(SCHW) Charles Schwab - Overview
Sector: Financial Services | Industry: Capital Markets | Exchange: NYSE (USA) | Market Cap: 155.548m USD | Total Return: 4.9% in 12m
Industry Rotation: -17.5
Avg Turnover: 852M
EPS Trend: 46.3%
Qual. Beats: 0
Rev. Trend: 61.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Confidence
The Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm operating through two primary segments: Investor Services and Advisor Services. The company integrates securities brokerage, banking, and asset management into a unified platform serving individual investors and independent investment advisors. Headquartered in Westlake, Texas, the firm provides a comprehensive suite of products including equity trading, margin lending, mutual fund clearing, and residential mortgage services.
Operating within the Investment Banking & Brokerage sub-industry, Schwab utilizes a low-cost leadership model that prioritizes scale and asset gathering to drive interest income and management fees. The sector is currently characterized by a shift toward commission-free trading, forcing major providers to rely more heavily on net interest margin from uninvested client cash. For a deeper analysis of these revenue drivers, ValueRay offers additional context.
The company maintains a physical presence through a national branch network while offering digital trading platforms and recordkeeping services for corporate equity compensation plans. Its business model is supported by a significant custody business, which provides back-office infrastructure and administrative services to third-party registered investment advisors (RIAs).
- Net interest margin fluctuations driven by Federal Reserve monetary policy shifts
- Client cash sorting trends impact low-cost deposit levels and profitability
- Asset management fee growth tied to total client assets under management
- Regulatory capital requirements influence stock buyback capacity and dividend yield
- Operating expense management balances technology investment with margin preservation
| Net Income: 9.42b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -0.14 > 1.0 |
| NWC/Revenue: 604.6% < 20% (prev -702.4%; Δ 1.31k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 10.29b > Net Income 9.42b |
| Net Debt (-34.35b) to EBITDA (14.06b): -2.44 < 3 |
| Current Ratio: 12.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.75b) vs 12m ago -3.84% < -2% |
| Gross Margin: 85.85% > 18% (prev 0.78%; Δ 8.51k% > 0.5%) |
| Asset Turnover: 5.92% > 50% (prev 5.66%; Δ 0.26% > 0%) |
| Interest Coverage Ratio: 3.61 > 6 (EBITDA TTM 14.06b / Interest Expense TTM 3.52b) |
| A: 0.35 (Total Current Assets 186.25b - Total Current Liabilities 15.00b) / Total Assets 493.32b |
| B: 0.09 (Retained Earnings 45.91b / Total Assets 493.32b) |
| C: 0.03 (EBIT TTM 12.71b / Avg Total Assets 478.11b) |
| D: 0.08 (Book Value of Equity 35.18b / Total Liabilities 444.08b) |
| Altman-Z'' Score: 2.84 = A |
| DSRI: 1.26 (Receivables 118.92b/87.39b, Revenue 28.32b/26.20b) |
| GMI: 0.91 (GM 85.85% / 78.10%) |
| AQI: 1.09 (AQ_t 0.62 / AQ_t-1 0.57) |
| SGI: 1.08 (Revenue 28.32b / 26.20b) |
| TATA: -0.00 (NI 9.42b - CFO 10.29b) / TA 493.32b) |
| Beneish M-Score: -2.79 (Cap -4..+1) = A |
Over the past week, the price has changed by +5.19%, over one month by -0.46%, over three months by -2.79% and over the past year by +4.85%.
- StrongBuy: 10
- Buy: 7
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 115.2 | 24.7% |
P/E Forward = 14.7929
P/S = 6.2711
P/B = 3.1303
P/EG = 1.1292
Revenue TTM = 28.32b USD
EBIT TTM = 12.71b USD
EBITDA TTM = 14.06b USD
Long Term Debt = 22.15b USD (from longTermDebt, last fiscal year)
Short Term Debt = 15.00b USD (from shortTermDebt, last quarter)
Debt = 32.97b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -34.35b USD (recalculated: Debt 32.97b - CCE 67.33b)
Enterprise Value = 121.19b USD (155.55b + Debt 32.97b - CCE 67.33b)
Interest Coverage Ratio = 3.61 (Ebit TTM 12.71b / Interest Expense TTM 3.52b)
EV/FCF = 12.46x (Enterprise Value 121.19b / FCF TTM 9.72b)
FCF Yield = 8.02% (FCF TTM 9.72b / Enterprise Value 121.19b)
FCF Margin = 34.33% (FCF TTM 9.72b / Revenue TTM 28.32b)
Net Margin = 33.26% (Net Income TTM 9.42b / Revenue TTM 28.32b)
Gross Margin = 85.85% ((Revenue TTM 28.32b - Cost of Revenue TTM 4.01b) / Revenue TTM)
Gross Margin QoQ = 88.79% (prev 81.58%)
Tobins Q-Ratio = 0.25 (Enterprise Value 121.19b / Total Assets 493.32b)
Interest Expense / Debt = 2.48% (Interest Expense 818.0m / Debt 32.97b)
Taxrate = 22.24% (709.0m / 3.19b)
NOPAT = 9.89b (EBIT 12.71b * (1 - 22.24%))
Current Ratio = 12.41 (Total Current Assets 186.25b / Total Current Liabilities 15.00b)
Debt / Equity = 0.67 (Debt 32.97b / totalStockholderEquity, last quarter 49.23b)
Debt / EBITDA = -2.44 (Net Debt -34.35b / EBITDA 14.06b)
Debt / FCF = -3.53 (Net Debt -34.35b / FCF TTM 9.72b)
Total Stockholder Equity = 49.37b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.97% (Net Income 9.42b / Total Assets 493.32b)
RoE = 19.08% (Net Income TTM 9.42b / Total Stockholder Equity 49.37b)
RoCE = 17.78% (EBIT 12.71b / Capital Employed (Equity 49.37b + L.T.Debt 22.15b))
RoIC = 13.24% (NOPAT 9.89b / Invested Capital 74.69b)
WACC = 7.82% (E(155.55b)/V(188.52b) * Re(9.07%) + D(32.97b)/V(188.52b) * Rd(2.48%) * (1-Tc(0.22)))
Discount Rate = 9.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -56.83 | Cagr: -1.87%
[DCF] Terminal Value 79.04% ; FCFF base≈9.75b ; Y1≈9.68b ; Y5≈10.12b
[DCF] Fair Price = 127.7 (EV 187.75b - Net Debt -34.35b = Equity 222.10b / Shares 1.74b; r=7.82% [WACC]; 5y FCF grow -1.45% → 3.0% )
EPS Correlation: 46.29 | EPS CAGR: 10.90% | SUE: 0.92 | # QB: 0
Revenue Correlation: 61.32 | Revenue CAGR: 9.13% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.47 | Chg30d=+0.89% | Revisions=+33% | Analysts=18
EPS next Quarter (2026-09-30): EPS=1.53 | Chg30d=+1.96% | Revisions=+37% | Analysts=17
EPS current Year (2026-12-31): EPS=6.02 | Chg30d=+2.73% | Revisions=+81% | GrowthEPS=+23.7% | GrowthRev=+11.6%
EPS next Year (2027-12-31): EPS=6.99 | Chg30d=+2.92% | Revisions=+64% | GrowthEPS=+16.0% | GrowthRev=+8.9%
[Analyst] Revisions Ratio: +81%