Fundamental Analysis for Ameritrade
May 13, 2007
Fundamental Analysis for Ameritrade

by: Jack Leeroy

Chicago, IL. ( 1pennystock.com ) -- May 13, 2007 -- /prbuzz/ --

AMTD is in the Investment Services industry and has positive earnings, the PEG, PE, and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PEG or PE since the company has positive earnings. Therefore AMTD seems inexpensive with a PEG value of 1.2712, below the Investment Services industry median PEG of 1.6, although their PE is 19.915, inline with the industry median of 15.51.

Based on its operating, gross, and net margins, AMTD converts an above median percentage of its revenues to profits compared to other companies in the Investment Services industry. Furthermore, the company is profitable with an operating margin of 35.65%.

AMTD does not pay a dividend.

AMTD saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Investment Services industry was able to improve its earnings result over this same period.

AMTD is doing a good job in comparison to it's peers with a Return on Equity, Revenues Per Employee, and Return on Assets of 33.65%, $636,051.90, and 2.67% respectively. Despite average performance at managing their owner's equity and at generating revenues from employees, the company is among the best at managing their resources compared to other companies in the Investment Services industry.

AMTD has a debt to total capital ratio of 47.85% which is in-line with the Investment Services industry's norm. The company should be able to comfortably repay debt given its Interest Coverage ratio of 10.22.
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