The share price of The Charles Schwab Corporation [NYSE: SCHW] inclined by $42.10, presently trading at $42.36. The company’s shares saw 11.97% gains compared to the lowest price in the period of the last 52 weeks, set at $37.83 recorded on 13/06/2019. The last few days have been benevolent to the share price as SCHW fall by -3.57% during the last week, even though the stock is still down by -3.81% compared to -1.57 of all time high it touched on 06/10/19. However, the stock had a poor performance during the past 3 months, roughly losing -4.47%, while additionally dropping -26.09% during the last 12 months. The Charles Schwab Corporation is said to have a 12-month price target set at $50.87. That means that the stock has a strong potential to acquire 8.51% increase from the current trading price.
The Charles Schwab Corporation [NYSE:SCHW]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For The Charles Schwab Corporation [SCHW], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give SCHW an Outperform rating. Its stock price has been found in the range of 37.83 to 58.22. This is compared to its latest closing price of $42.10.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Charles Schwab Corporation [SCHW] is sitting at 2.17. This is compared to 1 month ago, when its average rating was 2.17.
For the quarter ending in Mar-19 The Charles Schwab Corporation [SCHW] generated $2.72 billion in sales. That’s 1.64% higher than the average estimate of $2.68 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 16 Jul (In 32 Days).
Fundamental Analysis of The Charles Schwab Corporation [SCHW]
Now let’s turn to look at profitability: with a current Operating Margin for The Charles Schwab Corporation [SCHW] sitting at +41.51 and its Gross Margin at +85.69, this company’s Net Margin is now 30.60%. These measurements indicate that The Charles Schwab Corporation [SCHW] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 13.86, and its Return on Invested Capital has reached 1.40%. Its Return on Equity is 17.90, and its Return on Assets is 1.30. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SCHW financial performance.
Turning to investigate this organization’s capital structure, The Charles Schwab Corporation [SCHW] has generated a Total Debt to Total Equity ratio of 33.28. Similarly, its Total Debt to Total Capital is 24.97, while its Total Debt to Total Assets stands at 2.32. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 38.43, and its Long-Term Debt to Total Capital is 24.94. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 6.16 and its Total Debt to EBITDA Value is 1.35. The Enterprise Value to Sales for this firm is now 2.61, and its Total Debt to Enterprise Value stands at 0.22. The Charles Schwab Corporation [SCHW] has a Price to Book Ratio of 3.10, a Price to Cash Flow Ratio of 10.21 and P/E Ratio of 16.36. These metrics all suggest that The Charles Schwab Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, The Charles Schwab Corporation [SCHW] earns $563,538 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 0.49 and its Total Asset Turnover is 0.04.
The Charles Schwab Corporation [SCHW] has 1.36B shares outstanding, amounting to a total market cap of $57.77B. Its stock price has been found in the range of 37.83 to 58.22. At its current price, it has moved down by -27.24% from its 52-week high, and it has moved up 11.97% from its 52-week low.
This stock’s Beta value is currently 1.34, which indicates that it is 2.28% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.77. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Charles Schwab Corporation [SCHW] a Reliable Buy?
Shares of The Charles Schwab Corporation [SCHW], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.