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Should we continue shadow Charles Schwab (NYSE:SCHW) executives?
 | By Raphi Shpitalnik | Macroaxis Story |
Lets try to focus on the odds of Charles Schwab to fully recover from the latest fall as its shares went up 1.67%. The company's current daily volatility is 2.18 percent, with a beta of -0.11 and an alpha of -0.19 over DOW. As many millenniums are trying to avoid top fintech, it makes sense to focus on Charles Schwab a little further and try to understand its current market patterns. What exactly are Charles Schwab shareholders getting in October?
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Reviewed by Rifka Kats
Charles Schwab currently holds roughly 67.33 B in cash with 3.38 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 52.24, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Charles Schwab. Your research has to be compared to or analyzed against Charles Schwab's peers to derive any actionable benefits. When done correctly, Charles Schwab's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Charles Schwab Corp.
Investing in Charles Schwab, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Charles Schwab along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Charles Schwab's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Charles Schwab's Liquidity
Charles Schwab financial leverage refers to using borrowed capital as a funding source to finance Charles Schwab Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Charles Schwab financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Charles Schwab's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Charles Schwab's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Charles Schwab's total debt and its cash.
Charles Schwab Gross Profit
Charles Schwab Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Charles Schwab previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Charles Schwab Gross Profit growth over the last 10 years. Please check Charles Schwab's gross profit and other fundamental indicators for more details.
Charles Schwab Correlation with Peers
Investors in Charles can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Charles Schwab Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Charles Schwab and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Charles is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Charles for more details
What is the case for Charles Schwab Investors
Charles Schwab secures Sharpe Ratio (or Efficiency) of -0.0173, which signifies that the company had -0.0173% of return per unit of standard deviation over the last month. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Charles Schwab exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Charles Schwab risk adjusted performance of (0.09), and Mean Deviation of 1.8 to double-check the risk estimate we provide.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Charles Schwab Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.