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

NYSE:SCHW • US8085131055

Current stock price

94.28 USD
+0.51 (+0.54%)
Last:

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

  • In the past year SCHW was profitable.
  • SCHW had a positive operating cash flow in the past year.
  • In the past 5 years SCHW has always 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

  • SCHW has a Return On Assets (1.71%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 17.03%, SCHW is in the better half of the industry, outperforming 77.41% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 2.63%, SCHW is in line with its industry, outperforming 40.59% 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 7.24%.
  • 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

  • SCHW's Profit Margin of 30.41% is fine compared to the rest of the industry. SCHW outperforms 73.64% 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 74.90% 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 90.80% of the companies in the same industry.
  • 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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2

2. SCHW Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for SCHW has been reduced compared to 1 year ago.
  • Compared to 5 years ago, SCHW has less shares outstanding
  • 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 -0.15. This is a bad value and indicates that SCHW is not financially healthy and even has some risk of bankruptcy.
  • SCHW has a worse Altman-Z score (-0.15) than 78.24% of its industry peers.
  • 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.
  • The Debt to FCF ratio of SCHW (32.72) 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.
  • With a Debt to Equity ratio value of 5.80, SCHW is not doing good in the industry: 87.45% of the companies in the same industry are doing better.
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.
  • SCHW has a worse Current ratio (0.39) than 79.92% of its industry peers.
  • 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 79.50% 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

  • SCHW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.15%, which is quite impressive.
  • SCHW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.44% yearly.
  • 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

  • The Earnings Per Share is expected to grow by 14.76% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y22.11%
EPS Next 2Y19%
EPS Next 3Y17.8%
EPS Next 5Y14.76%
Revenue Next Year10.63%
Revenue Next 2Y9.78%
Revenue Next 3Y8.94%
Revenue Next 5Y9.06%

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.
  • 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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5

4. SCHW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.32, which indicates a rather expensive current valuation of SCHW.
  • Compared to the rest of the industry, the Price/Earnings ratio of SCHW indicates a slightly more expensive valuation: SCHW is more expensive than 63.18% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of SCHW to the average of the S&P500 Index (26.17), we can say SCHW is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 15.82 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.
  • SCHW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.32
Fwd PE 15.82
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCHW indicates a rather cheap valuation: SCHW is cheaper than 83.68% of the companies listed in the same industry.
  • 62.34% of the companies in the same industry are more expensive than SCHW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.85
EV/EBITDA 10.96
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 17.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)1.18
EPS Next 2Y19%
EPS Next 3Y17.8%

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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 1.39%.
  • SCHW's Dividend Yield is slightly below the industry average, which is at 6.90.
  • Compared to the average S&P500 Dividend Yield of 1.89, SCHW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.39%

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%
EPS Next 3Y17.8%
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 (4/6/2026, 11:26:56 AM)

94.28

+0.51 (+0.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-21
Earnings (Next)04-16
Inst Owners84.77%
Inst Owner Change0%
Ins Owners6.2%
Ins Owner Change15.67%
Market Cap165.20B
Revenue(TTM)27.68B
Net Income(TTM)8.42B
Analysts81.48
Price Target122.34 (29.76%)
Short Float %0.78%
Short Ratio1.15
Dividend
Industry RankSector Rank
Dividend Yield 1.39%
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)-0.63%
PT rev (3m)7.52%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE 19.32
Fwd PE 15.82
P/S 5.97
P/FCF 18.85
P/OCF 17.74
P/B 3.34
P/tB 5.46
EV/EBITDA 10.96
EPS(TTM)4.88
EY5.18%
EPS(NY)5.96
Fwd EY6.32%
FCF(TTM)5
FCFY5.3%
OCF(TTM)5.31
OCFY5.64%
SpS15.79
BVpS28.21
TBVpS17.26
PEG (NY)0.87
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 -0.15
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)50.15%
EPS 3Y7.48%
EPS 5Y16.44%
EPS Q2Q%37.62%
EPS Next Y22.11%
EPS Next 2Y19%
EPS Next 3Y17.8%
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%.