SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
99.91 USD
-0.64 (-0.64%)
99.9 USD
-0.01 (-0.01%)
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 235 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! SCHW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SCHW was profitable.
In the past year SCHW has reported a negative cash flow from operations.
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
The Return On Assets of SCHW (1.67%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.73%, SCHW is in the better half of the industry, outperforming 78.30% of the companies in the same industry.
SCHW has a Return On Invested Capital of 2.64%. This is in the lower half of the industry: SCHW underperforms 61.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.07%.
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
SCHW has a Profit Margin of 28.60%. This is in the better half of the industry: SCHW outperforms 74.89% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
SCHW's Operating Margin of 39.14% is fine compared to the rest of the industry. SCHW outperforms 71.06% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
SCHW has a better Gross Margin (84.38%) than 89.79% of its industry peers.
In the last couple of years the Gross Margin of SCHW has declined.
| 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
Compared to 1 year ago, SCHW has more shares outstanding
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
Based on the Altman-Z score of -0.17, 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 -0.17, SCHW is doing worse than 75.32% of the companies in the same industry.
SCHW has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.40, SCHW is not doing good in the industry: 83.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW has a Current ratio of 0.33. This is in the lower half of the industry: SCHW underperforms 78.72% 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.
SCHW's Quick ratio of 0.33 is on the low side compared to the rest of the industry. SCHW is outperformed by 78.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.11% 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.
Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 5.90% in the last year.
Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
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
SCHW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.18% yearly.
The Revenue is expected to grow by 13.72% on average over the next years. This is quite good.
EPS Next Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.18%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.20, the valuation of SCHW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.51, SCHW is valued at the same level.
With a Price/Forward Earnings ratio of 17.49, SCHW is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SCHW.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (23.13), we can say SCHW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.92 |
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 26.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)6.13
EPS Next 2Y32.57%
EPS Next 3Y26.98%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 5.93%, which is a nice return.
SCHW's Dividend Yield is comparable with the industry average which is at 6.65.
Compared to an average S&P500 Dividend Yield of 2.00, SCHW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
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.
SCHW has decreased its dividend recently.
Dividend Growth(5Y)8.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
SCHW pays out 30.13% of its income as dividend. This is a sustainable payout ratio.
SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.13%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
99.91
-0.64 (-0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-1.99%
Ins Owners6.12%
Ins Owner Change0.82%
Market Cap177.53B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.71
Price Target113.79 (13.89%)
Short Float %1.13%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.93% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP30.13%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)0.96%
PT rev (3m)6.08%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)6.78%
EPS NY rev (1m)0.19%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 17.49 | ||
| P/S | 6.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.59 | ||
| P/tB | 5.9 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)4.5
EY4.5%
EPS(NY)5.71
Fwd EY5.72%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.43
PEG (5Y)6.13
Graham Number53.05
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 | -0.17 |
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 Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year68.02%
EBIT Next 3Y27.48%
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.
Can you provide the valuation status for SCHWAB (CHARLES) CORP?
ChartMill assigns a valuation rating of 4 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Fairly Valued.
What is the profitability of SCHW stock?
SCHWAB (CHARLES) CORP (SCHW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SCHWAB (CHARLES) CORP (SCHW) stock?
The Price/Earnings (PE) ratio for SCHWAB (CHARLES) CORP (SCHW) is 22.2 and the Price/Book (PB) ratio is 3.59.
Is the dividend of SCHWAB (CHARLES) CORP sustainable?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 7 / 10 and the dividend payout ratio is 30.13%.