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E*TRADE Financial

Nasdaq:ETFC
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ETFC
Nasdaq
$12B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). The last earnings update was 1 day ago. More info.


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ETFC Share Price and Events
7 Day Returns
5.9%
NasdaqGS:ETFC
3%
US Capital Markets
0.8%
US Market
1 Year Returns
-13.1%
NasdaqGS:ETFC
-6.1%
US Capital Markets
5.9%
US Market
ETFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
E*TRADE Financial (ETFC) 5.9% 4% 0.9% -13.1% 101.8% 125.6%
US Capital Markets 3% 3.6% 5.5% -6.1% 57.3% 69.2%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • ETFC underperformed the Capital Markets industry which returned -6.1% over the past year.
  • ETFC underperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
ETFC
Industry
5yr Volatility vs Market

ETFC Value

 Is E*TRADE Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of E*TRADE Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for E*TRADE Financial.

NasdaqGS:ETFC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $31.34 * 15.7%
$4.92
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $31.34
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ETFC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.727 (1 + (1- 21%) (13.77%))
0.87
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.87 * 5.96%)
7.92%

Discounted Cash Flow Calculation for NasdaqGS:ETFC using Excess Returns Model Model

The calculations below outline how an intrinsic value for E*TRADE Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:ETFC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.7% – 7.92%) * $31.34)
$2.44
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.44 / (7.92% - 2.73%)
$47.04
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $31.34 + $47.04
$78.38
NasdaqGS:ETFC Discount to Share Price
Calculation Result
Value per share (USD) From above. $78.38
Current discount Discount to share price of $51.14
= -1 x ($51.14 - $78.38) / $78.38
34.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price E*TRADE Financial is available for.
Intrinsic value
35%
Share price is $51.14 vs Future cash flow value of $78.38
Current Discount Checks
For E*TRADE Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • E*TRADE Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • E*TRADE Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for E*TRADE Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are E*TRADE Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ETFC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.11
NasdaqGS:ETFC Share Price ** NasdaqGS (2019-04-18) in USD $51.14
United States of America Capital Markets Industry PE Ratio Median Figure of 88 Publicly-Listed Capital Markets Companies 30.03x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of E*TRADE Financial.

NasdaqGS:ETFC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ETFC Share Price ÷ EPS (both in USD)

= 51.14 ÷ 4.11

12.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E*TRADE Financial is good value based on earnings compared to the US Capital Markets industry average.
  • E*TRADE Financial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does E*TRADE Financial's expected growth come at a high price?
Raw Data
NasdaqGS:ETFC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
5.1%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 34 Publicly-Listed Capital Markets Companies 2.32x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:ETFC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.43x ÷ 5.1%

2.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E*TRADE Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on E*TRADE Financial's assets?
Raw Data
NasdaqGS:ETFC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.74
NasdaqGS:ETFC Share Price * NasdaqGS (2019-04-18) in USD $51.14
United States of America Capital Markets Industry PB Ratio Median Figure of 166 Publicly-Listed Capital Markets Companies 6.42x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NasdaqGS:ETFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ETFC Share Price ÷ Book Value per Share (both in USD)

= 51.14 ÷ 24.74

2.07x

* Primary Listing of E*TRADE Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • E*TRADE Financial is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess E*TRADE Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. E*TRADE Financial has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ETFC Future Performance

 How is E*TRADE Financial expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is E*TRADE Financial expected to grow at an attractive rate?
  • E*TRADE Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • E*TRADE Financial's earnings growth is positive but not above the United States of America market average.
  • E*TRADE Financial's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ETFC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ETFC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 5.1%
NasdaqGS:ETFC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 3.8%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.8%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ETFC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ETFC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,630 1,353 1
2022-12-31 3,438 1,249 1
2021-12-31 3,219 1,139 6
2020-12-31 3,114 1,084 13
2019-12-31 3,016 1,056 13
NasdaqGS:ETFC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,997 1,051
2018-12-31 2,959 1,686 1,016
2018-09-30 2,875 2,401 875
2018-06-30 2,749 1,996 749
2018-03-31 2,696 886 692
2017-12-31 2,534 582 589
2017-09-30 2,398 844 587
2017-06-30 2,318 907 591
2017-03-31 2,151 2,319 531
2016-12-31 2,090 2,044 552
2016-09-30 2,027 909 514
2016-06-30 1,935 783 222

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • E*TRADE Financial's earnings are expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
  • E*TRADE Financial's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ETFC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from E*TRADE Financial Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ETFC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.55 6.55 6.55 1.00
2022-12-31 5.80 5.80 5.80 1.00
2021-12-31 5.00 5.23 4.58 4.00
2020-12-31 4.62 4.80 4.47 11.00
2019-12-31 4.34 4.45 4.24 10.00
NasdaqGS:ETFC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.11
2018-12-31 3.90
2018-09-30 3.31
2018-06-30 2.79
2018-03-31 2.55
2017-12-31 2.16
2017-09-30 2.14
2017-06-30 2.15
2017-03-31 1.93
2016-12-31 1.99
2016-09-30 1.82
2016-06-30 0.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • E*TRADE Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess E*TRADE Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
E*TRADE Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ETFC Past Performance

  How has E*TRADE Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare E*TRADE Financial's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • E*TRADE Financial has delivered over 20% year on year earnings growth in the past 5 years.
  • E*TRADE Financial's 1-year earnings growth exceeds its 5-year average (51.9% vs 30.9%)
  • E*TRADE Financial's earnings growth has exceeded the US Capital Markets industry average in the past year (51.9% vs 38.6%).
Earnings and Revenue History
E*TRADE Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from E*TRADE Financial Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ETFC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,997.00 1,051.00 1,074.00
2018-12-31 2,959.00 1,016.00 1,071.00
2018-09-30 2,875.00 875.00 1,054.00
2018-06-30 2,749.00 749.00 1,030.00
2018-03-31 2,696.00 692.00 995.00
2017-12-31 2,534.00 589.00 958.00
2017-09-30 2,398.00 587.00 929.00
2017-06-30 2,318.00 591.00 897.00
2017-03-31 2,151.00 531.00 868.00
2016-12-31 2,090.00 552.00 852.00
2016-09-30 2,027.00 514.00 835.00
2016-06-30 1,935.00 222.00 827.00
2016-03-31 1,852.00 381.00 823.00
2015-12-31 1,780.00 268.00 822.00
2015-09-30 1,767.00 220.00 824.00
2015-06-30 1,741.00 459.00 822.00
2015-03-31 1,741.00 236.00 817.00
2014-12-31 1,668.00 293.00 802.00
2014-09-30 1,758.00 310.00 783.00
2014-06-30 1,708.00 271.00 761.00
2014-03-31 1,676.00 148.00 734.00
2013-12-31 1,580.00 86.00 733.00
2013-09-30 1,531.25 -158.06 726.20
2013-06-30 1,500.26 -233.68 731.18
2013-03-31 1,491.41 -140.17 747.67
2012-12-31 1,545.00 -113.00 769.00
2012-09-30 1,503.59 67.13 766.02
2012-06-30 1,563.46 166.45 767.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • E*TRADE Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • E*TRADE Financial used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if E*TRADE Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess E*TRADE Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
E*TRADE Financial has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ETFC Health

 How is E*TRADE Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up E*TRADE Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • E*TRADE Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • E*TRADE Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of E*TRADE Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 8.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from E*TRADE Financial Company Filings, last reported 2 weeks ago.

NasdaqGS:ETFC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,782.00 1,709.00 1,200.00
2018-12-31 6,562.00 2,296.00 3,521.00
2018-09-30 6,766.00 3,752.00 1,826.00
2018-06-30 6,903.00 4,297.00 1,357.00
2018-03-31 6,889.00 4,742.00 1,188.00
2017-12-31 6,931.00 3,288.00 2,692.00
2017-09-30 6,648.00 2,985.00 2,168.00
2017-06-30 6,683.00 3,459.00 2,738.00
2017-03-31 6,444.00 2,612.00 3,997.00
2016-12-31 6,272.00 2,360.00 4,349.00
2016-09-30 6,316.00 1,534.00 4,287.00
2016-06-30 5,785.00 1,595.00 4,214.00
2016-03-31 5,737.00 1,533.00 3,793.00
2015-12-31 5,799.00 3,078.00 3,420.00
2015-09-30 5,812.00 3,211.00 1,692.00
2015-06-30 5,714.00 7,947.00 2,961.00
2015-03-31 5,453.00 7,951.00 2,153.00
2014-12-31 5,375.00 8,052.00 2,362.00
2014-09-30 5,274.00 8,842.00 2,937.00
2014-06-30 5,188.00 8,676.00 3,494.00
2014-03-31 5,032.00 9,153.00 3,119.00
2013-12-31 4,856.00 8,809.00 3,440.00
2013-09-30 4,829.57 8,540.84 3,037.09
2013-06-30 4,760.63 9,329.22 2,416.30
2013-03-31 4,951.83 8,566.11 2,407.54
2012-12-31 4,904.47 8,559.38 3,661.88
2012-09-30 5,093.85 8,809.95 4,427.85
2012-06-30 5,079.61 9,348.80 2,262.91
  • E*TRADE Financial's level of debt (25.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (181.7% vs 25.2% today).
  • Debt is well covered by operating cash flow (98.7%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on E*TRADE Financial's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess E*TRADE Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. E*TRADE Financial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ETFC Dividends

 What is E*TRADE Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.1%
Current annual income from E*TRADE Financial dividends. Estimated to be 1.19% next year.
If you bought $2,000 of E*TRADE Financial shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • E*TRADE Financial's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • E*TRADE Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ETFC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ETFC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.66 5.00
2020-12-31 0.61 7.00
2019-12-31 0.56 6.00
NasdaqGS:ETFC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-24 0.560 1.171
2018-10-18 0.560 1.168

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether E*TRADE Financial has stable dividend payments.
  • E*TRADE Financial only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of E*TRADE Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (14.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (8.4x coverage).
X
Income/ dividend checks
We assess E*TRADE Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can E*TRADE Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. E*TRADE Financial has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ETFC Management

 What is the CEO of E*TRADE Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karl Roessner
COMPENSATION $6,253,098
AGE 50
TENURE AS CEO 2.6 years
CEO Bio

Mr. Karl A. Roessner has been Chief Executive Officer and Director of E*TRADE Financial Corporation since September 2016. Mr. Roessner joined E*TRADE in 2009. Mr. Roessner served as the Executive Vice President and General Counsel of E*TRADE Financial Corporation for more than seven years. During that time, he also served as the Corporate Secretary to the Company’s Board of Directors. He is President of E*TRADE Bank and a member of the E*TRADE Bank board. He was a Partner in the Corporate Practice group of Clifford Chance US LLP. Mr. Roessner earned his B.A. cum laude from Siena College and his J.D. cum laude from St. Johns University School of Law, where he was a Member of the St. John’s University Law Review.

CEO Compensation
  • Karl's compensation has been consistent with company performance over the past year.
  • Karl's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the E*TRADE Financial management team in years:

1.3
Average Tenure
48.5
Average Age
  • The average tenure for the E*TRADE Financial management team is less than 2 years, this suggests a new team.
Management Team

Karl Roessner

TITLE
CEO & Director
COMPENSATION
$6M
AGE
50
TENURE
2.6 yrs

Chad Turner

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
47
TENURE
0.3 yrs

Mike Pizzi

TITLE
Executive VP & COO
COMPENSATION
$5M
AGE
43
TENURE
0.6 yrs

Michael Curcio

TITLE
Executive Vice President of Institutional
COMPENSATION
$4M
AGE
56
TENURE
14.3 yrs

Brett Goodman

TITLE
Chief Communications Officer
TENURE
10.8 yrs

Lori Sher

TITLE
Executive VP
TENURE
2.6 yrs

Paul Brandow

TITLE
Executive VP & Chief Risk Officer
TENURE
1.3 yrs

Michael Kaiser

TITLE
Chief Of Staff

Michael Murphy

TITLE
Senior Vice President of Retail Brokerage
TENURE
1.3 yrs

David Inggs

TITLE
Chief Operations Officer
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the E*TRADE Financial board of directors in years:

5.8
Average Tenure
64.5
Average Age
  • The tenure for the E*TRADE Financial board of directors is about average.
Board of Directors

Rodger Lawson

TITLE
Chairman of the Board
COMPENSATION
$5M
AGE
71
TENURE
5.9 yrs

Karl Roessner

TITLE
CEO & Director
COMPENSATION
$6M
AGE
50
TENURE
2.6 yrs

Donna Weaver

TITLE
Director
COMPENSATION
$287K
AGE
74
TENURE
16 yrs

Becky Saeger

TITLE
Director
COMPENSATION
$285K
AGE
62
TENURE
7.2 yrs

James Lam

TITLE
Director
COMPENSATION
$281K
AGE
57
TENURE
6.4 yrs

Rich Carbone

TITLE
Director
COMPENSATION
$274K
AGE
70
TENURE
5.7 yrs

Kevin Kabat

TITLE
Lead Independent Director
COMPENSATION
$356K
AGE
61
TENURE
2.6 yrs

Joe Sclafani

TITLE
Director
COMPENSATION
$265K
AGE
69
TENURE
10.8 yrs

Shelley Leibowitz

TITLE
Director
COMPENSATION
$258K
AGE
57
TENURE
4.3 yrs

Jim Healy

TITLE
Director
COMPENSATION
$274K
AGE
67
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by E*TRADE Financial insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Feb 19 Buy Robert Chersi Individual 30. Jan 19 30. Jan 19 2,200 $46.24 $101,734
13. Dec 18 Buy James Healy Individual 11. Dec 18 11. Dec 18 5,000 $45.36 $226,791
08. Nov 18 Buy Joshua Weinreich Individual 06. Nov 18 06. Nov 18 5,725 $52.33 $299,588
05. Nov 18 Buy Rodger Lawson Individual 02. Nov 18 05. Nov 18 10,000 $51.27 $512,650
05. Nov 18 Buy Brent Simonich Individual 02. Nov 18 02. Nov 18 1,943 $51.50 $100,072
05. Nov 18 Buy Michael Pizzi Individual 02. Nov 18 02. Nov 18 10,000 $51.67 $516,735
X
Management checks
We assess E*TRADE Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. E*TRADE Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ETFC News

Simply Wall St News

Should You Be Tempted To Sell E*TRADE Financial Corporation (NASDAQ:ETFC) Because Of Its PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind.

Simply Wall St -

At US$0US$61.25, Is E*TRADE Financial Corporation (NASDAQ:ETFC) A Buy?

Let's talk about the popular E*TRADE Financial Corporation (NASDAQ:ETFC). … saw a decent share price growth in the teens level on the NasdaqGS over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

How Does E*TRADE Financial Corporation's (NASDAQ:ETFC) Earnings Growth Stack Up Against Industry Performance?

Assessing E*TRADE Financial Corporation's (NASDAQ:ETFC) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how E*TRADE Financial is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its capital markets industry peers. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 32.48%, indicating the rate at which ETFC is growing has slowed down

Simply Wall St -

How Does E*TRADE Financial Corporation's (NASDAQ:ETFC) Earnings Growth Stack Up Against Industry Performance?

When E*TRADE Financial Corporation (NASDAQ:ETFC) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … While E*TRADE Financial has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future.

Simply Wall St -

Is E*TRADE Financial Corporation (NASDAQ:ETFC) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ETFC Price per share = $64.39 Earnings per share = $2.552 ∴ Price-Earnings Ratio = $64.39 ÷ $2.552 = 25.2x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with ETFC, then ETFC’s P/E would naturally be higher since investors would reward ETFC’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with ETFC, ETFC’s P/E would again be higher since investors would reward ETFC’s lower risk with a higher price as well.

Simply Wall St -

Is E*TRADE Financial Corporation (NASDAQ:ETFC) Expensive For A Reason? A Look At The Intrinsic Value

Looking at line items like book values, along with the return and cost of equity, can be appropriate for evaluating ETFC’s intrinsic value. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (13.09% – 9.65%) * $31.2 = $1.07 Excess Return Per Share is used to calculate the terminal value of ETFC, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $1.07 / (9.65% – 2.47%) = $14.98 These factors are combined to calculate the true value of ETFC's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $31.2 + $14.98 = $46.18 Relative to today's price of $58.06, ETFC is trading above what it's actually worth.

Simply Wall St -

Is E*TRADE Financial Corporation (NASDAQ:ETFC) Undervalued After Accounting For Its Future Growth?

E*TRADE Financial Corporation (NASDAQ:ETFC) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $56.96 is based on unrealistic expectations. … However, to properly examine the value of a high-growth stock such as E*TRADE Financial, we must reflect its earnings growth into the valuation. … Based on this growth, E*TRADE Financial's stock can be considered a bit overvalued , based on fundamental analysis.

Simply Wall St -

E*TRADE Financial Corporation (NASDAQ:ETFC): Poised For Long Term Success?

After E*TRADE Financial Corporation's (NASDAQ:ETFC) earnings announcement in December 2017, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 44.69% in the upcoming year against the past 5-year average growth rate of 32.09%. … To understand the overall trajectory of ETFC's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope. … NasdaqGS:ETFC Future Profit Mar 12th 18 By 2021, ETFC's earnings should reach US$1.05B, from current levels of US$589.00M, resulting in an annual growth rate of 14.46%.

Simply Wall St -

Why E*TRADE Financial Corporation's (NASDAQ:ETFC) ROE Of 9.44% Does Not Tell The Whole Story

E*TRADE Financial Corporation’s (NASDAQ:ETFC) most recent return on equity was a substandard 9.44% relative to its industry performance of 13.60% over the past year. … View our latest analysis for E*TRADE Financial Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:ETFC Last Perf Jan 25th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Where E*TRADE Financial Corporation (NASDAQ:ETFC) Stands In Terms Of Earnings Growth Against Its Industry

Check out our latest analysis for E*TRADE Financial Did ETFC beat its long-term earnings growth trend and its industry? … I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For E*TRADE Financial, its latest trailing-twelve-month earnings is $587.0M, which compared to the previous year's figure, has moved up by 14.20%.

Simply Wall St -

ETFC Company Info

Description

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services. The company provides its services to customers 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 was founded in 1982 and is headquartered in New York, New York.

Details
Name: E*TRADE Financial Corporation
ETFC
Exchange: NasdaqGS
Founded: 1982
$12,409,644,827
242,660,243
Website: http://etradefinancialcorporation.gcs-web.com
Address: E*TRADE Financial Corporation
11 Times Square,
32nd Floor,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ETFC Common Stock Nasdaq Global Select US USD 16. Aug 1996
DB ETRA Common Stock Deutsche Boerse AG DE EUR 16. Aug 1996
LSE 0IEO Common Stock London Stock Exchange GB USD 16. Aug 1996
BMV ETFC * Common Stock Bolsa Mexicana de Valores MX MXN 16. Aug 1996
Number of employees
Current staff
Staff numbers
4,035
E*TRADE Financial employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:34
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.