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SCHW (Charles Schwab) Piotroski F-Score : 5 (As of Oct. 29, 2024)


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What is Charles Schwab Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Charles Schwab has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Charles Schwab's Piotroski F-Score or its related term are showing as below:

SCHW' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Charles Schwab was 8. The lowest was 2. And the median was 6.


Charles Schwab Piotroski F-Score Historical Data

The historical data trend for Charles Schwab's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Charles Schwab Piotroski F-Score Chart

Charles Schwab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 5.00 4.00 5.00 6.00

Charles Schwab Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 6.00 6.00 5.00 -

Competitive Comparison of Charles Schwab's Piotroski F-Score

For the Capital Markets subindustry, Charles Schwab's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Charles Schwab's Piotroski F-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Charles Schwab's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Charles Schwab's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 1125 + 1045 + 1362 + 1332 = $4,864 Mil.
Cash Flow from Operations was -5011 + 20037 + -1349 + -4252 = $9,425 Mil.
Revenue was 4606 + 4459 + 4740 + 4690 = $18,495 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(511505 + 475204 + 493178 + 468784 + 449700) / 5 = $479674.2 Mil.
Total Assets at the begining of this year (Jun23) was $511,505 Mil.
Long-Term Debt & Capital Lease Obligation was $22,449 Mil.
Total Assets was $449,700 Mil.
Total Liabilities was $405,700 Mil.
Net Income was 2020 + 1968 + 1603 + 1294 = $6,885 Mil.

Revenue was 5500 + 5497 + 5116 + 4656 = $20,769 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(637557 + 577563 + 551772 + 535552 + 511505) / 5 = $562789.8 Mil.
Total Assets at the begining of last year (Jun22) was $637,557 Mil.
Long-Term Debt & Capital Lease Obligation was $22,482 Mil.
Total Assets was $511,505 Mil.
Total Liabilities was $474,358 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Charles Schwab's current Net Income (TTM) was 4,864. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Charles Schwab's current Cash Flow from Operations (TTM) was 9,425. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=4864/511505
=0.00950919

ROA (Last Year)=Net Income/Total Assets (Jun22)
=6885/637557
=0.01079903

Charles Schwab's return on assets of this year was 0.00950919. Charles Schwab's return on assets of last year was 0.01079903. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Charles Schwab's current Net Income (TTM) was 4,864. Charles Schwab's current Cash Flow from Operations (TTM) was 9,425. ==> 9,425 > 4,864 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=22449/479674.2
=0.04680052

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=22482/562789.8
=0.03994742

Charles Schwab's gearing of this year was 0.04680052. Charles Schwab's gearing of last year was 0.03994742. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun24)=Total Assets/Total Liabilities
=449700/405700
=1.10845452

Current Ratio (Last Year: Jun23)=Total Assets/Total Liabilities
=511505/474358
=1.07831005

Charles Schwab's current ratio of this year was 1.10845452. Charles Schwab's current ratio of last year was 1.07831005. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Charles Schwab's number of shares in issue this year was 1834. Charles Schwab's number of shares in issue last year was 1825. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=4864/18495
=0.26299

Net Margin (Last Year: TTM)=Net Income/Revenue
=6885/20769
=0.33150368

Charles Schwab's net margin of this year was 0.26299. Charles Schwab's net margin of last year was 0.33150368. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=18495/511505
=0.036158

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=20769/637557
=0.03257591

Charles Schwab's asset turnover of this year was 0.036158. Charles Schwab's asset turnover of last year was 0.03257591. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+0+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Charles Schwab has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Charles Schwab  (NYSE:SCHW) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Charles Schwab Piotroski F-Score Related Terms

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Charles Schwab Business Description

Address
3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab operates in brokerage, wealth management, banking, and asset management. It runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website, and it has mobile trading capabilities. It also operates a bank and a proprietary asset-management business and offers services to independent investment advisors. Schwab is among the largest firms in the investment business, with over $8 trillion of client assets at the end of December 2023. Nearly all of its revenue is from the United States.
Executives
Carolyn Schwab-pomerantz director 3000 SCHWAB WAY, WESTLAKE TX 76262
Charles R. Schwab director, officer: Co-Chairman PO BOX 2226, PALM BEACH FL 33480
Richard A Wurster officer: President 3000 SCHWAB WAY, WESTLAKE TX 76262
Walter W Bettinger officer: EVP/COO - Individual Investor 211 MAIN STREET, SAN FRANCISCO CA 94105
Bernard J. Clark officer: MD, Head of Adivsor Services C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Peter B. Crawford officer: CFO 211 MAIN STREET, SAN FRANCISCO CA 94105
Stephen A Ellis director C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Morgan Peter J. Iii officer: General Counsel 211 MAIN STREET, SAN FRANCISCO CA 94105
Nigel J Murtagh officer: MD, EVP - Corporate Risk C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Arun Sarin director C/O SAFEWAY INC., 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Joseph R Martinetto officer: MD and COO 211 MAIN STREET, SAN FRANCISCO CA 94105
Mark A Goldfarb director C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105
Adams John K Jr director 300 CONTINENTAL DRIVE, NEWARK DE 19713
Jonathan M. Craig officer: Please see remarks 3000 SCHWAB WAY, WESTLAKE TX 76262
Frank C Herringer director