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

NYSE:SCHW • US8085131055

Current stock price

94.8 USD
-2.47 (-2.54%)
At close:
94.87 USD
+0.07 (+0.07%)
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.
  • In the past 5 years SCHW has always been profitable.
  • SCHW had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of 1.71% is in line compared to the rest of the industry. SCHW outperforms 42.08% of its industry peers.
  • SCHW has a better Return On Equity (17.03%) than 77.50% of its industry peers.
  • SCHW has a Return On Invested Capital (2.63%) which is comparable to the rest of the industry.
  • SCHW had an Average Return On Invested Capital over the past 3 years of 1.90%. This is significantly below the industry average of 7.19%.
  • 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

  • SCHW's Profit Margin of 30.41% is fine compared to the rest of the industry. SCHW outperforms 73.75% of its industry peers.
  • In the last couple of years the Profit Margin of SCHW has grown nicely.
  • SCHW has a Operating Margin of 41.41%. This is in the better half of the industry: SCHW outperforms 75.00% of its industry peers.
  • SCHW's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of SCHW (86.44%) is better than 91.25% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. SCHW Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, SCHW has less shares outstanding
  • SCHW has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SCHW has an improved debt to assets ratio.
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.
  • Looking at the Altman-Z score, with a value of -0.14, SCHW is doing worse than 78.33% of the companies in the same industry.
  • 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's Debt to FCF ratio of 32.72 is in line compared to the rest of the industry. SCHW outperforms 51.25% of its industry peers.
  • 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 -0.14
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

  • A Current Ratio of 0.39 indicates that SCHW may have some problems paying its short term obligations.
  • With a Current ratio value of 0.39, SCHW is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
  • 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 50.15% over the past year.
  • SCHW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.44% yearly.
  • The Revenue has been growing slightly by 6.45% in the past 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)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.
  • SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.06% yearly.
EPS Next Y23.29%
EPS Next 2Y19.71%
EPS Next 3Y17.55%
EPS Next 5Y14.76%
Revenue Next Year10.63%
Revenue Next 2Y9.78%
Revenue Next 3Y8.94%
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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Find the best growth stocksShow best growing peers

5

4. SCHW Valuation Analysis

4.1 Price/Earnings Ratio

  • SCHW is valuated rather expensively with a Price/Earnings ratio of 19.43.
  • Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than 62.08% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.86. SCHW is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 15.76 indicates a correct valuation of SCHW.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of SCHW to the average of the S&P500 Index (37.39), we can say SCHW is valued rather cheaply.
Industry RankSector Rank
PE 19.43
Fwd PE 15.76
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

  • 84.17% of the companies in the same industry are more expensive than SCHW, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHW indicates a somewhat cheap valuation: SCHW is cheaper than 60.42% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.96
EV/EBITDA 11.1
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

  • The 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.
  • SCHW's earnings are expected to grow with 17.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.18
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

  • SCHW has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
  • SCHW's Dividend Yield is slightly below the industry average, which is at 6.65.
  • SCHW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.32%

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 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

  • 27.67% of the earnings are spent on dividend by SCHW. This is a low number and sustainable payout ratio.
  • The dividend of SCHW is growing, but earnings are growing more, so the dividend growth is 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 (4/10/2026, 8:04:00 PM)

After market: 94.87 +0.07 (+0.07%)

94.8

-2.47 (-2.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-21
Earnings (Next)04-16
Inst Owners84.75%
Inst Owner Change-0.06%
Ins Owners6.21%
Ins Owner Change15.67%
Market Cap166.11B
Revenue(TTM)27.68B
Net Income(TTM)8.42B
Analysts81.48
Price Target121.26 (27.91%)
Short Float %0.78%
Short Ratio1.15
Dividend
Industry RankSector Rank
Dividend Yield 1.32%
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)-1.51%
PT rev (3m)6.57%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)5.8%
EPS NY rev (1m)0.97%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)3.81%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE 19.43
Fwd PE 15.76
P/S 6
P/FCF 18.96
P/OCF 17.84
P/B 3.36
P/tB 5.49
EV/EBITDA 11.1
EPS(TTM)4.88
EY5.15%
EPS(NY)6.02
Fwd EY6.35%
FCF(TTM)5
FCFY5.28%
OCF(TTM)5.31
OCFY5.61%
SpS15.79
BVpS28.21
TBVpS17.26
PEG (NY)0.83
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 Y23.29%
EPS Next 2Y19.71%
EPS Next 3Y17.55%
EPS Next 5Y14.76%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y7.45%
Revenue growth 5Y17.98%
Sales Q2Q%18.9%
Revenue Next Year10.63%
Revenue Next 2Y9.78%
Revenue Next 3Y8.94%
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.


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%.