SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
NYSE:SCHW - New York Stock Exchange, Inc. - US8085131055 - Common Stock - Currency: USD
Taking everything into account, SCHW scores 3 out of 10 in our fundamental rating. SCHW was compared to 225 industry peers in the Capital Markets industry. SCHW may be in some trouble as it scores bad on both profitability and health. SCHW is not valued too expensively and it also shows a decent growth rate.
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.
SCHW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SCHW's Return On Assets of 1.01% is on the low side compared to the rest of the industry. SCHW is outperformed by 68.49% of its industry peers.
Looking at the Return On Equity, with a value of 9.93%, SCHW is in line with its industry, outperforming 53.88% of the companies in the same industry.
The Return On Invested Capital of SCHW (1.51%) is worse than 67.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 9.93% | ||
| ROIC | 1.51% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 18.28%, SCHW perfoms like the industry average, outperforming 53.42% of the companies in the same industry.
SCHW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.32%, SCHW is in line with its industry, outperforming 47.49% of the companies in the same industry.
SCHW's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 73.07%, SCHW is doing good in the industry, outperforming 77.63% of the companies in the same industry.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.32% | ||
| PM (TTM) | 18.28% | ||
| GM | 73.07% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of -0.29, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.29, SCHW is doing worse than 83.11% of the companies in the same industry.
SCHW has a debt to FCF ratio of 9.13. This is a negative value and a sign of low solvency as SCHW would need 9.13 years to pay back of all of its debts.
SCHW has a Debt to FCF ratio (9.13) which is in line with its industry peers.
A Debt/Equity ratio of 6.40 is on the high side and indicates that SCHW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.40, SCHW is doing worse than 87.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.4 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | -0.29 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current Ratio of 0.26. 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 0.26, SCHW is doing worse than 84.02% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that SCHW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.26, SCHW is doing worse than 84.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.83% 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.
The Revenue has been growing slightly by 1.87% in the past 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)3.83%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%48.53%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%19.51%
3.2 Future
The Earnings Per Share is expected to grow by 18.60% on average over the next years. This is quite good.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.64% yearly.
EPS Next Y31.96%
EPS Next 2Y28.05%
EPS Next 3Y24.39%
EPS Next 5Y18.6%
Revenue Next Year15.58%
Revenue Next 2Y13.94%
Revenue Next 3Y12.06%
Revenue Next 5Y10.64%
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
A Price/Earnings ratio of 25.18 indicates a quite expensive valuation of SCHW.
Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than the industry average as 63.47% of the companies are valued more cheaply.
SCHW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.30.
A Price/Forward Earnings ratio of 19.08 indicates a rather expensive valuation of SCHW.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (23.06), we can say SCHW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 19.08 |
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 73.97% of the companies listed in the same industry.
SCHW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SCHW is cheaper than 84.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 19.53 |
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.
SCHW's earnings are expected to grow with 24.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)6.95
EPS Next 2Y28.05%
EPS Next 3Y24.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, SCHW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.68, SCHW is paying slightly less dividend.
With a Dividend Yield of 1.32, SCHW pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
On average, the dividend of SCHW grows each year by 16.06%, which is quite nice.
SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
SCHW has decreased its dividend recently.
Dividend Growth(5Y)16.06%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SCHW pays out 48.50% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SCHW is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP48.5%
EPS Next 2Y28.05%
EPS Next 3Y24.39%
81.83
-0.18 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change0.81%
Ins Owners6.26%
Ins Owner Change13.19%
Market Cap149.92B
Analysts77.93
Price Target89.2 (9.01%)
Short Float %0.8%
Short Ratio1.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.24
Dividend Growth(5Y)16.06%
DP48.5%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.25%
Min EPS beat(2)-0.17%
Max EPS beat(2)0.66%
EPS beat(4)2
Avg EPS beat(4)0.86%
Min EPS beat(4)-1.34%
Max EPS beat(4)4.29%
EPS beat(8)5
Avg EPS beat(8)1.02%
EPS beat(12)7
Avg EPS beat(12)0.05%
EPS beat(16)11
Avg EPS beat(16)0.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.62%
Revenue beat(8)2
Avg Revenue beat(8)2.88%
Revenue beat(12)4
Avg Revenue beat(12)2.42%
Revenue beat(16)8
Avg Revenue beat(16)2.35%
PT rev (1m)6.65%
PT rev (3m)15.94%
EPS NQ rev (1m)3.42%
EPS NQ rev (3m)4.42%
EPS NY rev (1m)8.68%
EPS NY rev (3m)10.13%
Revenue NQ rev (1m)1.59%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)2.5%
Revenue NY rev (3m)4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 19.08 | ||
| P/S | 5.85 | ||
| P/FCF | 4.53 | ||
| P/OCF | 4.47 | ||
| P/B | 3.18 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)3.25
EY3.97%
EPS(NY)4.29
Fwd EY5.24%
FCF(TTM)18.07
FCFY22.08%
OCF(TTM)18.3
OCFY22.37%
SpS14
BVpS25.77
TBVpS14.95
PEG (NY)0.79
PEG (5Y)6.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 9.93% | ||
| ROCE | 7.31% | ||
| ROIC | 1.51% | ||
| ROICexc | 1.68% | ||
| ROICexgc | 1.9% | ||
| OM | 26.32% | ||
| PM (TTM) | 18.28% | ||
| GM | 73.07% | ||
| FCFM | 129.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.4 | ||
| Debt/FCF | 9.13 | ||
| Debt/EBITDA | 36.85 | ||
| Cap/Depr | 29.61% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | 409.1% | ||
| Profit Quality | 706.32% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | -0.29 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.83%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%48.53%
EPS Next Y31.96%
EPS Next 2Y28.05%
EPS Next 3Y24.39%
EPS Next 5Y18.6%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%19.51%
Revenue Next Year15.58%
Revenue Next 2Y13.94%
Revenue Next 3Y12.06%
Revenue Next 5Y10.64%
EBIT growth 1Y-17.42%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year56.81%
EBIT Next 3Y22.21%
EBIT Next 5Y17.33%
FCF growth 1Y1074.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1411.46%
OCF growth 3YN/A
OCF growth 5YN/A