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E*Trade Financial Corp
ETFC : NASDAQ : Financial
$30.29 | %
Today's Range: 30.09 - 30.36
Avg. Daily Volume: 3,068,400
11/27/15 - 12:59 PM ET

Financial Analysis

E TRADE FINANCIAL CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has increased by 10.20% from the same quarter last year.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)477.0490.0
EBITDA ($mil)236.0227.0
EBIT ($mil)210.0203.0
Net Income ($mil)-153.086.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)1621.02590.0
Total Assets ($mil)41205.045819.0
Total Debt ($mil)1437.06982.0
Equity ($mil)5812.05274.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin49.4846.33
EBITDA Margin49.4746.32
Operating Margin44.0341.43
Sales Turnover0.050.04
Return on Assets0.530.67
Return on Equity3.785.87
Debt Q3 FY15 Q3 FY14
Current Ratio0.00.0
Interest Expense47.077.0
Interest Coverage4.472.64

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)290.43288.81
Div / share0.00.0
Book value / share20.0118.26
Institutional Own % n/a n/a
Avg Daily Volume3280042.03441264.0


BUY. E TRADE FINANCIAL CORP's P/E ratio indicates a significant premium compared to an average of 18.54 for the Capital Markets industry and a significant premium compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 1.50 indicates a discount versus the S&P 500 average of 2.77 and a discount versus the industry average of 2.00. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, E TRADE FINANCIAL CORP seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ETFC 40.69 Peers 18.54   ETFC 8.73 Peers 17.52

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ETFC is trading at a significant premium to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ETFC is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ETFC 19.43 Peers 15.62   ETFC 2.39 Peers 3.09

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ETFC is trading at a significant premium to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ETFC trades at a discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ETFC 1.50 Peers 2.00   ETFC -30.19 Peers 5.01

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ETFC is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ETFC is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ETFC 4.43 Peers 3.35   ETFC -2.19 Peers 1.82

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ETFC is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ETFC significantly trails its peers on the basis of sales growth



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