SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
96.65 USD
-0.4 (-0.41%)
96.8 USD
+0.15 (+0.16%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 237 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 growing strongly while it is still valued neutral. This is a good combination!
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.
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
Looking at the Return On Assets, with a value of 1.67%, SCHW is in line with its industry, outperforming 41.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.73%, SCHW is in the better half of the industry, outperforming 77.64% 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 62.03% 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 7.00%.
The last Return On Invested Capital (2.64%) for SCHW is above the 3 year average (1.61%), which is a sign of increasing profitability.
| 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 better Profit Margin (28.60%) than 73.84% 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 71.31% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
With an excellent Gross Margin value of 84.38%, SCHW belongs to the best of the industry, outperforming 89.03% of the companies in the same industry.
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
SCHW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCHW has more shares outstanding
The debt/assets ratio for SCHW has been reduced compared to a year ago.
2.2 Solvency
SCHW has an Altman-Z score of -0.18. 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 -0.18, SCHW is not doing good in the industry: 78.06% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.40 is on the high side and indicates that SCHW has dependencies on debt financing.
With a Debt to Equity ratio value of 5.40, SCHW is not doing good in the industry: 85.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.18 |
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.
With a Current ratio value of 0.33, SCHW is not doing good in the industry: 79.75% of the companies in the same industry are doing better.
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 has a Quick ratio of 0.33. This is in the lower half of the industry: SCHW underperforms 79.32% of its industry peers.
| 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.
SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
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
The Earnings Per Share is expected to grow by 22.18% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 13.72% on average per year.
EPS Next Y51.12%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
EPS Next 5Y22.18%
Revenue Next Year22.35%
Revenue Next 2Y16%
Revenue Next 3Y13.86%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.48 indicates a rather expensive valuation of SCHW.
SCHW's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (26.56), we can say SCHW is valued inline with the index average.
The Price/Forward Earnings ratio is 16.93, which indicates a correct valuation of SCHW.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (23.79), we can say SCHW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 83.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
The 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 27.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)5.93
EPS Next 2Y32.55%
EPS Next 3Y27.03%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.11%.
SCHW's Dividend Yield is slightly below the industry average, which is at 6.13.
With a Dividend Yield of 1.11, SCHW pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
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 2Y32.55%
EPS Next 3Y27.03%
96.65
-0.4 (-0.41%)
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 Change1.31%
Market Cap171.74B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.71
Price Target112.2 (16.09%)
Short Float %0.75%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)0%
PT rev (3m)4.6%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)6.36%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)2.64%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 16.93 | ||
| P/S | 6.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.48 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)4.5
EY4.66%
EPS(NY)5.71
Fwd EY5.91%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.42
PEG (5Y)5.93
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 | -0.18 |
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 Y51.12%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.35%
Revenue Next 2Y16%
Revenue Next 3Y13.86%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year64.75%
EBIT Next 3Y26.6%
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 4 / 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 21.48 and the Price/Book (PB) ratio is 3.48.
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%.