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

NYSE:SCHW • US8085131055

Current stock price

88.5 USD
-0.42 (-0.47%)
At close:
88.52 USD
+0.02 (+0.02%)
After Hours:

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

  • SCHW had positive earnings in the past year.
  • In the past year SCHW had a positive cash flow from operations.
  • Each year in the past 5 years SCHW has been profitable.
  • Each year in the past 5 years SCHW had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 1.71%, SCHW is in line with its industry, outperforming 42.08% of the companies in the same industry.
  • SCHW has a Return On Equity of 17.03%. This is in the better half of the industry: SCHW outperforms 77.08% of its industry peers.
  • SCHW has a worse Return On Invested Capital (2.63%) than 60.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.30%.
  • The 3 year average ROIC (1.90%) for SCHW is below the current ROIC(2.63%), indicating increased profibility in the last year.
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

  • The Profit Margin of SCHW (30.41%) is better than 73.75% of its industry peers.
  • SCHW's Profit Margin has improved in the last couple of years.
  • SCHW has a Operating Margin of 41.41%. This is in the better half of the industry: SCHW outperforms 74.58% of its industry peers.
  • SCHW's Operating Margin has been stable in the last couple of years.
  • With an excellent Gross Margin value of 86.44%, SCHW belongs to the best of the industry, outperforming 90.83% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SCHW has declined.
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.
  • The number of shares outstanding for SCHW has been reduced compared to 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

  • Based on the Altman-Z score of -0.16, we must say that SCHW is in the distress zone and has some risk of bankruptcy.
  • SCHW has a worse Altman-Z score (-0.16) than 80.42% 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.
  • SCHW has a Debt to FCF ratio (32.72) which 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.
  • SCHW has a Debt to Equity ratio of 5.80. This is amonst the worse of the industry: SCHW underperforms 87.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.8
Debt/FCF 32.72
Altman-Z -0.16
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

  • A Current Ratio of 0.39 indicates that SCHW may have some problems paying its short term obligations.
  • SCHW has a worse Current ratio (0.39) than 80.00% 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 79.58% 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

  • The Earnings Per Share has grown by an impressive 48.45% over the past year.
  • The Earnings Per Share has been growing by 16.44% on average over the past years. This is quite good.
  • Looking at the last year, SCHW shows a quite strong growth in Revenue. The Revenue has grown by 8.11% in the last year.
  • SCHW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.98% yearly.
EPS 1Y (TTM)48.45%
EPS 3Y7.48%
EPS 5Y16.44%
EPS Q2Q%37.5%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y7.45%
Revenue growth 5Y17.98%
Sales Q2Q%15.77%

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 13.53% yearly.
  • SCHW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.97% yearly.
EPS Next Y23.29%
EPS Next 2Y19.71%
EPS Next 3Y17.55%
EPS Next 5Y13.53%
Revenue Next Year11.51%
Revenue Next 2Y10.45%
Revenue Next 3Y9.59%
Revenue Next 5Y7.97%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
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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6

4. SCHW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.79, which indicates a correct valuation of SCHW.
  • SCHW's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, SCHW is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 12.66, the valuation of SCHW can be described as correct.
  • SCHW's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (22.24), we can say SCHW is valued slightly cheaper.
Industry RankSector Rank
PE 16.79
Fwd PE 12.66
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 cheaper than 87.50% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.55
EV/EBITDA 10.2
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.
  • The decent profitability rating of SCHW may justify a higher PE ratio.
  • SCHW's earnings are expected to grow with 17.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.02
EPS Next 2Y19.71%
EPS Next 3Y17.55%

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

5

5. SCHW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.44%, SCHW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 6.46, SCHW is paying slightly less dividend.
  • Compared to the average S&P500 Dividend Yield of 1.81, SCHW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.44%

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.
  • The dividend of SCHW decreased in the last 3 years.
Dividend Growth(5Y)9.93%
Div Incr Years1
Div Non Decr Years2
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

  • SCHW pays out 27.67% of its income as dividend. This is a sustainable payout ratio.
  • SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.67%
EPS Next 2Y19.71%
EPS Next 3Y17.55%
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 (4/24/2026, 8:07:45 PM)

After market: 88.52 +0.02 (+0.02%)

88.5

-0.42 (-0.47%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)04-16
Earnings (Next)07-16
Inst Owners84.75%
Inst Owner Change0.14%
Ins Owners6.21%
Ins Owner Change18.47%
Market Cap153.82B
Revenue(TTM)28.32B
Net Income(TTM)8.42B
Analysts81.48
Price Target119.74 (35.3%)
Short Float %0.8%
Short Ratio1.19
Dividend
Industry RankSector Rank
Dividend Yield 1.44%
Yearly Dividend1.3
Dividend Growth(5Y)9.93%
DP27.67%
Div Incr Years1
Div Non Decr Years2
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)-2.75%
PT rev (3m)1.51%
EPS NQ rev (1m)3.61%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)0.97%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 16.79
Fwd PE 12.66
P/S 5.56
P/FCF 17.55
P/OCF 16.52
P/B 3.11
P/tB 5.09
EV/EBITDA 10.2
EPS(TTM)5.27
EY5.95%
EPS(NY)6.99
Fwd EY7.9%
FCF(TTM)5.04
FCFY5.7%
OCF(TTM)5.36
OCFY6.05%
SpS15.92
BVpS28.44
TBVpS17.4
PEG (NY)0.72
PEG (5Y)1.02
Graham Number58.0674 (-34.39%)
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 -0.16
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)48.45%
EPS 3Y7.48%
EPS 5Y16.44%
EPS Q2Q%37.5%
EPS Next Y23.29%
EPS Next 2Y19.71%
EPS Next 3Y17.55%
EPS Next 5Y13.53%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y7.45%
Revenue growth 5Y17.98%
Sales Q2Q%15.77%
Revenue Next Year11.51%
Revenue Next 2Y10.45%
Revenue Next 3Y9.59%
Revenue Next 5Y7.97%
EBIT growth 1Y46.07%
EBIT growth 3Y5.46%
EBIT growth 5Y19.39%
EBIT Next Year32.12%
EBIT Next 3Y16.97%
EBIT Next 5Y12.18%
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 6 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Fairly Valued.


Can you provide the profitability details for SCHWAB (CHARLES) CORP?

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


How financially healthy is SCHWAB (CHARLES) CORP?

The financial health rating of SCHWAB (CHARLES) CORP (SCHW) is 2 / 10.


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%.