SCHWAB (CHARLES) CORP (SCHW) Fundamental Analysis & Valuation

NYSE:SCHW • US8085131055

Current stock price

94.47 USD
-0.52 (-0.55%)
At close:
93.9215 USD
-0.55 (-0.58%)
Pre-Market:

This SCHW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SCHW Profitability Analysis

1.1 Basic Checks

  • In the past year SCHW was profitable.
  • SCHW had a positive operating cash flow in the past year.
  • In the past 5 years SCHW has always been profitable.
  • In the past 5 years SCHW always reported a positive cash flow from operatings.
SCHW Yearly Net Income VS EBIT VS OCF VS FCFSCHW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • SCHW has a Return On Assets (1.71%) which is comparable to the rest of the industry.
  • With a decent Return On Equity value of 17.03%, SCHW is doing good in the industry, outperforming 77.41% of the companies in the same industry.
  • SCHW has a Return On Invested Capital (2.63%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SCHW is significantly below the industry average of 7.28%.
  • The last Return On Invested Capital (2.63%) for SCHW is above the 3 year average (1.90%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.71%
ROE 17.03%
ROIC 2.63%
ROA(3y)1.27%
ROA(5y)1.16%
ROE(3y)13.23%
ROE(5y)13.47%
ROIC(3y)1.9%
ROIC(5y)1.72%
SCHW Yearly ROA, ROE, ROICSCHW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • SCHW has a better Profit Margin (30.41%) than 73.64% of its industry peers.
  • SCHW's Profit Margin has improved in the last couple of years.
  • SCHW's Operating Margin of 41.41% is fine compared to the rest of the industry. SCHW outperforms 74.90% of its industry peers.
  • SCHW's Operating Margin has been stable in the last couple of years.
  • SCHW's Gross Margin of 86.44% is amongst the best of the industry. SCHW outperforms 90.80% of its industry peers.
  • SCHW's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 41.41%
PM (TTM) 30.41%
GM 86.44%
OM growth 3Y-1.85%
OM growth 5Y1.2%
PM growth 3Y0.74%
PM growth 5Y3.89%
GM growth 3Y-2.44%
GM growth 5Y-2.19%
SCHW Yearly Profit, Operating, Gross MarginsSCHW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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2

2. SCHW Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for SCHW has been reduced compared to 1 year ago.
  • SCHW has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SCHW has been reduced compared to a year ago.
SCHW Yearly Shares OutstandingSCHW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
SCHW Yearly Total Debt VS Total AssetsSCHW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

2.2 Solvency

  • SCHW has an Altman-Z score of -0.14. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
  • SCHW's Altman-Z score of -0.14 is on the low side compared to the rest of the industry. SCHW is outperformed by 78.24% of its industry peers.
  • The Debt to FCF ratio of SCHW is 32.72, which is on the high side as it means it would take SCHW, 32.72 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of SCHW (32.72) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 5.80 is on the high side and indicates that SCHW has dependencies on debt financing.
  • With a Debt to Equity ratio value of 5.80, SCHW is not doing good in the industry: 86.61% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 5.8
Debt/FCF 32.72
Altman-Z -0.14
ROIC/WACCN/A
WACCN/A
SCHW Yearly LT Debt VS Equity VS FCFSCHW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B 50B

2.3 Liquidity

  • SCHW has a Current Ratio of 0.39. This is a bad value and indicates that SCHW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SCHW's Current ratio of 0.39 is on the low side compared to the rest of the industry. SCHW is outperformed by 79.50% of its industry peers.
  • A Quick Ratio of 0.39 indicates that SCHW may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.39, SCHW is doing worse than 79.08% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.39
Quick Ratio 0.39
SCHW Yearly Current Assets VS Current LiabilitesSCHW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SCHW Growth Analysis

3.1 Past

  • SCHW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.15%, which is quite impressive.
  • Measured over the past years, SCHW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.44% on average per year.
  • SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
  • Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 17.98% on average per year.
EPS 1Y (TTM)50.15%
EPS 3Y7.48%
EPS 5Y16.44%
EPS Q2Q%37.62%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y7.45%
Revenue growth 5Y17.98%
Sales Q2Q%18.9%

3.2 Future

  • SCHW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.76% yearly.
  • The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y22.11%
EPS Next 2Y19%
EPS Next 3Y17.8%
EPS Next 5Y14.76%
Revenue Next Year10.51%
Revenue Next 2Y9.64%
Revenue Next 3Y8.92%
Revenue Next 5Y9.06%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SCHW Yearly Revenue VS EstimatesSCHW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
SCHW Yearly EPS VS EstimatesSCHW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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5

4. SCHW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.36, the valuation of SCHW can be described as rather expensive.
  • 63.60% of the companies in the same industry are cheaper than SCHW, based on the Price/Earnings ratio.
  • SCHW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.23.
  • The Price/Forward Earnings ratio is 15.85, which indicates a correct valuation of SCHW.
  • SCHW's Price/Forward Earnings ratio is in line with the industry average.
  • SCHW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.36
Fwd PE 15.85
SCHW Price Earnings VS Forward Price EarningsSCHW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 83.26% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 62.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.89
EV/EBITDA 11.05
SCHW Per share dataSCHW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • SCHW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SCHW has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as SCHW's earnings are expected to grow with 17.80% in the coming years.
PEG (NY)0.88
PEG (5Y)1.18
EPS Next 2Y19%
EPS Next 3Y17.8%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. SCHW Dividend Analysis

5.1 Amount

  • SCHW has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 6.72, SCHW is paying slightly less dividend.
  • Compared to the average S&P500 Dividend Yield of 1.90, SCHW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.36%

5.2 History

  • On average, the dividend of SCHW grows each year by 9.93%, which is quite nice.
  • SCHW has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SCHW has decreased its dividend recently.
Dividend Growth(5Y)9.93%
Div Incr Years0
Div Non Decr Years1
SCHW Yearly Dividends per shareSCHW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 27.67% of the earnings are spent on dividend by SCHW. This is a low number and sustainable payout ratio.
  • SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.67%
EPS Next 2Y19%
EPS Next 3Y17.8%
SCHW Yearly Income VS Free CF VS DividendSCHW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B
SCHW Dividend Payout.SCHW Dividend Payout, showing the Payout Ratio.SCHW Dividend Payout.PayoutRetained Earnings

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SCHW Fundamentals: All Metrics, Ratios and Statistics

SCHWAB (CHARLES) CORP

NYSE:SCHW (3/26/2026, 8:04:00 PM)

Premarket: 93.9215 -0.55 (-0.58%)

94.47

-0.52 (-0.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-21
Earnings (Next)04-15
Inst Owners84.77%
Inst Owner Change-0.99%
Ins Owners6.2%
Ins Owner Change15.14%
Market Cap165.53B
Revenue(TTM)27.68B
Net Income(TTM)8.42B
Analysts81.48
Price Target123.12 (30.33%)
Short Float %0.78%
Short Ratio1.15
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
Yearly Dividend1.3
Dividend Growth(5Y)9.93%
DP27.67%
Div Incr Years0
Div Non Decr Years1
Ex-Date02-13
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-2.25%
Max EPS beat(2)2.99%
EPS beat(4)3
Avg EPS beat(4)0.89%
Min EPS beat(4)-2.25%
Max EPS beat(4)2.99%
EPS beat(8)5
Avg EPS beat(8)1.37%
EPS beat(12)9
Avg EPS beat(12)1.81%
EPS beat(16)11
Avg EPS beat(16)1.04%
Revenue beat(2)1
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-2.48%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)0.82%
Revenue beat(16)7
Avg Revenue beat(16)1.75%
PT rev (1m)1.68%
PT rev (3m)9.73%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 19.36
Fwd PE 15.85
P/S 5.98
P/FCF 18.89
P/OCF 17.78
P/B 3.35
P/tB 5.47
EV/EBITDA 11.05
EPS(TTM)4.88
EY5.17%
EPS(NY)5.96
Fwd EY6.31%
FCF(TTM)5
FCFY5.29%
OCF(TTM)5.31
OCFY5.62%
SpS15.79
BVpS28.21
TBVpS17.26
PEG (NY)0.88
PEG (5Y)1.18
Graham Number55.65
Profitability
Industry RankSector Rank
ROA 1.71%
ROE 17.03%
ROCE 16%
ROIC 2.63%
ROICexc 3.05%
ROICexgc 3.31%
OM 41.41%
PM (TTM) 30.41%
GM 86.44%
FCFM 31.66%
ROA(3y)1.27%
ROA(5y)1.16%
ROE(3y)13.23%
ROE(5y)13.47%
ROIC(3y)1.9%
ROIC(5y)1.72%
ROICexc(3y)2.17%
ROICexc(5y)1.95%
ROICexgc(3y)2.38%
ROICexgc(5y)2.13%
ROCE(3y)12.38%
ROCE(5y)13.01%
ROICexgc growth 3Y17.3%
ROICexgc growth 5Y26.73%
ROICexc growth 3Y17.48%
ROICexc growth 5Y26.5%
OM growth 3Y-1.85%
OM growth 5Y1.2%
PM growth 3Y0.74%
PM growth 5Y3.89%
GM growth 3Y-2.44%
GM growth 5Y-2.19%
F-Score9
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 5.8
Debt/FCF 32.72
Debt/EBITDA 22.36
Cap/Depr 40.23%
Cap/Sales 1.98%
Interest Coverage 2.51
Cash Conversion 72.62%
Profit Quality 104.11%
Current Ratio 0.39
Quick Ratio 0.39
Altman-Z -0.14
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)45.25%
Cap/Depr(5y)58.45%
Cap/Sales(3y)2.37%
Cap/Sales(5y)3.26%
Profit Quality(3y)182.6%
Profit Quality(5y)117.32%
High Growth Momentum
Growth
EPS 1Y (TTM)50.15%
EPS 3Y7.48%
EPS 5Y16.44%
EPS Q2Q%37.62%
EPS Next Y22.11%
EPS Next 2Y19%
EPS Next 3Y17.8%
EPS Next 5Y14.76%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y7.45%
Revenue growth 5Y17.98%
Sales Q2Q%18.9%
Revenue Next Year10.51%
Revenue Next 2Y9.64%
Revenue Next 3Y8.92%
Revenue Next 5Y9.06%
EBIT growth 1Y46.07%
EBIT growth 3Y5.46%
EBIT growth 5Y19.39%
EBIT Next Year32.12%
EBIT Next 3Y16.97%
EBIT Next 5Y13.58%
FCF growth 1Y327.46%
FCF growth 3Y100.57%
FCF growth 5Y7.09%
OCF growth 1Y248.73%
OCF growth 3Y65.42%
OCF growth 5Y6.33%

SCHWAB (CHARLES) CORP / SCHW Fundamental Analysis FAQ

What is the fundamental rating for SCHW stock?

ChartMill assigns a fundamental rating of 5 / 10 to SCHW.


Can you provide the valuation status for SCHWAB (CHARLES) CORP?

ChartMill assigns a valuation rating of 5 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Fairly Valued.


What is the profitability of SCHW stock?

SCHWAB (CHARLES) CORP (SCHW) has a profitability rating of 6 / 10.


What are the PE and PB ratios of SCHWAB (CHARLES) CORP (SCHW) stock?

The Price/Earnings (PE) ratio for SCHWAB (CHARLES) CORP (SCHW) is 19.36 and the Price/Book (PB) ratio is 3.35.


Is the dividend of SCHWAB (CHARLES) CORP sustainable?

The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 5 / 10 and the dividend payout ratio is 27.67%.