NEW YORK (TheStreet) -- Charles Schwab (SCHW - Get Report) shares are up 0.6% to $25.76 on Friday following the release of its Monthly Market Activity Report today.
The savings and loan holding company reported net new assets brought in by new and existing clients during May totaled $10.9 billion.
Total client assets were up 12% from the year ago period to a record $2.35 trillion.
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TheStreet Ratings team rates SCHWAB (CHARLES) CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHWAB (CHARLES) CORP (SCHW) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 13.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SCHWAB (CHARLES) CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SCHWAB (CHARLES) CORP increased its bottom line by earning $0.78 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.78).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 58.3% when compared to the same quarter one year prior, rising from $206.00 million to $326.00 million.
- 39.07% is the gross profit margin for SCHWAB (CHARLES) CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.66% is above that of the industry average.
- Net operating cash flow has significantly increased by 118.75% to $69.00 million when compared to the same quarter last year. In addition, SCHWAB (CHARLES) CORP has also vastly surpassed the industry average cash flow growth rate of 11.10%.
- You can view the full analysis from the report here: SCHW Ratings Report