NasdaqGS:ETFC

Stock Analysis Report

Executive Summary

E*TRADE Financial Corporation, a financial services company, operates in the online brokerage industry.

Snowflake

Fundamentals

Good value with questionable track record.


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


Market Performance


7 Day Return

4.8%

ETFC

1.4%

US Capital Markets

0.4%

US Market


1 Year Return

-12.5%

ETFC

8.3%

US Capital Markets

11.4%

US Market

Return vs Industry: ETFC underperformed the US Capital Markets industry which returned 5.3% over the past year.

Return vs Market: ETFC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

ETFCIndustryMarket
7 Day4.8%1.4%0.4%
30 Day-8.8%-1.7%0.3%
90 Day-16.7%-2.3%-1.2%
1 Year-11.4%-12.5%10.7%8.3%13.9%11.4%
3 Year45.9%44.1%53.5%44.9%47.2%37.6%
5 Year89.9%87.6%73.8%58.0%62.4%44.6%

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?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETFC ($40.89) is trading below our estimate of fair value ($61.87)

Significantly Below Fair Value: ETFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ETFC is good value based on its PE Ratio (9.9x) compared to the Capital Markets industry average (32x).

PE vs Market: ETFC is good value based on its PE Ratio (9.9x) compared to the US market (17.8x).


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 (1.6x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is E*TRADE Financial forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-7.6%

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 (-7.6% per year).

Earnings vs Market: ETFC's earnings are forecast to decline over the next 3 years (-7.6% 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 (-3.5% per year).

High Growth Revenue: ETFC's revenue is forecast to decline over the next 3 years (-3.5% 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 (11.9%).


Next Steps

Past Performance

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

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ETFC's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: ETFC's earnings growth over the past year (15.8%) is below its 5-year average (29.5% per year).

Earnings vs Industry: ETFC earnings growth over the past year (15.8%) underperformed the Capital Markets industry 29.3%.


Return on Equity

High ROE: ETFC's Return on Equity (16%) is considered low.


Return on Assets

ROA vs Industry: ETFC has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ETFC's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

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


Balance Sheet

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 12.4x 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.


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Upcoming Dividend Payment

Purchase E*TRADE Financial before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ETFC's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ETFC's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (10.1%), 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 thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Mike Pizzi (44yo)

0.2yrs

Tenure

US$4,723,417

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ETFC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ETFC's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$101,73401 Feb 19
Robert Chersi
EntityIndividual
Shares2,200
Max PriceUS$46.24
BuyUS$226,79113 Dec 18
James Healy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$45.36
BuyUS$299,58808 Nov 18
Joshua Weinreich
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,725
Max PriceUS$52.33
BuyUS$100,07205 Nov 18
Brent Simonich
EntityIndividual
Shares1,943
Max PriceUS$51.50
BuyUS$516,73505 Nov 18
Michael Pizzi
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$51.67
BuyUS$512,65005 Nov 18
Rodger Lawson
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$51.27

Ownership Breakdown


Management Team

  • Karl Roessner (51yo)

    • Tenure: 0.2yrs
    • Compensation: US$6.25m
  • Michael Curcio (57yo)

    Executive Vice President of Institutional

    • Tenure: 14.8yrs
    • Compensation: US$4.13m
  • Paul Brandow

    Executive VP & Chief Risk Officer

    • Tenure: 1.8yrs
  • Mike Pizzi (44yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$4.72m
  • Brett Goodman

    Chief Communications Officer

    • Tenure: 11.3yrs
  • Lori Sher

    Executive VP

    • Tenure: 3.1yrs
  • Andrea Zaretsky

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Chad Turner (48yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: US$4.89m
  • Mayank Gupta

    Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Matthew Minetola

    Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • Donna Weaver (75yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$287.26k
  • James Lam (58yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$281.35k
  • Kevin Kabat (62yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$356.45k
  • Rich Carbone (71yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$273.55k
  • Rodger Lawson (72yo)

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$5.02m
  • Jim Healy (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$274.15k
  • Josh Weinreich (59yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$115.69k
  • Becky Saeger (63yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$285.27k
  • Shelley Leibowitz (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$257.52k
  • Mike Pizzi (44yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$4.72m

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$9.192b
  • Shares outstanding: 224.81m
  • Website: https://us.etrade.com

Number of Employees


Location

  • E*TRADE Financial Corporation
  • 11 Times Square
  • 32nd Floor
  • New York
  • New York
  • 10036
  • 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

Biography

E*TRADE Financial Corporation, a financial services company, operates in the online brokerage industry. It delivers solutions for traders, investors, advisors, and stock plan administrators and participant ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:34
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.