The Charles Schwab Corp. (SCHW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cboe Global Markets, Inc.

The Charles Schwab Corp.

Nasdaq, Inc.

Ameriprise Financial, Inc.

Intercontinental Exchange, Inc.

CME Group, Inc.

LPL Financial Holdings, Inc.

The Bank of New York Mellon Corp.

Morgan Stanley

State Street Corp.

The Goldman Sachs Group, Inc.

Why is The Charles Schwab Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.84%

Healthy long term growth as Operating profit has grown by an annual rate of 20.30%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 40,028 MM
INTEREST COVERAGE RATIO(Q) Highest at 880.65
NET SALES(Q) Highest at USD 6,816 MM

With ROE of 13.11%, it has a attractive valuation with a 3.57 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 17.76%, its profits have risen by 34.5% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to The Charles Schwab Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Charles Schwab Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

The Charles Schwab Corp.

22.05%

1.22

25.34%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.98%

EBIT Growth (5y)

23.46%

EBIT to Interest (avg)

10.86

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

22.28%

Dividend Payout Ratio

23.23%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

12.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.67

EV to EBIT

13.76

EV to EBITDA

12.47

EV to Capital Employed

3.67

EV to Sales

6.55

PEG Ratio

0.42

Dividend Yield

0.86%

ROCE (Latest)

26.69%

ROE (Latest)

17.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 18,745 MM

ROCE(HY)

Highest at 18.11%

NET SALES(Q)

Highest at USD 7,168 MM

PRE-TAX PROFIT(Q)

Highest at USD 3,180 MM

NET PROFIT(Q)

Highest at USD 2,459 MM

RAW MATERIAL COST(Y)

Fallen by -9.06% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -117.21 %

DIVIDEND PER SHARE(HY)

Highest at USD 0.27

EPS(Q)

Highest at USD 1.33

-4What is not working for the Company

INTEREST(Q)

At USD 522 MM has Grown at 39.95%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 20.3%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.27 times

Here's what is working for The Charles Schwab Corp.

Operating Cash Flow

Highest at USD 18,745 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 7,168 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 3,180 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 2,459 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

EPS

Highest at USD 1.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at -117.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 0.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -9.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The Charles Schwab Corp.

Interest

At USD 522 MM has Grown at 39.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 0.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 20.3%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)