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.
[s2If current_user_can(access_s2member_level1)]

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

[/s2If]
I hope that this makes you a Confident Investor.

Symbol Stock Price change today
CRTO Criteo SA (ADR) 4.1233%
SCHW Charles Schwab Corp 2.9307%
ADS Alliance Data Systems Corporation 2.8972%
GTN Gray Television, Inc. 2.7523%
SBUX Starbucks Corporation 2.676%
DPZ Domino’s Pizza, Inc. 2.6653%
ILMN Illumina, Inc. 2.2035%
UNH United HealthGroup Inc 1.7265%
HZO MarineMax Inc 1.6529%
TMO Thermo Fisher Scientific Inc. 1.6297%
MIDD Middleby Corp 1.611%
CRUS Cirrus Logic, Inc. 1.3011%
MCK McKesson Corporation 1.3007%
ANET Arista Networks Inc 1.2775%
MKTX MarketAxess Holdings Inc. 1.2314%
ABMD ABIOMED, Inc. 1.1339%
ALXN Alexion Pharmaceuticals, Inc. 1.115%
MEI Methode Electronics Inc. 1.0778%
REGN Regeneron Pharmaceuticals Inc 1.0518%
MRK Merck & Co., Inc. 0.8796%
SWKS Skyworks Solutions Inc 0.8039%
TMUS T-Mobile US Inc 0.7698%
ULTA Ulta Beauty Inc 0.7561%
THRM Gentherm Inc 0.6693%
BKNG Booking Holdings 0.5974%
ADBE Adobe Systems Incorporated 0.4947%
NFLX Netflix, Inc. 0.4511%
AAPL Apple Inc. 0.3466%
TNET TriNet Group Inc 0.3366%
LULU Lululemon Athletica inc. 0.1129%
ALGN Align Technology, Inc. 0.0838%
NVDA NVIDIA Corporation 0.0302%
MU Micron Technology, Inc. 0.0168%
BABA Alibaba Group Holding Ltd -0.0336%
AMZN Amazon.com, Inc. -0.0354%
IBP Installed Building Products Inc -0.3203%
GOOGL Alphabet Inc -0.3536%
STZ Constellation Brands, Inc. -0.404%
AMAT Applied Materials, Inc. -0.7182%
SUI Sun Communities Inc -0.7615%
FB Facebook Inc -0.8293%
LGIH LGI Homes Inc -0.9386%
LRCX Lam Research Corporation -1.1048%
HSKA Heska Corp -1.2468%
TGS Transportadora de Gas del Sur SA (ADR) -1.2493%
CBPO China Biologic Products Holdings, Inc. -1.5751%

Stock ticker Stock name Last Close Recommendation
AAPL Apple Inc. $165.2600 Very Concerned, may need to wait
ABMD ABIOMED, Inc. $300.9500 Concerned, but watch close as good things may happen soon
ADBE Adobe Systems Incorporated $221.6000 Very Concerned, may need to wait
ADS Alliance Data Systems Corporation $203.0500 Very Concerned, may need to wait
ALGN Align Technology, Inc. $249.8500 Very Concerned, may need to wait
ALXN Alexion Pharmaceuticals, Inc. $117.6300 Strong Buy or Hold
AMAT Applied Materials, Inc. $49.6700 Very Concerned, may need to wait
AMZN Amazon.com, Inc. $1566.1300 Strong Buy or Hold
ANET Arista Networks Inc $264.5500 Possible Buy or Hold, but some concerns
AYI Acuity Brands, Inc. $119.7700 Very Concerned, may need to wait
BABA Alibaba Group Holding Ltd $178.5400 Possible Buy or Hold, but some concerns
BKNG Booking Holdings $2178.0000 Strong Buy or Hold
CBPO China Biologic Products Holdings, Inc. $ Very Concerned, may need to wait
CEVA CEVA, Inc. $ Very Concerned, may need to wait
COF Capital One Financial Corp. $90.6200 Very Concerned, may need to wait
CRTO Criteo SA (ADR) $25.7700 Very Concerned, may need to wait
CRUS Cirrus Logic, Inc. $36.4700 Some Concerns, may need to wait
CVCO Cavco Industries, Inc. $170.3500 Very Concerned, may need to wait
DPZ Domino’s Pizza, Inc. $241.7300 Concerned, but watch close as good things may happen soon
EW Edwards Lifesciences Corp $127.3600 Very Concerned, may need to wait
EXR Extra Space Storage, Inc. $89.5900 Strong Buy or Hold
FB Facebook Inc $172.0000 Strong Buy or Hold
GILD Gilead Sciences, Inc. $72.2300 Very Concerned, may need to wait
GOOGL Alphabet Inc $1018.5800 Very Concerned, may need to wait
GTN Gray Television, Inc. $11.3000 Very Concerned, may need to wait
GWR Genesee & Wyoming Inc $71.2000 Concerned, but watch close as good things may happen soon
HDSN Hudson Technologies, Inc. $4.3800 Very Concerned, may need to wait
HSKA Heska Corp $81.6200 Very Concerned, may need to wait
HZO MarineMax Inc $21.6000 Strong Buy or Hold
IBP Installed Building Products Inc $57.7000 Concerned, but watch close as good things may happen soon
ILMN Illumina, Inc. $240.9300 Very Concerned, may need to wait
LGIH LGI Homes Inc $69.2000 Very Concerned, may need to wait
LRCX Lam Research Corporation $185.0600 Very Concerned, may need to wait
LULU Lululemon Athletica inc. $99.8000 Strong Buy or Hold, but there are some concerns
MCK McKesson Corporation $156.2100 Strong Buy or Hold
MEI Methode Electronics Inc. $39.9000 Concerned, but watch close as good things may happen soon
MIDD Middleby Corp $ Concerned, but watch close as good things may happen soon
MKTX MarketAxess Holdings Inc. $198.6300 Very Concerned, may need to wait
MRK Merck & Co., Inc. $58.8700 Very Concerned, may need to wait
MU Micron Technology, Inc. $45.9800 Very Concerned, may need to wait
NFLX Netflix, Inc. $312.4600 Very Concerned, may need to wait
NVDA NVIDIA Corporation $224.9000 Some Concerns, may need to wait
REGN Regeneron Pharmaceuticals Inc $303.6800 Very Concerned, may need to wait
SBUX Starbucks Corporation $57.5700 Very Concerned, may need to wait
SCHW Charles Schwab Corp $55.6800 Strong Buy or Hold
STZ Constellation Brands, Inc. $233.1300 Strong Buy or Hold
SUI Sun Communities Inc $93.8500 Strong Buy or Hold
SWKS Skyworks Solutions Inc $86.7600 Very Concerned, may need to wait
TGS Transportadora de Gas del Sur SA (ADR) $19.0600 Very Concerned, may need to wait
THRM Gentherm Inc $33.8000 Very Concerned, may need to wait
TMO Thermo Fisher Scientific Inc. $210.3500 Very Concerned, may need to wait
TMUS T-Mobile US Inc $60.5100 Very Concerned, may need to wait
TNET TriNet Group Inc $51.6500 Concerned, but watch close as good things may happen soon
ULTA Ulta Beauty Inc $250.9100 Strong Buy or Hold, but there are some concerns

Stock ticker Stock name Last Close Recommendation
AAPL Apple Inc. $165.2400 Very Concerned, may need to wait
ABMD ABIOMED, Inc. $302.6500 Concerned, but watch close as good things may happen soon
ADBE Adobe Systems Incorporated $225.3000 Very Concerned, may need to wait
ADS Alliance Data Systems Corporation $207.7900 Very Concerned, may need to wait
ALGN Align Technology, Inc. $247.1900 Very Concerned, may need to wait
ALXN Alexion Pharmaceuticals, Inc. $107.8300 Very Concerned, may need to wait
AMAT Applied Materials, Inc. $50.1800 Very Concerned, may need to wait
AMZN Amazon.com, Inc. $1517.8490 Strong Buy or Hold
ANET Arista Networks Inc $254.1800 Very Concerned, may need to wait
AYI Acuity Brands, Inc. $128.8200 Very Concerned, may need to wait
BABA Alibaba Group Holding Ltd $175.5700 Very Concerned, may need to wait
BKNG Booking Holdings $2133.6900 Concerned, but watch close as good things may happen soon
CBPO China Biologic Products Holdings, Inc. $87.8500 Concerned, but watch close as good things may happen soon
CEVA CEVA, Inc. $34.6000 Very Concerned, may need to wait
COF Capital One Financial Corp. $97.5000 Concerned, but watch close as good things may happen soon
CRTO Criteo SA (ADR) $28.1100 Possible Buy or Hold, but some concerns
CRUS Cirrus Logic, Inc. $36.0500 Very Concerned, may need to wait
CVCO Cavco Industries, Inc. $168.7000 Very Concerned, may need to wait
DPZ Domino’s Pizza, Inc. $239.4800 Strong Buy or Hold
EW Edwards Lifesciences Corp $137.1900 Very Concerned, may need to wait
EXR Extra Space Storage, Inc. $85.9100 Very Concerned, may need to wait
FB Facebook Inc $165.8400 Concerned, but watch close as good things may happen soon
GILD Gilead Sciences, Inc. $74.0100 Very Concerned, may need to wait
GOOGL Alphabet Inc $1073.8100 Strong Buy or Hold
GTN Gray Television, Inc. $11.7000 Very Concerned, may need to wait
GWR Genesee & Wyoming Inc $71.4400 Strong Buy or Hold
HDSN Hudson Technologies, Inc. $ Very Concerned, may need to wait
HSKA Heska Corp $80.6300 Concerned, but watch close as good things may happen soon
HZO MarineMax Inc $18.1500 Very Concerned, may need to wait
IBP Installed Building Products Inc $57.4500 Possible Buy or Hold, but some concerns
ILMN Illumina, Inc. $245.8500 Strong Buy or Hold
LGIH LGI Homes Inc $69.1000 Very Concerned, may need to wait
LRCX Lam Research Corporation $191.8600 Very Concerned, may need to wait
LULU Lululemon Athletica inc. $96.6400 Strong Buy or Hold, but there are some concerns
MCK McKesson Corporation $148.3300 Strong Buy or Hold
MEI Methode Electronics Inc. $40.0000 Strong Buy or Hold
MIDD Middleby Corp $127.4100 Strong Buy or Hold
MKTX MarketAxess Holdings Inc. $202.0600 Very Concerned, may need to wait
MRK Merck & Co., Inc. $60.2500 Strong Buy or Hold
MU Micron Technology, Inc. $49.0200 Very Concerned, may need to wait
NFLX Netflix, Inc. $318.6700 Concerned, but watch close as good things may happen soon
NVDA NVIDIA Corporation $223.8800 Very Concerned, may need to wait
REGN Regeneron Pharmaceuticals Inc $316.0100 Very Concerned, may need to wait
SBUX Starbucks Corporation $58.1600 Very Concerned, may need to wait
SCHW Charles Schwab Corp $55.3700 Strong Buy or Hold
STZ Constellation Brands, Inc. $228.2600 Very Concerned, may need to wait
SUI Sun Communities Inc $91.5400 Very Concerned, may need to wait
SWKS Skyworks Solutions Inc $88.6400 Very Concerned, may need to wait
TGS Transportadora de Gas del Sur SA (ADR) $19.3000 Very Concerned, may need to wait
THRM Gentherm Inc $34.5000 Very Concerned, may need to wait
TMO Thermo Fisher Scientific Inc. $216.3500 Concerned, but watch close as good things may happen soon
TMUS T-Mobile US Inc $62.2900 Concerned, but watch close as good things may happen soon
TNET TriNet Group Inc $51.2800 Strong Buy or Hold
ULTA Ulta Beauty Inc $238.6600 Strong Buy or Hold, but there are some concerns

Symbol Stock Price change today
SCHW Charles Schwab Corp 2.4404%
ANET Arista Networks Inc 1.6695%
HSKA Heska Corp 1.4606%
MIDD Middleby Corp 1.1568%
LULU Lululemon Athletica inc. 1.0704%
LRCX Lam Research Corporation 0.7984%
MEI Methode Electronics Inc. 0.6289%
ULTA Ulta Beauty Inc 0.3801%
MRK Merck & Co., Inc. 0.324%
THRM Gentherm Inc 0.2107%
MKTX MarketAxess Holdings Inc. -0.0888%
NVDA NVIDIA Corporation -0.1441%
ABMD ABIOMED, Inc. -0.1468%
AMAT Applied Materials, Inc. -0.1758%
TMUS T-Mobile US Inc -0.2372%
SUI Sun Communities Inc -0.3057%
TNET TriNet Group Inc -0.3319%
COF Capital One Financial Corp. -0.3762%
REGN Regeneron Pharmaceuticals Inc -0.4971%
ILMN Illumina, Inc. -0.5003%
TMO Thermo Fisher Scientific Inc. -0.5069%
MCK McKesson Corporation -0.5778%
AYI Acuity Brands, Inc. -0.6678%
DPZ Domino’s Pizza, Inc. -0.7312%
STZ Constellation Brands, Inc. -0.8884%
GILD Gilead Sciences, Inc. -0.9941%
ADBE Adobe Systems Incorporated -1.05%
EW Edwards Lifesciences Corp -1.0609%
FB Facebook Inc -1.0767%
ADS Alliance Data Systems Corporation -1.1055%
GOOGL Alphabet Inc -1.1134%
CRTO Criteo SA (ADR) -1.2195%
BABA Alibaba Group Holding Ltd -1.257%
BKNG Booking Holdings -1.3108%
TGS Transportadora de Gas del Sur SA (ADR) -1.4646%
EXR Extra Space Storage, Inc. -1.4989%
NFLX Netflix, Inc. -1.5119%
MU Micron Technology, Inc. -1.5558%
CBPO China Biologic Products Holdings, Inc. -1.5955%
CEVA CEVA, Inc. -1.683%
IBP Installed Building Products Inc -1.6904%
AMZN Amazon.com, Inc. -1.889%
HZO MarineMax Inc -1.9337%
CVCO Cavco Industries, Inc. -1.9971%
SBUX Starbucks Corporation -2.0601%
GWR Genesee & Wyoming Inc -2.0646%
LGIH LGI Homes Inc -2.0927%
ALGN Align Technology, Inc. -2.2628%
CRUS Cirrus Logic, Inc. -2.6762%
GTN Gray Television, Inc. -2.8689%
SWKS Skyworks Solutions Inc -2.876%
ALXN Alexion Pharmaceuticals, Inc. -3.526%
AAPL Apple Inc. -4.0972%
HDSN Hudson Technologies, Inc. -4.5852%