| Company name | Charles Schwab Corporation Common Stock |
| Stock ticker | SCHW |
| Live stock price | [stckqut]SCHW[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $45.71 |
| Target stock price (averages with growth) | $83.3 |
| Target stock price (averages with no growth) | $71.77 |
| Target stock price (manual assumptions) | $57.66 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/schw
The Charles Schwab Corporation (CSC), incorporated on November 25, 1986, is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, money management and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services and other corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services as well as retirement business services. The Company’s subsidiaries include Charles Schwab & Co., Inc. (Schwab), which is a securities broker-dealer with over 335 domestic branch offices in 46 states, as well as a branch in each of the Commonwealth of Puerto Rico and London, England, and serves clients in Hong Kong through one of the Company’s subsidiaries, as of December 31, 2016; Charles Schwab Bank (Schwab Bank), which is a federal savings bank located in Nevada, and Charles Schwab Investment Management, Inc. (CSIM), which is the investment advisor for Schwab’s mutual funds referred to as the Schwab Funds, and Schwab’s exchange-traded funds (ETFs), referred to as the Schwab ETFs.
The Company offers a range of products to address individuals’ varying investment and financial needs. Its product offerings include brokerage, mutual funds, ETFs, advice solutions, banking and trust. Brokerage provides a range of brokerage accounts with cash management capabilities. Mutual funds offer third-party mutual funds through the Mutual Fund Marketplace, including no-transaction fee mutual funds through the Mutual Fund OneSource service, which also includes proprietary mutual funds, plus mutual fund trading and clearing services to broker-dealers. Exchange-traded funds provide an offering of ETFs, including various third-party ETFs available without a commission through Schwab ETF OneSource. Advice solutions offer managed portfolios of both third-party mutual funds and ETFs, separately managed accounts, customized personal advice for portfolios, and specialized planning and full-time portfolio management. Banking offers checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans (First Mortgages), home equity loans and lines of credit (HELOCs), and pledged asset lines (PALs). Trust offers trust custody services, personal trust reporting services, and administrative trustee services.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Charles Schwab Corporation Common Stock as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Charles Schwab Corporation Common Stock calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $51.3
- Growth: 0.13
- Current EPS (TTM): $1.8
- P/E: 28
- Future EPS Calc: $3.31
- Future Stock Price Calc: $92.85
- Target stock price: $57.65
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I hope that this makes you a Confident Investor.