SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
101.41 USD
+2.59 (+2.62%)
101.56 USD
+0.15 (+0.15%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 238 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 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.
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
SCHW has a Return On Assets (1.67%) which is in line with its industry peers.
The Return On Equity of SCHW (15.73%) is better than 77.73% of its industry peers.
SCHW's Return On Invested Capital of 2.64% is on the low side compared to the rest of the industry. SCHW is outperformed by 61.76% 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 7.00%.
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's Profit Margin of 28.60% is fine compared to the rest of the industry. SCHW outperforms 73.95% of its industry peers.
In the last couple of years the Profit Margin of SCHW has declined.
With a decent Operating Margin value of 39.14%, SCHW is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SCHW has declined.
The Gross Margin of SCHW (84.38%) is better than 89.08% of its industry peers.
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
Compared to 1 year ago, SCHW has more shares outstanding
Compared to 5 years ago, SCHW has more shares outstanding
Compared to 1 year ago, SCHW has an improved debt to assets ratio.
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 77.73% 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.
SCHW has a Debt to Equity ratio of 5.40. This is amonst the worse of the industry: SCHW underperforms 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.17 |
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.
Looking at the Current ratio, with a value of 0.33, SCHW is doing worse than 79.41% of the companies in the same industry.
A Quick Ratio of 0.33 indicates that SCHW may have some problems paying 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 78.99% 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.
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
SCHW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.18% yearly.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.72% yearly.
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
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.
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
A Price/Earnings ratio of 22.54 indicates a rather expensive valuation of SCHW.
SCHW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.61, SCHW is valued at the same level.
With a Price/Forward Earnings ratio of 17.76, SCHW is valued on the expensive side.
SCHW's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.01. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 81.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.75 |
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 27.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)6.22
EPS Next 2Y32.55%
EPS Next 3Y27.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, SCHW has a reasonable but not impressive dividend return.
SCHW's Dividend Yield is slightly below the industry average, which is at 6.43.
Compared to an average S&P500 Dividend Yield of 1.87, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
On average, the dividend of SCHW grows each year by 8.99%, which is quite nice.
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 30.13% 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.
DP30.13%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
101.41
+2.59 (+2.62%)
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 Change0.91%
Market Cap180.20B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.71
Price Target112.2 (10.64%)
Short Float %0.95%
Short Ratio1.82
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)0.26%
EPS NQ rev (3m)6.48%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 17.76 | ||
| P/S | 6.64 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.65 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 13.75 |
EPS(TTM)4.5
EY4.44%
EPS(NY)5.71
Fwd EY5.63%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.44
PEG (5Y)6.22
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 Y51.12%
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 22.54 and the Price/Book (PB) ratio is 3.65.
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%.