SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
101.68 USD
-0.17 (-0.17%)
Overall SCHW gets a fundamental rating of 4 out of 10. We evaluated SCHW against 238 industry peers in the Capital Markets industry. SCHW has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCHW is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
SCHW had positive earnings in the past year.
In the past year SCHW has reported a negative cash flow from operations.
In the past 5 years SCHW has always been profitable.
In the past 5 years SCHW always reported a positive cash flow from operatings.
1.2 Ratios
SCHW has a Return On Assets of 1.67%. This is comparable to the rest of the industry: SCHW outperforms 42.02% 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 77.73% of the companies in the same industry.
SCHW's Return On Invested Capital of 2.64% is on the low side compared to the rest of the industry. SCHW is outperformed by 61.76% of 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 7.00%.
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 73.95% of its industry peers.
SCHW's Profit Margin has declined in the last couple of years.
SCHW has a better Operating Margin (39.14%) than 71.43% of its industry peers.
SCHW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 84.38%, SCHW belongs to the top of the industry, outperforming 89.08% of the companies in the same industry.
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-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
Compared to 1 year ago, SCHW has more shares outstanding
SCHW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SCHW has been reduced compared to a year ago.
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.
With a Altman-Z score value of -0.16, SCHW is not doing good in the industry: 77.73% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.40 is on the high side and indicates that SCHW has dependencies on debt financing.
SCHW's Debt to Equity ratio of 5.40 is on the low side compared to the rest of the industry. SCHW is outperformed by 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW's Current ratio of 0.33 is on the low side compared to the rest of the industry. SCHW is outperformed by 79.41% of its industry peers.
A Quick Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
SCHW has a Quick ratio of 0.33. This is in the lower half of the industry: SCHW underperforms 78.99% 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 54.11% over the past year.
The Earnings Per Share has been growing slightly by 3.62% on average over the past years.
SCHW shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
Measured over the past years, SCHW shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
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
SCHW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.18% yearly.
SCHW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.72% yearly.
EPS Next Y51.12%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
EPS Next 5Y22.18%
Revenue Next Year22.35%
Revenue Next 2Y16%
Revenue Next 3Y13.86%
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
Based on the Price/Earnings ratio of 22.60, the valuation of SCHW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SCHW indicates a slightly more expensive valuation: SCHW is more expensive than 60.08% of the companies listed in the same industry.
SCHW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.81, which indicates a rather expensive current valuation of SCHW.
SCHW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, SCHW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 17.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 80.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.2 |
4.3 Compensation for Growth
SCHW's 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 27.03% in the coming years.
PEG (NY)0.44
PEG (5Y)6.23
EPS Next 2Y32.55%
EPS Next 3Y27.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, SCHW has a reasonable but not impressive dividend return.
SCHW's Dividend Yield is slightly below the industry average, which is at 6.43.
With a Dividend Yield of 1.11, SCHW pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
30.13% 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.
DP30.13%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
NYSE:SCHW (12/26/2025, 2:28:09 PM)
101.68
-0.17 (-0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-1.99%
Ins Owners6.12%
Ins Owner Change0.91%
Market Cap180.68B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.71
Price TargetN/A
Short Float %0.95%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.25
Dividend Growth(5Y)8.99%
DP30.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)0%
PT rev (3m)4.6%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)6.48%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 17.81 | ||
| P/S | 6.65 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.66 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 14.2 |
EPS(TTM)4.5
EY4.43%
EPS(NY)5.71
Fwd EY5.62%
FCF(TTM)-0.79
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS15.28
BVpS27.79
TBVpS16.92
PEG (NY)0.44
PEG (5Y)6.23
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 Y51.12%
EPS Next 2Y32.55%
EPS Next 3Y27.03%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.03%
Revenue growth 5Y17.15%
Sales Q2Q%26.57%
Revenue Next Year22.35%
Revenue Next 2Y16%
Revenue Next 3Y13.86%
Revenue Next 5Y13.72%
EBIT growth 1Y57.53%
EBIT growth 3Y-1.2%
EBIT growth 5Y10.19%
EBIT Next Year64.75%
EBIT Next 3Y26.6%
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.
What is the valuation status for SCHW stock?
ChartMill assigns a valuation rating of 4 / 10 to SCHWAB (CHARLES) CORP (SCHW). This can be considered as Fairly Valued.
How profitable is SCHWAB (CHARLES) CORP (SCHW) stock?
SCHWAB (CHARLES) CORP (SCHW) has a profitability rating of 5 / 10.
What is the valuation of SCHWAB (CHARLES) CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SCHWAB (CHARLES) CORP (SCHW) is 22.6 and the Price/Book (PB) ratio is 3.66.
Can you provide the dividend sustainability for SCHW stock?
The dividend rating of SCHWAB (CHARLES) CORP (SCHW) is 5 / 10 and the dividend payout ratio is 30.13%.