SCHWAB (CHARLES) CORP (SCHW)
US8085131055 - Common Stock
Overall SCHW gets a fundamental rating of 3 out of 10. We evaluated SCHW against 218 industry peers in the Capital Markets industry. Both the profitability and financial health of SCHW have multiple concerns. 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.
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
With a Return On Assets value of 0.98%, SCHW is not doing good in the industry: 70.23% of the companies in the same industry are doing better.
SCHW has a Return On Equity of 10.02%. This is comparable to the rest of the industry: SCHW outperforms 56.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.40%, SCHW is doing worse than 73.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCHW is significantly below the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.02% | ||
| ROIC | 1.4% |
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 of 17.28%. This is comparable to the rest of the industry: SCHW outperforms 52.56% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
SCHW's Operating Margin of 24.95% is in line compared to the rest of the industry. SCHW outperforms 45.58% of its industry peers.
In the last couple of years the Operating Margin of SCHW has declined.
The Gross Margin of SCHW (72.57%) is better than 74.88% of its industry peers.
SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.95% | ||
| PM (TTM) | 17.28% | ||
| GM | 72.57% |
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.
SCHW has more shares outstanding than it did 5 years ago.
SCHW has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.29, 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 -0.29, SCHW is doing worse than 87.44% of the companies in the same industry.
SCHW has a debt to FCF ratio of 34.81. This is a negative value and a sign of low solvency as SCHW would need 34.81 years to pay back of all of its debts.
SCHW has a Debt to FCF ratio (34.81) which is comparable to the rest of the industry.
A Debt/Equity ratio of 7.04 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW's Debt to Equity ratio of 7.04 is on the low side compared to the rest of the industry. SCHW is outperformed by 87.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.04 | ||
| Debt/FCF | 34.81 | ||
| Altman-Z | -0.29 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.25 indicates that SCHW may have some problems paying its short term obligations.
With a Current ratio value of 0.25, SCHW is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
A Quick Ratio of 0.25 indicates that SCHW may have some problems paying its short term obligations.
The Quick ratio of SCHW (0.25) is worse than 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
SCHW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.51%.
SCHW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.02% yearly.
Looking at the last year, SCHW shows a quite strong growth in Revenue. The Revenue has grown by 14.41% in the last year.
SCHW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.36% yearly.
EPS 1Y (TTM)-17.51%
EPS 3Y11.14%
EPS 5Y5.02%
EPS Q2Q%0%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y28.21%
Revenue growth 5Y18.36%
Sales Q2Q%5.23%
3.2 Future
Based on estimates for the next years, SCHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.48% 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 8.62% on average per year.
EPS Next Y1.71%
EPS Next 2Y11.54%
EPS Next 3Y15.72%
EPS Next 5Y14.48%
Revenue Next Year2.53%
Revenue Next 2Y6.7%
Revenue Next 3Y8.31%
Revenue Next 5Y8.62%
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.
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
Based on the Price/Earnings ratio of 27.62, the valuation of SCHW can be described as expensive.
67.44% of the companies in the same industry are cheaper than SCHW, based on the Price/Earnings ratio.
SCHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.71, the valuation of SCHW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, SCHW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
SCHW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCHW is cheaper than 68.37% of the companies in the same industry.
60.47% of the companies in the same industry are more expensive than SCHW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.6 | ||
| EV/EBITDA | 21.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SCHW's earnings are expected to grow with 15.72% in the coming years.
PEG (NY)16.1
PEG (5Y)5.5
EPS Next 2Y11.54%
EPS Next 3Y15.72%
5. Dividend
5.1 Amount
SCHW has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
SCHW's Dividend Yield is slightly below the industry average, which is at 8.83.
With a Dividend Yield of 1.25, SCHW pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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.
Dividend Growth(5Y)16.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
51.56% of the earnings are spent on dividend by SCHW. This is a bit on the high side, but may be sustainable.
SCHW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.56%
EPS Next 2Y11.54%
EPS Next 3Y15.72%
SCHWAB (CHARLES) CORP
NYSE:SCHW (11/15/2024, 8:04:00 PM)
After market: 80.61 -0.03 (-0.04%)80.64
+0.45 (+0.56%)
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 Cap147.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 20.71 | ||
| 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)16.1
PEG (5Y)5.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 10.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.95% | ||
| PM (TTM) | 17.28% | ||
| GM | 72.57% | ||
| 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 | 7.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| 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 Y1.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.41%
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