The company currently holds 28.32
B in liabilities with Debt to Equity (D/E) ratio of 0.51, which is about average as compared to similar companies. Charles Schwab has a current ratio of 0.38, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Charles Schwab is UNDERVALUED at 77.70 per share with modest projections ahead.
We determine the current worth of Charles Schwab Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Charles Schwab Corp based exclusively on its
fundamental and basic
technical indicators. By analyzing Charles Schwab's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Charles Schwab's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Charles Schwab. We calculate exposure to Charles Schwab's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Charles Schwab's related companies.
Charles Schwab Corp Investment Alerts
Charles investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Charles Schwab Corp performance across your portfolios.Please check all
investment alerts for Charles
Charles Schwab Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Charles value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Charles Schwab competition to find
correlations between indicators driving the intrinsic value of Charles.
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.
What is the case for Charles Schwab Investors
The entity reported the previous year's revenue of 13.79
B. Net Income was 3.67
B with profit before overhead, payroll, taxes, and interest of 11.34
B.
| 2020 | 2021 (projected) |
Consolidated Income | 1.7 B | 1.83 B | Direct Expenses | 418 M | 362.2 M |
Margins Breakdown
Charles profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Charles Schwab itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Charles Schwab profit margins.
| Operating Margin | 32.97 |
| EBITDA Margin | 36.96 |
| Profit Margin | 23.94 |
Charles Schwab Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The latest value of Charles Schwab Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 5,291,157,895. Also, Charles Schwab Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.
Charles may start a correction in August
Latest downside variance is at 3.58. The Charles Schwab has relatively low volatility with skewness of 0.11 and kurtosis of -0.31. However, we advise all investors to independently investigate The Charles Schwab to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Charles Schwab's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Charles Schwab's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On Charles Schwab
While other companies within the capital markets industry are still a little expensive, even after the recent corrections, Charles Schwab may offer a potential longer-term growth to sophisticated investors. On the whole, as of the 16th of July 2021, our primary 90 days buy vs. sell advice on the venture is
Buy. We believe Charles Schwab is
undervalued with
below average probability of distress for the next two years.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Charles Schwab Corp. Please refer to our
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