SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
90.51 USD
+0.02 (+0.02%)
90.51 USD
0 (0%)
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
SCHW had positive earnings in each of the past 5 years.
SCHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.67%, SCHW is in line with its industry, outperforming 41.35% of the companies in the same industry.
SCHW has a Return On Equity of 15.73%. This is in the better half of the industry: SCHW outperforms 78.48% of its industry peers.
SCHW has a Return On Invested Capital of 2.64%. This is in the lower half of the industry: SCHW underperforms 61.60% of its industry peers.
SCHW had an Average Return On Invested Capital over the past 3 years of 1.61%. This is significantly below the industry average of 7.11%.
The 3 year average ROIC (1.61%) for SCHW is below the current ROIC(2.64%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 28.60%, SCHW is in the better half of the industry, outperforming 73.42% of the companies in the same industry.
SCHW's Profit Margin has declined in the last couple of years.
The Operating Margin of SCHW (39.14%) is better than 71.31% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
Looking at the Gross Margin, with a value of 84.38%, SCHW belongs to the top of the industry, outperforming 89.03% of the companies in the same industry.
SCHW's Gross Margin has declined in the last couple of years.
| 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
SCHW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SCHW has been increased compared to 5 years ago.
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
2.2 Solvency
SCHW has an Altman-Z score of -0.19. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
SCHW has a worse Altman-Z score (-0.19) than 77.64% 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.
SCHW has a worse Debt to Equity ratio (5.40) than 85.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCHW has a Current Ratio of 0.33. 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 worse Current ratio (0.33) than 80.59% of its industry peers.
SCHW has a Quick Ratio of 0.33. 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 0.33, SCHW is doing worse than 80.59% of the companies in the same industry.
| 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.
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.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 5.90% in the last 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)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 22.38% on average per year.
Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 12.84% on average per year.
EPS Next Y50.98%
EPS Next 2Y32.51%
EPS Next 3Y27.17%
EPS Next 5Y22.38%
Revenue Next Year22.19%
Revenue Next 2Y15.94%
Revenue Next 3Y13.87%
Revenue Next 5Y12.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 20.11.
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 (25.45), we can say SCHW is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.86 indicates a correct valuation of SCHW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (34.46), we can say SCHW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 82.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.81 |
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.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 27.17% in the coming years.
PEG (NY)0.39
PEG (5Y)5.55
EPS Next 2Y32.51%
EPS Next 3Y27.17%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 8.61, SCHW is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of SCHW is nicely growing with an annual growth rate of 8.99%!
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%
90.51
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.62%
Inst Owner Change-2.01%
Ins Owners5.99%
Ins Owner Change1.87%
Market Cap164.30B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts81.38
Price Target112.71 (24.53%)
Short Float %0.86%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)1.02%
EPS NQ rev (3m)6.21%
EPS NY rev (1m)0.72%
EPS NY rev (3m)3.86%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)2.59%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 15.86 | ||
| P/S | 6.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.33 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 12.81 |
EPS(TTM)4.5
EY4.97%
EPS(NY)5.71
Fwd EY6.3%
FCF(TTM)-0.77
FCFYN/A
OCF(TTM)-0.41
OCFYN/A
SpS14.96
BVpS27.21
TBVpS16.57
PEG (NY)0.39
PEG (5Y)5.55
Graham Number52.48
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 5Y22.38%
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 5Y12.84%
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 20.11 and the Price/Book (PB) ratio is 3.33.
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%.