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

NYSE:SCHW • US8085131055

Current stock price

91.54 USD
-0.1 (-0.11%)
At close:
91.4877 USD
-0.05 (-0.06%)
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.
  • SCHW had a positive operating cash flow in the past year.
  • Each year in the past 5 years SCHW has 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 41.84% of its industry peers.
  • SCHW's Return On Equity of 17.03% is fine compared to the rest of the industry. SCHW outperforms 76.99% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 2.63%, SCHW is doing worse than 63.18% of the companies in the same 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 7.31%.
  • 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

  • Looking at the Profit Margin, with a value of 30.41%, SCHW is in the better half of the industry, outperforming 73.22% of the companies in the same industry.
  • SCHW's Profit Margin has improved in the last couple of years.
  • SCHW has a better Operating Margin (41.41%) than 74.48% of its industry peers.
  • In the last couple of years the Operating Margin of SCHW has remained more or less at the same level.
  • SCHW's Gross Margin of 86.44% is amongst the best of the industry. SCHW outperforms 90.80% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. SCHW Health Analysis

2.1 Basic Checks

  • SCHW has less shares outstanding than it did 1 year ago.
  • SCHW has less shares outstanding than it did 5 years ago.
  • SCHW has a better debt/assets ratio than last year.
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 -0.15. 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 -0.15, SCHW is doing worse than 80.33% of the companies in the same industry.
  • SCHW has a debt to FCF ratio of 32.72. This is a negative value and a sign of low solvency as SCHW would need 32.72 years to pay back of all of its debts.
  • SCHW has a Debt to FCF ratio (32.72) which is in line with its industry peers.
  • A Debt/Equity ratio of 5.80 is on the high side and indicates that SCHW has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 5.80, SCHW is doing worse than 87.03% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 5.8
Debt/FCF 32.72
Altman-Z -0.15
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.
  • Looking at the Current ratio, with a value of 0.39, SCHW is doing worse than 79.08% of the companies in the same industry.
  • SCHW has a Quick 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 has a Quick ratio of 0.39. This is in the lower half of the industry: SCHW underperforms 79.08% of its industry peers.
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.
  • SCHW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.11%.
  • The Revenue has been growing by 17.98% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, SCHW will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
  • The Revenue is expected to grow by 7.97% on average over the next years.
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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Find the best growth stocksShow best growing peers

6

4. SCHW Valuation Analysis

4.1 Price/Earnings Ratio

  • SCHW is valuated rather expensively with a Price/Earnings ratio of 17.37.
  • SCHW's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.64. SCHW is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 13.09, the valuation of SCHW can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. SCHW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.37
Fwd PE 13.09
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

  • SCHW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCHW is cheaper than 82.85% 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 60.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.16
EV/EBITDA 10.55
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.
  • A more expensive valuation may be justified as SCHW's earnings are expected to grow with 17.55% in the coming years.
PEG (NY)0.75
PEG (5Y)1.06
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 1.40%. Purely for dividend investing, there may be better candidates out there.
  • SCHW's Dividend Yield is slightly below the industry average, which is at 6.46.
  • Compared to the average S&P500 Dividend Yield of 1.80, SCHW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.4%

5.2 History

  • The dividend of SCHW is nicely growing with an annual growth rate of 9.93%!
  • SCHW has paid a dividend for at least 10 years, which is 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.
  • 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 (5/1/2026, 8:04:00 PM)

After market: 91.4877 -0.05 (-0.06%)

91.54

-0.1 (-0.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength73.91
Industry Growth95.03
Earnings (Last)04-16
Earnings (Next)07-16
Inst Owners84.75%
Inst Owner Change-0.03%
Ins Owners6.21%
Ins Owner Change19.03%
Market Cap159.11B
Revenue(TTM)28.32B
Net Income(TTM)8.42B
Analysts81.48
Price Target116.22 (26.96%)
Short Float %0.84%
Short Ratio1.3
Dividend
Industry RankSector Rank
Dividend Yield 1.4%
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)-5%
PT rev (3m)-1.47%
EPS NQ rev (1m)2.46%
EPS NQ rev (3m)3.43%
EPS NY rev (1m)0.97%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 17.37
Fwd PE 13.09
P/S 5.75
P/FCF 18.16
P/OCF 17.09
P/B 3.22
P/tB 5.26
EV/EBITDA 10.55
EPS(TTM)5.27
EY5.76%
EPS(NY)6.99
Fwd EY7.64%
FCF(TTM)5.04
FCFY5.51%
OCF(TTM)5.36
OCFY5.85%
SpS15.92
BVpS28.44
TBVpS17.4
PEG (NY)0.75
PEG (5Y)1.06
Graham Number58.0674 (-36.57%)
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 -0.15
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%.