SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - NYSE:SCHW - US8085131055 - Common Stock
94.42 USD
-0.18 (-0.19%)
94.42 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SCHW. SCHW was compared to 236 industry peers in the Capital Markets industry. While SCHW is still in line with the averages on profitability rating, there are concerns on its financial health. SCHW is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
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
The Return On Assets of SCHW (1.48%) is worse than 61.02% of its industry peers.
Looking at the Return On Equity, with a value of 13.73%, SCHW is in the better half of the industry, outperforming 73.73% of the companies in the same industry.
With a Return On Invested Capital value of 2.32%, SCHW is not doing good in the industry: 63.98% 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 7.57%.
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
The Profit Margin of SCHW (25.46%) is better than 65.68% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
The Operating Margin of SCHW (35.51%) is better than 63.56% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
SCHW has a Gross Margin of 81.09%. This is amongst the best in the industry. SCHW outperforms 85.17% of its industry peers.
In the last couple of years the Gross Margin of SCHW has declined.
| 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.
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 -0.20. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
SCHW has a Altman-Z score of -0.20. This is in the lower half of the industry: SCHW underperforms 77.97% 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.
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 86.44% 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.
With a Current ratio value of 0.31, SCHW is not doing good in the industry: 81.36% of the companies in the same industry are doing better.
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.
SCHW has a Quick ratio of 0.31. This is amonst the worse of the industry: SCHW underperforms 81.36% 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 54.11% over the past year.
The Earnings Per Share has been growing slightly by 3.62% on average over the past years.
The Revenue has been growing slightly by 5.90% in the past year.
The Revenue has been growing by 17.15% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 12.33% on average over the next years. This is quite good.
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.
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
SCHW is valuated rather expensively with a Price/Earnings ratio of 20.98.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (26.83), we can say SCHW is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.65 indicates a correct valuation of SCHW.
The rest of the industry has a similar Price/Forward Earnings ratio as SCHW.
The average S&P500 Price/Forward Earnings ratio is at 22.82. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
80.08% of the companies in the same industry are more expensive than SCHW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SCHW is valued a bit cheaper than the industry average as 72.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 14.69 |
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 26.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)5.79
EPS Next 2Y32.08%
EPS Next 3Y26.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.56%, SCHW is a good candidate for dividend investing.
SCHW's Dividend Yield is comparable with the industry average which is at 8.53.
Compared to an average S&P500 Dividend Yield of 2.34, SCHW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 8.99%!
SCHW has been paying a dividend for at least 10 years, so it has 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
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%
94.42
-0.18 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-0.12%
Ins Owners5.99%
Ins Owner Change-5.89%
Market Cap171.39B
Revenue(TTM)27.16B
Net Income(TTM)6.79B
Analysts81.43
Price Target107.67 (14.03%)
Short Float %1.22%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
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)2.2%
EPS NQ rev (3m)10.23%
EPS NY rev (1m)0.05%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)4.3%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 16.65 | ||
| P/S | 6.43 | ||
| P/FCF | 9.98 | ||
| P/OCF | 9.63 | ||
| P/B | 3.47 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 14.69 |
EPS(TTM)4.5
EY4.77%
EPS(NY)5.67
Fwd EY6%
FCF(TTM)9.46
FCFY10.02%
OCF(TTM)9.81
OCFY10.39%
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 20.98 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%.