SCHWAB (CHARLES) CORP (SCHW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCHW - US8085131055 - Common Stock
103.82 USD
+1.06 (+1.03%)
102.4 USD
-1.42 (-1.37%)
We assign a fundamental rating of 4 out of 10 to SCHW. SCHW was compared to 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 growing strongly while it is still valued neutral. This is a good combination!
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.
- Each year in the past 5 years SCHW had a positive operating cash flow.
1.2 Ratios
- SCHW's Return On Assets of 1.67% is on the low side compared to the rest of the industry. SCHW is outperformed by 60.92% of its industry peers.
- With a decent Return On Equity value of 15.73%, SCHW is doing good in the industry, outperforming 77.73% of the companies in the same industry.
- With a Return On Invested Capital value of 2.64%, SCHW perfoms like the industry average, outperforming 40.34% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SCHW is significantly below the industry average of 7.27%.
- 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's Profit Margin of 28.60% is fine compared to the rest of the industry. SCHW outperforms 72.69% 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 71.01% 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 89.08% 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
- Compared to 1 year ago, SCHW has more shares outstanding
- The number of shares outstanding for SCHW has been increased compared to 5 years ago.
- The debt/assets ratio for SCHW has been reduced compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of -0.16, SCHW is doing worse than 78.57% of the companies in the same industry.
- A Debt/Equity ratio of 5.40 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 5.40, SCHW is doing worse than 84.03% 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
- A Current Ratio of 0.33 indicates that SCHW may have some problems paying its short term obligations.
- SCHW has a worse Current ratio (0.33) than 78.99% 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.
- The Quick ratio of SCHW (0.33) is worse than 78.57% 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.
- 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.
- The Revenue has been growing slightly by 5.90% in the past year.
- 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
- The Earnings Per Share is expected to grow by 22.42% on average over the next years. This is a very strong growth
- 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 Y51.27%
EPS Next 2Y32.57%
EPS Next 3Y26.98%
EPS Next 5Y22.42%
Revenue Next Year23%
Revenue Next 2Y16.77%
Revenue Next 3Y14.39%
Revenue Next 5Y13.72%
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 accelerating.
- 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 23.07, the valuation of SCHW can be described as rather expensive.
- Based on the Price/Earnings ratio, SCHW is valued a bit more expensive than the industry average as 63.45% of the companies are valued more cheaply.
- SCHW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 18.18, which indicates a rather expensive current 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. SCHW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SCHW is valued cheaper than 81.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.49 |
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 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
- With a Yearly Dividend Yield of 1.05%, SCHW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.10, SCHW is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.84, SCHW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 2Y32.57%
EPS Next 3Y26.98%
103.82
+1.06 (+1.03%)
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 Change0.09%
Ins Owners6.12%
Ins Owner Change0.97%
Market Cap184.48B
Revenue(TTM)27.16B
Net Income(TTM)7.77B
Analysts80.77
Price Target117.96 (13.62%)
Short Float %0.89%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)5.13%
PT rev (3m)9.56%
EPS NQ rev (1m)3.26%
EPS NQ rev (3m)8.83%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)4.89%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 18.18 | ||
| P/S | 6.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.74 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 14.49 |
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 Year23%
Revenue Next 2Y16.77%
Revenue Next 3Y14.39%
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 23.07 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%.