.2 Ratios
SCHW's Return On Assets of 1.67% is in line compared to the rest of the industry. SCHW outperforms 42.02% of its industry peers.
SCHW has a better Return On Equity (15.73%) than 78.15% of its industry peers.
With a Return On Invested Capital value of 2.64%, SCHW is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SCHW is significantly below the industry average of 6.96%.
The last Return On Invested Capital (2.64%) for SCHW is above the 3 year average (1.61%), which is a sign of increasing profitability.
| 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
SCHW has a Profit Margin of 28.60%. This is in the better half of the industry: SCHW outperforms 73.11% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
Looking at the Operating Margin, with a value of 39.14%, SCHW is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
SCHW's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 84.38%, SCHW belongs to the best of the industry, outperforming 89.08% of the companies in the same industry.
In the last couple of years the Gross Margin of SCHW has declined.
| 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
Compared to 1 year ago, SCHW has more shares outstanding
Compared to 5 years ago, SCHW has more shares outstanding
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
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 78.15% of its industry peers.
SCHW has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.40, SCHW is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW's Current ratio of 0.33 is on the low side compared to the rest of the industry. SCHW is outperformed by 80.67% of its industry peers.
A Quick Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW has a Quick ratio of 0.33. This is amonst the worse of the industry: SCHW underperforms 80.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
SCHW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.11%, which is quite impressive.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.62% yearly.
The Revenue has been growing slightly by 5.90% in the past 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 Y50.98%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
EPS Next 5Y22.18%
Revenue Next Year22.19%
Revenue Next 2Y15.94%
Revenue Next 3Y13.87%
Revenue Next 5Y13.72%
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 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
SCHW is valuated rather expensively with a Price/Earnings ratio of 20.61.
SCHW's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. SCHW is valued slightly cheaper when compared to this.
SCHW is valuated correctly with a Price/Forward Earnings ratio of 16.25.
SCHW's Price/Forward Earnings is on the same level as the industry average.
SCHW is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 16.25 |
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 83.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
SCHW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCHW's earnings are expected to grow with 27.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)5.69
EPS Next 2Y32.51%
EPS Next 3Y27.17%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
SCHW's Dividend Yield is slightly below the industry average, which is at 8.39.
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 | 1.18% |
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.
The dividend of SCHW decreased 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.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.13%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
92.73
+0.93 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-2.02%
Ins Owners5.99%
Ins Owner Change1.02%
Market Cap164.78B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts81.38
Price Target112.71 (21.55%)
Short Float %0.86%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)4.68%
PT rev (3m)5.07%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)6.21%
EPS NY rev (1m)0.72%
EPS NY rev (3m)3.86%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 16.25 | ||
| P/S | 6.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.34 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)4.5
EY4.85%
EPS(NY)5.71
Fwd EY6.15%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.4
PEG (5Y)5.69
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 | -0.19 |
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 Y50.98%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.19%
Revenue Next 2Y15.94%
Revenue Next 3Y13.87%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year60.63%
EBIT Next 3Y25.38%
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 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 20.61 and the Price/Book (PB) ratio is 3.34.
Can you provide the dividend sustainability for SCHW stock?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 5 / 10 and the dividend payout ratio is 30.13%.