(SCHW) Charles Schwab - NYSE
Sector: Financial Services | Industry: Capital Markets | Exchange: NYSE (USA) | Market Cap: 154.261m USD | Total Return: 3.5% in 12m
Avg Turnover: 1.00B
EPS Trend: 68.7%
Qual. Beats: 1
Rev. Trend: 78.1%
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 0.48 > 1.0 |
| NWC/Revenue: -777.7% < 20% (prev -702.4%; Δ -75.31% < -1%) |
| CFO/TA 0.02 > 3% & CFO 10.3b > Net Income 9.42b |
| Net Debt (-34.3b) to EBITDA (13.5b): -2.54 < 3 |
| Current Ratio: 0.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.75b) vs 12m ago -3.84% < -2% |
| Gross Margin: 87.57% > 18% (prev 78.10%; Δ 9.47% > 0.5%) |
| Asset Turnover: 5.92% > 50% (prev 5.66%; Δ 0.26% > 0%) |
| Interest Coverage Ratio: 3.46 > 6 (EBIT TTM 12.2b / Interest Expense TTM 3.52b) |
| A: -0.45 (Total Current Assets 186b - Total Current Liabilities 407b) / Total Assets 493b |
| B: 0.09 (Retained Earnings 45.9b / Total Assets 493b) |
| C: 0.03 (EBIT TTM 12.2b / Avg Total Assets 478b) |
| D: 0.11 (Book Value of Equity 49.2b / Total Liabilities 444b) |
| Altman-Z'' = -2.34 = D |
| DSRI: 1.26 (Receivables 119b/87.4b, Revenue 28.3b/26.2b) |
| GMI: 0.89 (GM 78.10% / 87.57%) |
| AQI: 1.09 (AQ_t 0.62 / AQ_t-1 0.57) |
| SGI: 1.08 (Revenue 28.3b / 26.2b) |
| TATA: -0.00 (NI 9.42b - CFO 10.3b) / TA 493b) |
| Beneish M = -2.80 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at USD 93.67 with a total of 9,891,691 shares traded.
Over the past week, the price has changed by +3.26%,
over one month by +0.08%,
over three months by -2.51% and
over the past year by +3.52%.
Charles Schwab has received a consensus analysts rating of 4.14. Therefore, it is recommended to buy SCHW.
- StrongBuy: 10
- Buy: 7
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 115.9 | 23.7% |
P/E Trailing = 17.6342
P/E Forward = 14.4928
P/S = 6.2192
P/B = 3.6555
P/EG = 1.0656
Revenue TTM = 28.3b USD
EBIT TTM = 12.2b USD
EBITDA TTM = 13.5b USD
Long Term Debt = 20.6b USD (from longTermDebt, last quarter)
Short Term Debt = 15.0b USD (from shortTermDebt, last quarter)
Debt = 33.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 30.0m
Net Debt = -34.3b USD (calculated: Debt 33.0b - CCE 67.3b)
Enterprise Value = 120b USD (154b + Debt 33.0b - CCE 67.3b)
Interest Coverage Ratio = 3.46 (Ebit TTM 12.2b / Interest Expense TTM 3.52b)
EV/FCF = 11.39x (Enterprise Value 120b / FCF TTM 10.5b)
FCF Yield = 8.78% (FCF TTM 10.5b / Enterprise Value 120b)
FCF Margin = 37.17% (FCF TTM 10.5b / Revenue TTM 28.3b)
Net Margin = 33.26% (Net Income TTM 9.42b / Revenue TTM 28.3b)
Gross Margin = 87.57% ((Revenue TTM 28.3b - Cost of Revenue TTM 3.52b) / Revenue TTM)
Gross Margin QoQ = 88.79% (prev 88.39%)
Tobins Q-Ratio = 0.24 (Enterprise Value 120b / Total Assets 493b)
Interest Expense / Debt = 10.67% (Interest Expense 3.52b / Debt 33.0b)
Taxrate = 22.72% (2.77b / 12.2b)
NOPAT = 9.42b (EBIT 12.2b * (1 - 22.72%))
Current Ratio = 0.34 (Total Current Assets 186b / Total Current Liabilities 553b)
Debt / Equity = 0.67 (Debt 33.0b / totalStockholderEquity, last quarter 49.2b)
Debt / EBITDA = -2.54 (Net Debt -34.3b / EBITDA 13.5b)
Debt / FCF = -3.26 (Net Debt -34.3b / FCF TTM 10.5b)
Total Stockholder Equity = 49.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.97% (Net Income 9.42b / Total Assets 493b)
RoE = 19.08% (Net Income TTM 9.42b / Total Stockholder Equity 49.4b)
RoCE = 17.44% (EBIT 12.2b / Capital Employed (Equity 49.4b + L.T.Debt 20.6b))
RoIC = 1.92% (NOPAT 9.42b / Invested Capital 492b)
WACC = 8.60% (E(154b)/V(187b) * Re(8.67%) + D(33.0b)/V(187b) * Rd(10.67%) * (1-Tc(0.23)))
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -56.83 | Cagr: -1.87%
[DCF] Terminal Value 77.18% ; FCFF base≈9.38b ; Y1≈10.8b ; Y5≈15.8b
[DCF] Fair Price = 151.0 (EV 228b - Net Debt -34.3b = Equity 263b / Shares 1.74b; r=8.60% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 68.68 | EPS CAGR: 16.82% | SUE: 0.88 | # QB: 1
Revenue Correlation: 78.10 | Revenue CAGR: 5.74% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.51 | Chg30d=+2.78% | Revisions=+69% | Analysts=17
EPS next Quarter (2026-09-30): EPS=1.57 | Chg30d=+2.62% | Revisions=+71% | Analysts=18
EPS current Year (2026-12-31): EPS=6.15 | Chg30d=+2.16% | Revisions=+76% | GrowthEPS=+26.4% | GrowthRev=+14.0%
EPS next Year (2027-12-31): EPS=7.22 | Chg30d=+3.31% | Revisions=+76% | GrowthEPS=+17.3% | GrowthRev=+8.2%
[Analyst] Revisions Ratio: +76%