SCHWAB (CHARLES) CORP (SCHW)
US8085131055 - Common Stock
We assign a fundamental rating of 3 out of 10 to SCHW. SCHW was compared to 220 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. While showing a medium growth rate, SCHW is valued expensive at the moment.
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.
In the past 5 years SCHW has always been profitable.
Each year in the past 5 years SCHW had a positive operating cash flow.
1.2 Ratios
SCHW has a Return On Assets of 1.01%. This is in the lower half of the industry: SCHW underperforms 69.12% of its industry peers.
SCHW's Return On Equity of 9.93% is in line compared to the rest of the industry. SCHW outperforms 55.30% of its industry peers.
SCHW has a worse Return On Invested Capital (1.51%) than 73.27% of its industry peers.
SCHW had an Average Return On Invested Capital over the past 3 years of 1.43%. This is significantly below the industry average of 7.00%.
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 has a Profit Margin (18.28%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
With a Operating Margin value of 26.32%, SCHW perfoms like the industry average, outperforming 47.00% of the companies in the same industry.
SCHW's Operating Margin has declined in the last couple of years.
SCHW has a better Gross Margin (73.07%) than 76.04% 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.
Compared to 5 years ago, SCHW has more shares outstanding
SCHW has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.30, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
SCHW has a Altman-Z score of -0.30. This is amonst the worse of the industry: SCHW underperforms 87.56% of its industry peers.
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.
With a Debt to FCF ratio value of 9.13, SCHW perfoms like the industry average, outperforming 55.76% of the companies in the same industry.
SCHW has a Debt/Equity ratio of 6.40. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.40, SCHW is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
| 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.
With a Current ratio value of 0.26, SCHW is not doing good in the industry: 81.57% of the companies in the same industry are doing better.
SCHW has a Quick 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 Quick ratio, with a value of 0.26, SCHW is doing worse than 81.57% 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.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
The Revenue has been growing slightly by 0.41% in the past 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
SCHW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.09% yearly.
Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 8.78% on average per year.
EPS Next Y1.97%
EPS Next 2Y11.98%
EPS Next 3Y16.16%
EPS Next 5Y15.09%
Revenue Next Year2.66%
Revenue Next 2Y6.93%
Revenue Next 3Y8.56%
Revenue Next 5Y8.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.29, which means the current valuation is very expensive for SCHW.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW indicates a slightly more expensive valuation: SCHW is more expensive than 68.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.77. SCHW is around the same levels.
With a Price/Forward Earnings ratio of 19.56, SCHW is valued on the expensive side.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.38, SCHW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a rather cheap valuation: SCHW is cheaper than 84.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.24 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCHW does not grow enough to justify the current Price/Earnings ratio.
SCHW's earnings are expected to grow with 16.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.36
PEG (5Y)5.24
EPS Next 2Y11.98%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.21%.
Compared to an average industry Dividend Yield of 9.13, SCHW is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.24, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 16.06%!
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)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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.5%
EPS Next 2Y11.98%
EPS Next 3Y16.16%
SCHWAB (CHARLES) CORP
NYSE:SCHW (12/17/2024, 9:28:15 PM)
Premarket: 77.54 +0.78 (+1.02%)76.76
-1.18 (-1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap140.51B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 19.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)13.36
PEG (5Y)5.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 9.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.32% | ||
| PM (TTM) | 18.28% | ||
| GM | 73.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-17.51%
EPS 3Y11.14%
EPS 5Y
EPS Q2Q%
EPS Next Y1.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.41%
Revenue growth 3Y28.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y