SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SCHW • US8085131055
103.92 USD
+0.45 (+0.43%)
At close: Jan 30, 2026
103.9 USD
-0.02 (-0.02%)
After Hours: 1/30/2026, 10:16:06 PM
SCHW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. While SCHW is still in line with the averages on profitability rating, there are concerns on its financial health. SCHW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SCHW was profitable.
- SCHW had a negative operating cash flow in the past year.
- Each year in the past 5 years SCHW has been profitable.
- Of the past 5 years SCHW 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SCHW (1.67%) is worse than 61.18% of its industry peers.
- Looking at the Return On Equity, with a value of 15.73%, SCHW is in the better half of the industry, outperforming 77.64% of the companies in the same industry.
- SCHW's Return On Invested Capital of 2.60% is in line compared to the rest of the industry. SCHW outperforms 40.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROIC | 2.6% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SCHW has a Profit Margin of 28.60%. This is in the better half of the industry: SCHW outperforms 72.57% of its industry peers.
- SCHW's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 39.14%, SCHW is doing good in the industry, outperforming 70.89% of the companies in the same industry.
- SCHW's Operating Margin has been stable in the last couple of years.
- The Gross Margin of SCHW (84.38%) is better than 89.03% of its industry peers.
- SCHW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% |
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%
2. Health
2.1 Basic Checks
- There is no outstanding debt for SCHW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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's Altman-Z score of -0.16 is on the low side compared to the rest of the industry. SCHW is outperformed by 78.06% of its industry peers.
- A Debt/Equity ratio of 5.40 is on the high side and indicates that SCHW has dependencies on debt financing.
- With a Debt to Equity ratio value of 5.40, SCHW is not doing good in the industry: 83.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SCHW has a Current Ratio of 0.33. This is a bad value and indicates that SCHW is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of SCHW (0.33) is worse than 78.90% of its industry peers.
- SCHW has a Quick Ratio of 0.33. 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 0.33. This is in the lower half of the industry: SCHW underperforms 78.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 50.15% over the past year.
- 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.
- Looking at the last year, SCHW shows a small growth in Revenue. The Revenue has grown by 6.45% 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)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 17.16% yearly.
- SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.66% yearly.
EPS Next Y19.82%
EPS Next 2Y18.43%
EPS Next 3Y17.16%
EPS Next 5Y17.16%
Revenue Next Year10.27%
Revenue Next 2Y9.78%
Revenue Next 3Y8.98%
Revenue Next 5Y13.66%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of SCHW.
- Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than the industry average as 60.76% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (28.30), we can say SCHW is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.77, SCHW is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHW is on the same level as its industry peers.
- SCHW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 81.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
- SCHW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as SCHW's earnings are expected to grow with 17.16% in the coming years.
PEG (NY)1.07
PEG (5Y)1.3
EPS Next 2Y18.43%
EPS Next 3Y17.16%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.24%, SCHW has a reasonable but not impressive dividend return.
- SCHW's Dividend Yield is slightly below the industry average, which is at 5.98.
- Compared to the average S&P500 Dividend Yield of 1.83, SCHW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- On average, the dividend of SCHW grows each year by 8.99%, 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 recently.
Dividend Growth(5Y)8.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- SCHW pays out 30.13% of its income as dividend. This is a sustainable payout ratio.
- The dividend of SCHW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.13%
EPS Next 2Y18.43%
EPS Next 3Y17.16%
SCHWAB (CHARLES) CORP / SCHW FAQ
What is the fundamental rating for SCHW stock?
ChartMill assigns a fundamental rating of 4 / 10 to SCHW.
Can you provide the valuation status for SCHWAB (CHARLES) CORP?
ChartMill assigns a valuation rating of 3 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Overvalued.
What is the profitability of SCHW stock?
SCHWAB (CHARLES) CORP (SCHW) has a profitability rating of 5 / 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 21.3 and the Price/Book (PB) ratio is 3.74.
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 30.13%.