NASDAQ:SCHW
$17.53
(2/9 1:05PM)
-1.1%
| Open | $17.88 |
Mkt Cap | $20.6 Billion |
| High | $17.98 |
52Wk High | $19.87 |
| Low | $17.46 |
52Wk Low | $11.00 |
| Volume | 8.4 Million |
Avg Vol 10D | 15.0 Million |
Ockham's Rating/Recommendation Summary
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SCHW 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 SCHW 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 5.25x and 2.80x respectively.
Utilizing this range we can see that SCHW’s current Price to Sales per share ratio of 4.69x is well above its historical average. This means that SCHW looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 16% just to return SCHW to its historical average.
SCHW Cash Earnings
Looking at SCHW specifically in their Cash Earnings capabilities, Ockham views SCHW as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 9 years of cash earnings levels for SCHW to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 31.14 and a 17.24 low over the same period.
At its current price of $18.07, the Price to Cash Earnings ratio of 22.59 per share for SCHW is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at SCHW must continue on its generation to improve our overall outlook for the stock.
SCHW Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from SCHW against the historic high and low levels over an available data range. Because SCHW has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In SCHW’s case, the estimated annual dividend is $0.24 producing a current dividend yield of 1.33%. The highest dividend yield from SCHW in recent history was 2.18% while the lowest dividend yield was 0.12%. SCHW’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 15.65% above the median which weighs very positively on our analysis of SCHW.
News on SCHW From the Pundits on WSJ Marketbeat
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SCHW from WSJ Marketbeat.
The Charles Schwab Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; SCHW 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.
“… But the move is clearly a response to price cuts by both CHARLES SCHWAB and Fidelity Investments. The entire group is taking a hit from low interest rates and companies can? …”
Interested in SCHW? See What the Pundits Said on WSJ Marketbeat
The Charles Schwab Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on WSJ Marketbeat.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SCHW has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe The Charles Schwab Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SCHW.
“… 95 a trade, while SCHWAB last month reduced its online-trading commissions 31% to a flat $8. 95 for investors who have small accounts or trade infrequently. …”
SCHW Gets Mentioned in the Financial Media
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SCHW from Fox Business.
In comparison to the other stocks that we follow, The Charles Schwab Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on SCHW because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Todd, you are looking at CHARLES SCHWAB which is in the first of the group to lower fees and we have already seen some of follow in the wake of charles. …”
Check Out Power Lunch and News on SCHW
The latest news on Power Lunch in regards to SCHW came through on RazorWire recently.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on SCHW because it trades within the price range that we would expect given current market conditions and fundamentals. In comparison to the other stocks that we follow, The Charles Schwab Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… Rowe price and CHARLES SCHWAB both down, SCHWAB slightly outperforming the market. It's down 2%. Let's go to rick in chicago. > > reporter: thanks. …”
The Charles Schwab Corporation Was Talked About by Countdown to the Closing Bell
News has broken via the television and viral blogs regarding SCHW, so investors should take an interest in learning what was said.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Charles Schwab 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. The Ockham valuation currently has a Fairly Valued stance on SCHW because it trades within the price range that we would expect given current market conditions and fundamentals.
“… CHARLES SCHWAB last month cut its price to $8. 95, so we have somebody following, last week we spoke exclusively with ameritrade saying we will not cut it. …”
Holding SCHW Stock? See What Is Being Discussed on Power Lunch
As always, the latest news on SCHW is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
The Charles Schwab Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. 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; SCHW has received less coverage from the financial media in business television and blogs.
“… Just weeks after CHARLES SCHWAB cut its price to $8. 95. Fidelity plans to wave commissions on 25 etf funds, yet another move on SCHWAB into the etf market. …”
News on SCHW From the Pundits on The Call
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on SCHW from The Call.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on SCHW because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, The Charles Schwab Corporation has actually sunk a bit in comparison to the others.
“… Interestingly, SCHWAB is little changed. Remember, january, the first week of january, they announced their own commission reduction and simplification plan and fidelity is the ... …”
Fast Money Discussed the Latest Development of The Charles Schwab Corporation
The latest news from Fast Money on SCHW is available through Ockham's news analytics platform RazorWire.
The Charles Schwab Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of SCHW, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… n suitland is standing by. What stocks are you watching next week sth. >> there's a bevy of stocks still to go. One thing we're looking at, …”
News Breaking on The Charles Schwab Corporation on Squawk On The Street
News has broken via the television and viral blogs regarding SCHW, so investors should take an interest in learning what was said.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that The Charles Schwab Corporation has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SCHW. The Motley Fool CAPS data suggests that investors believe The Charles Schwab Corporation will beat the market in the foreseeable future.
“… Tdd# 1-800-345-2550 at SCHWAB, we offer a lot more help for a lot less money. Tdd# 1-800-345-2550 because at SCHWAB. . . Tdd# 1-800-345-2550 investors rule. Tdd# ... …”
The Latest News for SCHW Was Just on Closing Bell
The latest news on Closing Bell in regards to SCHW came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SCHW has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe The Charles Schwab Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SCHW.
“… Tdd# 1-800-345-2550 (announcer) at SCHWAB investors rule. Tdd# 1-800-345-2550 are you ready to rule? Tdd# 1-800-345-2550 > > > …”