ETFC Investment Analysis Report & Stock Research, E Trade Financial Corp.

E Trade Financial Corporation (ETFC)

ETFC Stock Report

2-Year Price History

View Larger ETFC Chart
NASDAQ:ETFC
$1.51
(2/9 1:09PM)
+1.3%
Open$1.51 Mkt Cap$2.8 Billion
High$1.53 52Wk High$2.90
Low$1.48 52Wk Low$0.59
Volume21.2 Million Avg Vol 10D51.8 Million

Ockham's Rating/Recommendation Summary

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ETFC Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at ETFC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.58x and 0.88x respectively.

Utilizing this range we can see that ETFC’s current Price to Sales per share ratio of 0.95x is significantly below its average levels historically. In fact, with a current price of $1.46, ETFC is a full 46% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for ETFC.

ETFC Cash Earnings

ETFC is not forecasted to produce positive Cash Earnings this year, based on recent performance. This is not a positive situation, as we would always prefer that a company is producing cash every year. However, it is important to recognize that not all companies or types of companies have the goal of producing positive Cash Earnings either early in their business cycle or following significant turnaround changes. When looking at ETFC, we hesitate to be overly negative on the company, but it is of concern that the company is not profitable at this time. Let's face it, companies cannot remain unprofitable for very long before a change has to be made. This could mean further restructuring or corporate event such as selling assets or spinning off divisions, at any rate a company with negative cash flows is not one that often makes a great investment unless you can acquire it at an extremely depressed price.

ETFC Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. Although they may currently pay a dividend, our data source has no historical record of it for ETFC. Since we cannot apply our historical trend analysis to dividends for ETFC we have a neutral score for the dividend portion of our analysis.

Peer Comparison

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E Trade Financial Corp. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including ETFC) 39.20 6.41 » 76.07 2.36 0.72 » 5.14 15.17% 24.29%
*10 year range does not include current year values
Alliance Data Systems Corp. ADS $2.9 Billion $55.83 9.14 3.76 » 22.46 1.47 0.77 » 3.37 22.68% 22.70%
AmeriCredit Corp. ACF $2.9 Billion $21.32 69.10 3.44 » 201.96 1.63 0.13 » 5.62 11.36% 9.35%
E Trade Financial Corp. ETFC $2.8 Billion $1.49 -1.00 2.52 » 23.50 0.95 0.14 » 4.92 7.64% 8.80%
Affiliated Managers Group Inc AMG $2.6 Billion $62.50 68.51 9.97 » 79.03 3.18 0.71 » 4.68 18.53% 19.34%
Waddell & Reed Financial, Inc. WDR $2.6 Billion $29.90 37.11 7.63 » 51.44 3.38 0.79 » 6.25 15.07% 30.54%
Federated Investors Cl B FII $2.5 Billion $23.98 12.14 7.23 » 25.46 2.15 1.21 » 5.77 8.22% 39.52%
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Squawk On The Street

More News Than Normal on ETFC from Squawk On The Street

We are observing a lot of attention being paid to ETFC in the news, so if you hold the stock you may want to take a look at what is going on.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about E TRADE FINANCIAL CORP.

Learn About RazorWire?
Squawk On The Street

Squawk On The Street: Discussion of Analysts and E Trade Financial Corporation

Wall Street analysts can have a huge affect on stocks, and today Squawk On The Street talked about an analysts' opinion in relation to ETFC.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about E TRADE FINANCIAL CORP.

Learn About RazorWire?
Fox Business

See Who is Talking About News from ETFC on Fox Business

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to E Trade Financial Corporation.

We noticed recently that in comparison to all other stocks we analyze in the news; ETFC has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… David: everything is done on electronic or E TRADE have you educated your readers and nobody tries to bump off a bad certificate? > > have we educated our financial lawyers? …”

Seeking Alpha Wall St Breakfast

News on Earnings Per Share for ETFC on Seeking Alpha Wall St Breakfast

ETFC's earnings per share was discussed on Seeking Alpha Wall St Breakfast which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The price has continued to rise to $1.70 even since we issued the Overvalued stance at a lower price. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. The latest news on ETFC has created quite a stir as the stock is trading $0.24 higher in today's session. Ranking all stocks in terms of news coverage offers some interesting data. In the case of ETFC, it is getting significantly more attention in recent news coverage than we are used to seeing.

“… (PR) E*TRADE Financial (ETFC): Q4 EPS of -$0. 04 in-line. Revenue of $523M (+8%) vs. $241M. Shares +1. 2% AH. (PR, earnings call transcript) Flextronics International ... …”

Closing Bell

E Trade Financial Corporation (ETFC) Discussed on CNBC's Closing Bell

E Trade Financial Corporation is in the news. Find out how this impacts ETFC trading on Ockham Research.

They're still losing money. So this one is priced to perfection. You have to watch out for it and it's down, what, 2.5% here today. And lastly, E-TRADE financial. This will be its tenth consecutive quarterly loss and it has missed seven out of the eight times. And then lastly the nesto dark horse. The one they think is most interesting, 250% of its 50-day end, ten-day average volume today. Toronto zone celestica another,

“… And lastly, E-TRADE financial. This will be its tenth consecutive quarterly loss and it has missed seven out of the eight times. And then lastly the nesto dark horse. …”

Seeking Alpha Wall St Breakfast

Where is the Alpha? Seeking Alpha Wall St Breakfast Talks ETFC

Unlocking profits and finding alpha are goals that every investor shares, and recently Seeking Alpha Wall St Breakfast talked about generating profit with ETFC.

When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that E Trade Financial Corporation has been talked about more than normal recently. Check the news on this stock because there is a catalyst that has allowed this stock to advance 10.96% today. The Motley Fool CAPS data suggests that investors believe E Trade Financial Corporation will beat the market in the foreseeable future. At Ockham, we are not advising buying E Trade Financial Corporation at the current price level because according to our methodology it is not supported by the fundamentals. Even since our report, the price has increased 11.0%.

“… NYB, PX, ROK, SAP, SEIC, SII, SO, STJ, SWK, TEL, UAUA, UTX, VLO, WLP Notable earnings after Wednesday's close: ACF, AF, AMLN, BMC, CCI, CTXS, DRE, ETFC, EWBC, FLEX, FTNT, GMCR, ... …”

The Opening Bell on Fox Business

Stay Current on ETFC's News on The Opening Bell on Fox Business

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on ETFC from The Opening Bell on Fox Business.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; ETFC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… E-TRADE or swab or any of these guys, under $10 for a massive investment. Get in at nine o'clock or 9:30 in the morning eastern at get out at 2:30 in the afternoon if you've ... …”

Street Signs

Street Signs Brings News Related to E Trade Financial Corporation

The latest news from Street Signs on ETFC is available through Ockham's news analytics platform RazorWire.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ETFC has received less coverage from the financial media in business television and blogs.

“… you take a look at kodak, it is the smallest at $1.1 billion. In terms of the actual dollar price, E-TRADE at $1.75 a share …”

Closing Bell

News Developing on Closing Bell for ETFC

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to E Trade Financial Corporation.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, E Trade Financial Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on ETFC because the price has gotten too high to be justified by the fundamentals.

“… But on the flip-side of the coin slm and E-TRADE are both showing more than 5% for aig. Had weakened throughout entire two casino names with international exposure. …”

Squawk On The Street

Interested in ETFC? See What the Pundits Said on Squawk On The Street

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on ETFC from Squawk On The Street.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ETFC has received less coverage from the financial media in business television and blogs.

“… Lastly, want to draw your attention to E TRADE. It's the lowest priced stock in the s&p 500 at a buck 70, one of seven below $5 a share. …”

View All E Trade Financial Corp. Stock News

Key Fundamentals

ETFC - E Trade Financial Corporation Fundamentals
Price (2/9 1:09PM) $1.51
Volume (2/9 1:09PM) 21.2 Million
Last Close Price $1.49
10 Day Average Volume 51.8 Million
13 Week Price Range $1.41 - $1.85
52 Week Price Range $0.59 - $2.90
LTM Revenue $2.9 Billion
 
Shares Outstanding (12/2009) 1.9 Billion
Market Capitalization $2.8 Billion
Shares Held By Institutions 733.3 Million
Institutional Holders 309
% Shares Held By Institutions 65.70%
Earnings Per Share (EPS) ($1.18)
P/E Ratio n/a
Book Value Per Share $1.95
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.10
Fiscal Year Ends December

About E Trade Financial Corp.

E Trade Financial Corporation is considered to operate in the Financial sector. They specifically operate in the Investmnt Brokerage-National business segment contained within the Financial Services industry.

A financial services company which, provides online brokerage and related products and services mainly to individual retail investors, under the brand 'E TRADE Financial'.