SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
103.88 USD
+1.12 (+1.09%)
We assign a fundamental rating of 4 out of 10 to SCHW. SCHW was compared to 235 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 not overvalued while it is showing excellent growth. This is an interesting combination. SCHW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SCHW had positive earnings in the past year.
- SCHW had a negative operating cash flow in the past year.
- In the past 5 years SCHW has always been profitable.
- SCHW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SCHW (1.67%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 15.73%, SCHW is in the better half of the industry, outperforming 77.87% of the companies in the same industry.
- SCHW has a Return On Invested Capital (2.64%) which is in line with its industry peers.
- SCHW had an Average Return On Invested Capital over the past 3 years of 1.61%. This is significantly below the industry average of 7.16%.
- The 3 year average ROIC (1.61%) for SCHW is below the current ROIC(2.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROIC | 2.64% |
ROA(3y)1.1%
ROA(5y)0.93%
ROE(3y)13.6%
ROE(5y)11.15%
ROIC(3y)1.61%
ROIC(5y)1.38%
1.3 Margins
- SCHW has a Profit Margin of 28.60%. This is in the better half of the industry: SCHW outperforms 72.77% of its industry peers.
- In the last couple of years the Profit Margin of SCHW has declined.
- SCHW has a Operating Margin of 39.14%. This is in the better half of the industry: SCHW outperforms 71.06% of its industry peers.
- SCHW's Operating Margin has declined in the last couple of years.
- The Gross Margin of SCHW (84.38%) is better than 89.79% of its industry peers.
- In the last couple of years the Gross Margin of SCHW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% |
OM growth 3Y-11.01%
OM growth 5Y-5.93%
PM growth 3Y-9.28%
PM growth 5Y-6.77%
GM growth 3Y-8.21%
GM growth 5Y-3.68%
2. Health
2.1 Basic Checks
- The number of shares outstanding for SCHW has been increased compared to 1 year ago.
- SCHW has more shares outstanding than it did 5 years ago.
- SCHW has a better debt/assets ratio than last year.
2.2 Solvency
- SCHW has an Altman-Z score of -0.16. 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 -0.16 is on the low side compared to the rest of the industry. SCHW is outperformed by 75.32% of its industry peers.
- SCHW has a Debt/Equity ratio of 5.40. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 5.40, SCHW is doing worse than 83.40% of the companies in the same industry.
| 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 78.72% of its industry peers.
- A Quick Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.33, SCHW is doing worse than 78.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- SCHW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.11%, which is quite impressive.
- Measured over the past 5 years, SCHW shows a small growth in Earnings Per Share. The EPS has been growing by 3.62% on average per year.
- SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
- The Revenue has been growing by 17.15% on average over the past years. This is quite good.
EPS 1Y (TTM)54.11%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%70.13%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
3.2 Future
- The Earnings Per Share is expected to grow by 22.42% on average over the next years. This is a very strong growth
- Based on estimates for the next years, SCHW will show a quite strong growth in Revenue. The Revenue will grow by 13.72% on average per year.
EPS Next Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.42%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SCHW is valuated rather expensively with a Price/Earnings ratio of 23.08.
- SCHW's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, SCHW is valued at the same level.
- A Price/Forward Earnings ratio of 18.19 indicates a rather expensive valuation of SCHW.
- The rest of the industry has a similar Price/Forward Earnings ratio as SCHW.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaply inside the industry as 82.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.34 |
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.
- A more expensive valuation may be justified as SCHW's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)0.45
PEG (5Y)6.37
EPS Next 2Y32.57%
EPS Next 3Y26.98%
5. Dividend
5.1 Amount
- SCHW has a Yearly Dividend Yield of 5.86%, which is a nice return.
- SCHW's Dividend Yield is a higher than the industry average which is at 6.19.
- SCHW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
5.2 History
- On average, the dividend of SCHW grows each year by 8.99%, which is quite nice.
- SCHW has paid a dividend for at least 10 years, which is a reliable track record.
- SCHW has decreased its dividend 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.
- SCHW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.13%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
NYSE:SCHW (1/16/2026, 10:59:04 AM)
103.88
+1.12 (+1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-16 2025-10-16/bmo
Earnings (Next)01-21 2026-01-21/bmo
Inst Owners84.89%
Inst Owner Change0.02%
Ins Owners6.12%
Ins Owner Change0.97%
Market Cap184.59B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.77
Price Target113.79 (9.54%)
Short Float %1.13%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP30.13%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.3%
Min EPS beat(2)1.61%
Max EPS beat(2)2.99%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)1.21%
Max EPS beat(4)8.23%
EPS beat(8)6
Avg EPS beat(8)2.19%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)11
Avg EPS beat(16)0.91%
Revenue beat(2)2
Avg Revenue beat(2)0.08%
Min Revenue beat(2)0.08%
Max Revenue beat(2)0.09%
Revenue beat(4)3
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)1.96%
Revenue beat(16)7
Avg Revenue beat(16)1.84%
PT rev (1m)1.41%
PT rev (3m)5.68%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)6.77%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 18.19 | ||
| P/S | 6.8 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.74 | ||
| P/tB | 6.14 | ||
| EV/EBITDA | 14.34 |
EPS(TTM)4.5
EY4.33%
EPS(NY)5.71
Fwd EY5.5%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.45
PEG (5Y)6.37
Graham Number53.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 15.73% | ||
| ROCE | 15.28% | ||
| ROIC | 2.64% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 3.28% | ||
| OM | 39.14% | ||
| PM (TTM) | 28.6% | ||
| GM | 84.38% | ||
| FCFM | N/A |
ROA(3y)1.1%
ROA(5y)0.93%
ROE(3y)13.6%
ROE(5y)11.15%
ROIC(3y)1.61%
ROIC(5y)1.38%
ROICexc(3y)1.81%
ROICexc(5y)1.55%
ROICexgc(3y)1.99%
ROICexgc(5y)1.69%
ROCE(3y)12.72%
ROCE(5y)11.16%
ROICexgc growth 3Y13.97%
ROICexgc growth 5Y4.46%
ROICexc growth 3Y12.7%
ROICexc growth 5Y2.85%
OM growth 3Y-11.01%
OM growth 5Y-5.93%
PM growth 3Y-9.28%
PM growth 5Y-6.77%
GM growth 3Y-8.21%
GM growth 5Y-3.68%
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 22.2 | ||
| Cap/Depr | 46.57% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | -0.16 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)57.78%
Cap/Depr(5y)71.3%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.9%
Profit Quality(3y)153.35%
Profit Quality(5y)137.38%
High Growth Momentum
Growth
EPS 1Y (TTM)54.11%
EPS 3Y-0.91%
EPS 5Y3.62%
EPS Q2Q%70.13%
EPS Next Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.42%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.39%
Revenue Next 2Y16.04%
Revenue Next 3Y13.85%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year68.02%
EBIT Next 3Y27.48%
EBIT Next 5Y19.25%
FCF growth 1Y58.86%
FCF growth 3Y19.48%
FCF growth 5Y-24.96%
OCF growth 1Y70.55%
OCF growth 3Y8.03%
OCF growth 5Y-22.13%
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 4 / 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 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 23.08 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 8 / 10 and the dividend payout ratio is 30.13%.