Charles Schwab: Shadow-A-Company analysis Competitor analysis The financial information in indicates a profit margin of 16.6%, compared to other brokerage firms that stand at a figure of 25% profit margin for TD Amertide. The stock analysis indicates that the shares of the company are selling for 12.88 an increase of 1.26 % trading as at the above date. This is compared to other brokerage firm that stands at high of 17.3 i. e. its closest competitor- TD Ameritrade but only 0.84% increase from its previous trading. This has been explained towards the diversification of asset management that has been adopted by the company.
Unlike the other brokerage firms, its equity volatility is lower since the shift from trade to both trade and assets leaves at a better position. This is because when share prices fall, this firm can focus on the asset management part. The earnings growth has been researched and findings are that there has been a fall from 17% to 14.1% in this year’s trading. This was explained towards the restricting of the firm in a manner of encompassing trading as well as assets management. The earning per share stands at 0.68 and price earnings ratio of 18.9 as at 9/11/2011.
The earnings per share of TD Amertide stand at1.11 and that of fidelity at 0.59 (Frendrick, 56). This leaves our company at a better position as compared to other firms. The stock value for TD Amertide has dropped by. 74% in an average of one year stock analysis. Revenue of $4.7 billion of this company is compared to the TD Amertide of low of $ 2.73 Billion (TD Amertide Holding Corporation, pp1). On quarterly basis however, the company’s growth is higher with a 5% compared to TD Amertide and that of fidelity (Kiplinger, 37).
The net income of $820 million of the company under analysis stands at the highest rank compared to its two competitors that stands at $ 637.75 million and $138.93 million. The firm is doing excellent in competitor advantage but overall a trend analysis seems to indicate a whole different story from individual firm analysis (Amine et al, 78). Price-to-sales 3.31 Return on Equity 10.70 Operating Margin 31.80 Profit Margin 16.60% The company financials year 2011 (Charles Schwab www, 2011) Financial analysis The revenue figures in the income statement of the company indicate a fall in revenue from $5.39 billion to $4.74 billion in 2008 and 2009 respectively.
The year 2010 experienced a slight increase up to $4.51 billion. The trend can be explained towards the funding with long term debts and the reduced income taxes in the former years i. e. 2009 and 2010. Security transactions of highs of $1.8 billion in the year 2008 and lows of zero trading in this in the following years reduced the overall income earned by the brokerage firm. In the balance sheet for the last three years, a trend towards increase in liabilities of the brokerage firm is seen.
The interest bearing deposits rose up from $23.84 billion in 2008 to $ 50.11 billion. Trend is towards the financial crisis being experienced and also the enrollment of Bank of America and Well Fargo that have a good foothold in the market. This has caused a fall in deposits takings from customers in the brokerage firm. This called for stock sale to the public increasing the common equity to $6.22 billion in 2010 from $4.06 billion in 2008 (Charles Schwab trading, pp. 2). Total liabilities of the firm rose from $47.6 billion in 2008 to a high of $86.34 billion in 2010.
The total assets took the same trend from a low of $51.67 billion in 2008 to $ 92.57 billion in the year 2010. The net loans figures have gone up as well as the receivables for the three year analysis (Hoover, pp. 2). The stock analysis The year review from 2010 all the way to the end of the year has experienced an upward trend in the figures.
This was from highs of 19.69 to lows of 10.56. The focus used was through the mass influence of customers, highs of $60 billion which represents a 25%increase in its share trading. Though some down was experienced in the part of year, this was due to restructuring. This entails moving towards mortgages, full time financial consulting services etc. The share is trading at a low of 12.88 on 8/11/2011. The downward trend in the current year has been explained as cause of the financial crisis in the whole world.
The instability of trading is towards the lesser numbers of investors participating in the stock market (Charles and Gareth, 98). Work cited: Amine Bouchentouf, Brian Dolan, Mark Galant, Paul Mladjenovic, Kerry Pechter, Barbara Rockefeller, Peter J. Sander, Russell Wild, High-Powered Investing All-In-One For dummy publishing, America, 2011 Charles Hill and Gareth Jones, Strategic Management Theory: An Integrated Approach, Cengage Learning, America, 2009 Charles Schwab: Shadow-A-Company analysis http: //: www. Charlesschwab. org. retrieved on 9/11/2011 Frederic Miller, Agnes Vandome, John McBrewster, Fidelity Investments, VDM Publishing House Ltd. , America 2010 56 Hoovers, Hoovers Handbook of Emerging Companies 2004, Amsterdam, Hoovers Business Press, 2004 Kiplingers Personal Finance, 2007, vol 16 (4), Kiplinger publers, Washington, 37 TD Amertide holding coorporation trading, http: //: www. TD Amertide. org, retrieved on 9/11/2011 William Pride, Robert Hughes, Jack Kapoor, Business, Ed. 11, Cengage Learning, America 2011