NasdaqGS:ETFC

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

ETFC

-1.0%

US Capital Markets

-0.8%

US Market


1 Year Return

35.3%

ETFC

9.1%

US Capital Markets

18.0%

US Market

Return vs Industry: ETFC exceeded the US Capital Markets industry which returned 11.7% over the past year.

Return vs Market: ETFC exceeded the US Market which returned 18.1% over the past year.


Shareholder returns

ETFCIndustryMarket
7 Day1.3%-1.0%-0.8%
30 Day-10.6%7.0%6.8%
90 Day-0.04%3.5%8.9%
1 Year37.0%35.3%11.8%9.1%20.7%18.0%
3 Year14.8%12.1%22.1%12.8%41.5%32.1%
5 Year93.0%88.4%70.6%49.3%84.6%63.8%

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

Valuation

Is E*TRADE Financial undervalued compared to its fair value and its price relative to the market?

14.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ETFC ($49.26) is trading above our estimate of fair value ($38.06)

Significantly Below Fair Value: ETFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ETFC is good value based on its PE Ratio (14.2x) compared to the US Capital Markets industry average (22.2x).

PE vs Market: ETFC is good value based on its PE Ratio (14.2x) compared to the US market (18.1x).


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 (1.8x) compared to the US Capital Markets industry average (4.2x).


Next Steps

Future Growth

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

-2.0%

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 (-2% per year).

Earnings vs Market: ETFC's earnings are forecast to decline over the next 3 years (-2% 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 (-0.9% per year).

High Growth Revenue: ETFC's revenue is forecast to decline over the next 3 years (-0.9% 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 (8%).


Next Steps

Past Performance

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

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETFC has high quality earnings.

Growing Profit Margin: ETFC's current net profit margins (27%) are lower than last year (34.4%).


Past Earnings Growth Analysis

Earnings Trend: ETFC's earnings have grown significantly by 22.8% 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 (-23.2%) over the past year, making it difficult to compare to the Capital Markets industry average (7.2%).


Return on Equity

High ROE: ETFC's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is E*TRADE Financial's financial position?


Financial Position Analysis

Short Term Liabilities: ETFC's short term assets ($18.5B) exceed its short term liabilities ($17.2B).

Long Term Liabilities: ETFC's short term assets ($18.5B) do not cover its long term liabilities ($46.4B).


Debt to Equity History and Analysis

Debt Level: ETFC's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: ETFC's debt to equity ratio has reduced from 137.2% to 37.9% over the past 5 years.

Debt Coverage: ETFC's debt is well covered by operating cash flow (246.1%).

Interest Coverage: Insufficient data to determine if ETFC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETFC's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: ETFC's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.86%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ETFC has been paying a dividend for less than 10 years.

Growing Dividend: ETFC has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), ETFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETFC's dividends in 3 years are forecast to be well covered by earnings (22.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mike Pizzi (45 yo)

1.17yrs

Tenure

US$6,012,990

Compensation

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 ($USD6.01M) is below average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Pizzi
CEO & Director1.17yrsUS$6.01m0.085%
$ 9.2m
Chad Turner
Executive VP & CFO1.83yrsUS$2.06m0.025%
$ 2.7m
Lori Sher
Executive VP4.08yrsUS$2.44m0.028%
$ 3.1m
Michael Curcio
Executive Vice President of Institutional15.75yrsUS$3.75m0.034%
$ 3.6m
Alice Milligan
Executive VP & Chief Customer Officer1.42yrsUS$3.55m0.0029%
$ 307.7k
Dirk Wyckoff
Corporate Controller & Principal Accounting Officer0.75yrno data0.0071%
$ 768.8k
Matthew Minetola
Chief Information Officer1.25yrsno data0.00043%
$ 46.4k
Brett Goodman
Chief Business Development Officer12.25yrsno datano data
Andrea Zaretsky
Chief Marketing Officer1.75yrsno datano data
Mayank Gupta
Chief Human Resources Officer1.75yrsno datano data
Brent Simonich
Executive VP & Chief Risk Officerno datano data0.022%
$ 2.3m
Michael Kaiser
Chief Of Staffno datano datano data

1.8yrs

Average Tenure

48.5yo

Average Age

Experienced Management: ETFC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Pizzi
CEO & Director1.17yrsUS$6.01m0.085%
$ 9.2m
Donna Weaver
Independent Director17.5yrsUS$295.28k0.023%
$ 2.5m
James Lam
Independent Director7.92yrsUS$276.35k0.014%
$ 1.5m
Jaime Ellertson
Independent Director1.42yrsUS$178.90k0.0014%
$ 156.6k
Kevin Kabat
Lead Independent Director4.08yrsUS$307.92k0.0091%
$ 978.2k
Richard Carbone
Independent Director7.17yrsUS$293.21k0.0026%
$ 278.6k
Rodger Lawson
Chairman of the Board7.42yrsUS$544.64k0.042%
$ 4.5m
James Healy
Independent Director5.75yrsUS$277.14k0.013%
$ 1.4m
Joshua Weinreich
Independent Director2.17yrsUS$251.51k0.0060%
$ 646.8k
Rebecca Saeger
Independent Director8.67yrsUS$286.35k0.016%
$ 1.7m
Robert Chersi
Independent Director1.75yrsUS$267.87k0.0041%
$ 447.0k
Shelley Leibowitz
Independent Director5.83yrsUS$257.51k0.0059%
$ 637.0k

5.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ETFC's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ETFC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

E*TRADE Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: E*TRADE Financial Corporation
  • Ticker: ETFC
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$10.797b
  • Shares outstanding: 219.19m
  • Website: https://about.etrade.com

Number of Employees


Location

  • E*TRADE Financial Corporation
  • Ballston Tower
  • 671 North Glebe Road
  • Arlington
  • Virginia
  • 22203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETFCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1996
ETRADB (Deutsche Boerse AG)YesCommon StockDEEURAug 1996
ETFC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1996
0IEOLSE (London Stock Exchange)YesCommon StockGBUSDAug 1996
A185D9DB (Deutsche Boerse AG)ALT TIER I PERPDEUSDAug 2016
E1TF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

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 administrato ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/02 23:32
End of Day Share Price2020/10/01 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.