E*TRADE Financial Corporation, a financial services company, provides brokerage, and related products and services for traders, investors, registered investment advisors (RIAs), and stock plan administrators and participants.
Undervalued with questionable track record.
Share Price & News
How has E*TRADE Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ETFC's share price has been volatile over the past 3 months.
7 Day Return
US Capital Markets
1 Year Return
US Capital Markets
Return vs Industry: ETFC underperformed the US Capital Markets industry which returned -13.2% over the past year.
Return vs Market: ETFC underperformed the US Market which returned -12.7% over the past year.
Price Volatility Vs. Market
How volatile is E*TRADE Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StBe Sure To Check Out E*TRADE Financial Corporation (NASDAQ:ETFC) Before It Goes Ex-Dividend
2 months ago | Simply Wall StE*TRADE Financial Corporation Just Released Its Full-Year Results And Analysts Are Updating Their Estimates
2 months ago | Simply Wall StHave Insiders Been Buying E*TRADE Financial Corporation (NASDAQ:ETFC) Shares?
Is E*TRADE Financial undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ETFC ($33.98) is trading below our estimate of fair value ($65.02)
Significantly Below Fair Value: ETFC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ETFC is good value based on its PE Ratio (8.8x) compared to the Capital Markets industry average (32.5x).
PE vs Market: ETFC is good value based on its PE Ratio (8.8x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: ETFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ETFC is good value based on its PB Ratio (1.3x) compared to the US Capital Markets industry average (7.2x).
How is E*TRADE Financial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ETFC's earnings are forecast to decline over the next 3 years (-10.1% per year).
Earnings vs Market: ETFC's earnings are forecast to decline over the next 3 years (-10.1% per year).
High Growth Earnings: ETFC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ETFC's revenue is expected to decline over the next 3 years (-3.7% per year).
High Growth Revenue: ETFC's revenue is forecast to decline over the next 3 years (-3.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ETFC's Return on Equity is forecast to be low in 3 years time (13.4%).
How has E*TRADE Financial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ETFC has high quality earnings.
Growing Profit Margin: ETFC's current net profit margins (31.2%) are lower than last year (34.3%).
Past Earnings Growth Analysis
Earnings Trend: ETFC's earnings have grown significantly by 28.4% per year over the past 5 years.
Accelerating Growth: ETFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ETFC had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Capital Markets industry average (9.7%).
Return on Equity
High ROE: ETFC's Return on Equity (14.6%) is considered low.
How is E*TRADE Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: ETFC has a low level of unsold assets or inventory.
Debt Coverage by Assets: ETFC's debt is covered by short term assets (assets are 6.9x debt).
Financial Institutions Analysis
Asset Level: ETFC's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if ETFC has a sufficient allowance for bad loans.
Low Risk Liabilities: ETFC reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if ETFC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: ETFC has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if ETFC has an appropriate level of bad loans.
What is E*TRADE Financial's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ETFC's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: ETFC's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether ETFC's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if ETFC's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (14.5%), ETFC's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ETFC's dividends in 3 years are forecast to be well covered by earnings (28.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Pizzi (44yo)
Mr. Michael A. Pizzi, also known as Mike, serves as President and Director at E*TRADE Bank since August 15, 2019. Mr. Pizzi serves as Chief Executive Officer and Director at E*TRADE Financial Corporation s ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD6.01M) is about average for companies of similar size in the US market ($USD7.36M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Director||0.58yr||US$6.01m||0.086% $6.4m|
|Executive VP & CFO||1.25yrs||US$2.06m||0.025% $1.9m|
|Executive VP||3.5yrs||US$2.44m||0.028% $2.1m|
|Executive Vice President of Institutional||15.17yrs||US$3.75m||0.053% $4.0m|
|Executive VP & Chief Customer Officer||0.83yr||US$3.55m||no data|
|Corporate Controller & Principal Accounting Officer||0.17yr||no data||0.0071% $528.6k|
|Chief Information Officer||0.67yr||no data||0.0024% $178.7k|
|Chief Business Development Officer||11.67yrs||no data||no data|
|Chief Marketing Officer||1.17yrs||no data||no data|
|Chief Human Resources Officer||1.17yrs||no data||no data|
Experienced Management: ETFC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
|CEO & Director||0.58yr||US$6.01m||0.086% $6.4m|
|Independent Director||16.92yrs||US$295.28k||0.023% $1.7m|
|Independent Director||7.33yrs||US$276.35k||0.013% $960.5k|
|Lead Independent Director||3.5yrs||US$307.92k||0.0073% $545.8k|
|Independent Director||6.58yrs||US$293.21k||0.0011% $84.1k|
|Chairman of the Board||6.83yrs||US$544.64k||0.039% $2.9m|
|Independent Director||5.17yrs||US$277.14k||0.011% $837.6k|
|Independent Director||1.58yrs||US$251.51k||0.0045% $338.0k|
|Independent Director||8yrs||US$286.35k||0.014% $1.1m|
|Independent Director||5.25yrs||US$257.51k||0.0044% $331.3k|
Experienced Board: ETFC's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
E*TRADE Financial Corporation's company bio, employee growth, exchange listings and data sources
- Name: E*TRADE Financial Corporation
- Ticker: ETFC
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$7.446b
- Shares outstanding: 219.12m
- Website: https://about.etrade.com
Number of Employees
- E*TRADE Financial Corporation
- Ballston Tower
- 671 North Glebe Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ETFC||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Aug 1996|
|ETRA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Aug 1996|
|ETFC *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Aug 1996|
|0IEO||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Aug 1996|
|ETRA||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Aug 1996|
|A185D9||DB (Deutsche Boerse AG)||5.875%-FRN PERP USD||DE||USD||Aug 2016|
|E1TF34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM||BR||BRL||Dec 2019|
E*TRADE Financial Corporation, a financial services company, provides brokerage, and related products and services for traders, investors, registered investment advisors (RIAs), and stock plan administrators and participants. It offers investor-focused banking products, including sweep deposit accounts; automated trade order placement and execution services; clearing and settlement services; and insurance on qualifying amounts of customer deposits, and other banking and cash management services. The company also provides custody solutions to RIAs; software and services for managing equity compensation plans, student loans, and financial wellness solutions to corporate clients; retail futures transaction services; and investment advisory services. It provides its services through digital platforms; and a network of industry-licensed customer service representatives and financial consultants through phone, email, and online at two national financial centers, as well as in-person at 30 regional financial centers in the United States. E*TRADE Financial Corporation has a strategic alliance with Empower Retirement to deliver an integrated stock plan and retirement benefits experience. The company was founded in 1982 and is headquartered in Arlington, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/30 00:34|
|End of Day Share Price||2020/03/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.