SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
NYSE:SCHW - New York Stock Exchange, Inc. - US8085131055 - Common Stock
Overall SCHW gets a fundamental rating of 3 out of 10. We evaluated SCHW against 224 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCHW was profitable.
SCHW had a positive operating cash flow in the past year.
Each year in the past 5 years SCHW has been profitable.
Each year in the past 5 years SCHW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.01%, SCHW is doing worse than 68.66% of the companies in the same industry.
The Return On Equity of SCHW (9.93%) is comparable to the rest of the industry.
SCHW has a worse Return On Invested Capital (1.51%) than 71.89% 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 6.64%.
The last Return On Invested Capital (1.51%) for SCHW is above the 3 year average (1.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 9.93% | ||
| ROIC | 1.51% |
ROA(3y)0.98%
ROA(5y)0.94%
ROE(3y)13%
ROE(5y)12.13%
ROIC(3y)1.43%
ROIC(5y)1.33%
1.3 Margins
SCHW's Profit Margin of 18.28% is in line compared to the rest of the industry. SCHW outperforms 53.00% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 26.32%, SCHW perfoms like the industry average, outperforming 47.93% of the companies in the same industry.
In the last couple of years the Operating Margin of SCHW has declined.
The Gross Margin of SCHW (73.07%) is better than 76.50% of its industry peers.
In the last couple of years the Gross Margin of SCHW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.32% | ||
| PM (TTM) | 18.28% | ||
| GM | 73.07% |
OM growth 3Y-12.24%
OM growth 5Y-8.68%
PM growth 3Y-10.17%
PM growth 5Y-9.67%
GM growth 3Y-8.56%
GM growth 5Y-4.35%
2. Health
2.1 Basic Checks
SCHW has less shares outstanding than it did 1 year ago.
SCHW has more shares outstanding than it did 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 -0.30. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.30, SCHW is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 9.13 is in line compared to the rest of the industry. SCHW outperforms 52.53% of its industry peers.
SCHW has a Debt/Equity ratio of 6.40. This is a high value indicating a heavy dependency on external financing.
SCHW's Debt to Equity ratio of 6.40 is on the low side compared to the rest of the industry. SCHW is outperformed by 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.4 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | -0.3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.26 indicates that SCHW may have some problems paying its short term obligations.
The Current ratio of SCHW (0.26) is worse than 81.11% of its industry peers.
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 81.11% 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 for SCHW have decreased strongly by -17.51% in the last year.
Measured over the past 5 years, SCHW shows a small growth in Earnings Per Share. The EPS has been growing by 5.02% on average per year.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 0.41% in the last year.
The Revenue has been growing by 18.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.51%
EPS 3Y11.14%
EPS 5Y5.02%
EPS Q2Q%0%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Sales Q2Q%5.23%
3.2 Future
Based on estimates for the next years, SCHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.82% on average per year.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.82% yearly.
EPS Next Y2.07%
EPS Next 2Y12.28%
EPS Next 3Y16.59%
EPS Next 5Y16.82%
Revenue Next Year3.02%
Revenue Next 2Y7.85%
Revenue Next 3Y9.48%
Revenue Next 5Y9.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.17, the valuation of SCHW can be described as expensive.
67.74% of the companies in the same industry are cheaper than SCHW, based on the Price/Earnings ratio.
SCHW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.96.
A Price/Forward Earnings ratio of 19.36 indicates a rather expensive valuation of SCHW.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, SCHW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 19.36 |
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 70.97% 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 84.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.23 | ||
| EV/EBITDA | 18.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 16.59% in the coming years.
PEG (NY)12.67
PEG (5Y)5.21
EPS Next 2Y12.28%
EPS Next 3Y16.59%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
SCHW's Dividend Yield is slightly below the industry average, which is at 9.56.
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 paid a dividend for at least 10 years, which is 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
48.50% of the earnings are spent on dividend by SCHW. 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 2Y12.28%
EPS Next 3Y16.59%
SCHWAB (CHARLES) CORP
NYSE:SCHW (1/17/2025, 8:26:21 PM)
After market: 77.28 +0.87 (+1.14%)76.41
+0.9 (+1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.68%
Inst Owner Change-0.07%
Ins Owners6.26%
Ins Owner Change8.77%
Market Cap139.87B
Analysts76.55
Price Target83.64 (9.46%)
Short Float %0.81%
Short Ratio1.72
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-DateN/A
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)4.26%
PT rev (3m)12.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0.1%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 19.36 | ||
| P/S | 5.45 | ||
| P/FCF | 4.23 | ||
| P/OCF | 4.17 | ||
| P/B | 2.96 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 18.11 |
EPS(TTM)2.92
EY3.82%
EPS(NY)3.95
Fwd EY5.16%
FCF(TTM)18.08
FCFY23.67%
OCF(TTM)18.32
OCFY23.97%
SpS14.01
BVpS25.79
TBVpS14.96
PEG (NY)12.67
PEG (5Y)5.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 9.93% | ||
| ROCE | 7.31% | ||
| ROIC | 1.51% | ||
| ROICexc | 1.67% | ||
| ROICexgc | 1.89% | ||
| OM | 26.32% | ||
| PM (TTM) | 18.28% | ||
| GM | 73.07% | ||
| FCFM | 129.1% |
ROA(3y)0.98%
ROA(5y)0.94%
ROE(3y)13%
ROE(5y)12.13%
ROIC(3y)1.43%
ROIC(5y)1.33%
ROICexc(3y)1.6%
ROICexc(5y)1.49%
ROICexgc(3y)1.74%
ROICexgc(5y)1.6%
ROCE(3y)11.69%
ROCE(5y)11.69%
ROICexcg growth 3Y17.9%
ROICexcg growth 5Y1.5%
ROICexc growth 3Y16.76%
ROICexc growth 5Y-0.34%
OM growth 3Y-12.24%
OM growth 5Y-8.68%
PM growth 3Y-10.17%
PM growth 5Y-9.67%
GM growth 3Y-8.56%
GM growth 5Y-4.35%
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 | -0.3 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)69.61%
Cap/Depr(5y)103.23%
Cap/Sales(3y)3.97%
Cap/Sales(5y)4.63%
Profit Quality(3y)148.35%
Profit Quality(5y)178.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-17.51%
EPS 3Y11.14%
EPS 5Y5.02%
EPS Q2Q%0%
EPS Next Y2.07%
EPS Next 2Y12.28%
EPS Next 3Y16.59%
EPS Next 5Y16.82%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Sales Q2Q%5.23%
Revenue Next Year3.02%
Revenue Next 2Y7.85%
Revenue Next 3Y9.48%
Revenue Next 5Y9.82%
EBIT growth 1Y-17.42%
EBIT growth 3Y12.52%
EBIT growth 5Y8.08%
EBIT Next Year37.12%
EBIT Next 3Y24.66%
EBIT Next 5Y18.43%
FCF growth 1Y279.6%
FCF growth 3Y44.8%
FCF growth 5Y9.7%
OCF growth 1Y242.08%
OCF growth 3Y41.92%
OCF growth 5Y9.48%