SCHW Stock Analysis: Charles Schwab | NYSE
Capital Markets | NYSE, USA | Market Cap: 158.476m USD | 12M Return: -3% | US8085131055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 785M
EPS Trend: 96.1%
Qual. Beats: 3
Rev. Trend: 97.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Charles Schwab Corporation is a U.S. savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services across two segments: Investor Services (retail and individual clients) and Advisor Services (registered investment advisors and independent advisors). Its product offering spans retail and institutional brokerage (equities, fixed income, options, futures, forex, margin lending), mutual funds and ETFs (including the Mutual Fund OneSource and Mutual Fund Marketplace platforms), managed portfolios and separately managed accounts, banking products (checking, savings, CDs, mortgages, HELOCs), and trust and custody services. Distribution combines digital and software-based trading platforms, research and market-data services, branch offices, and multichannel support, with additional services in equity compensation recordkeeping, mutual fund clearing for broker-dealers, and retirement plan administration. The company was founded in 1971, is headquartered in Westlake, Texas, and has been listed on the NYSE since 1987 under the ticker SCHW. As a large-cap stock in the Financials sector (GICS sub-industry: Investment Banking & Brokerage), SCHW operates a hybrid business model that generates revenue from net interest income on client cash and bank deposits, asset-based fees on managed assets, and trading and transaction fees.
- Net interest margin pressured as legacy securities yields lag market rates
- Federal Reserve rate path drives deposit and lending revenue
- Money market fund competition weighs on bank deposit balances
| Net Income: 10.6b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -2.98 > 1.0 |
| NWC/Revenue: 666.4% < 20% (prev -711.3%; Δ 1.38k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 4.33b > Net Income 10.6b |
| Net Debt (-28.5b) to EBITDA (15.2b): -1.88 < 3 |
| Current Ratio: 13.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.73b) vs 12m ago -4.31% < -2% |
| Gross Margin: 86.86% > 18% (prev 84.37%; Δ 2.49% > 0.5%) |
| Asset Turnover: 6.32% > 50% (prev 5.84%; Δ 0.48% > 0%) |
| Interest Coverage Ratio: 4.23 > 6 (EBIT TTM 13.8b / Interest Expense TTM 3.26b) |
| A: 0.40 (Total Current Assets 224b - Total Current Liabilities 16.2b) / Total Assets 521b |
| B: 0.08 (Retained Earnings 44.1b / Total Assets 521b) |
| C: 0.03 (EBIT TTM 13.8b / Avg Total Assets 493b) |
| D: 0.11 (Book Value of Equity 51.4b / Total Liabilities 469b) |
| Altman-Z'' = 3.19 = A |
| DSRI: 1.37 (Receivables 155b/98.5b, Revenue 31.2b/27.2b) |
| GMI: 0.97 (GM 84.37% / 86.86%) |
| AQI: 0.97 (AQ_t 0.56 / AQ_t-1 0.58) |
| SGI: 1.15 (Revenue 31.2b / 27.2b) |
| TATA: 0.01 (NI 10.6b - CFO 4.33b) / TA 521b) |
| Beneish M = -2.66 (Cap -4..+1) = A |
As of October 25, 2026, the stock is trading at USD 90.58 with a total of 6,998,433 shares traded. Over the past week, the price has changed by -1.50%, over one month by -8.96%, over three months by -10.60% and over the past year by -3.03%.
Current recommended Stop Loss: 87.80 (which is 3.1% or 1.3 ATR below the current price).
Charles Schwab has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy SCHW.
- StrongBuy: 11
- Buy: 7
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 117.6 | 29.8% |
P/E Trailing = 15.665
P/E Forward = 12.8866
P/S = 5.8563
P/B = 3.9165
P/EG = 0.8418
Revenue TTM = 31.2b USD
EBIT TTM = 13.8b USD
EBITDA TTM = 15.2b USD
Long Term Debt = 22.2b USD (from longTermDebt, last fiscal year)
Short Term Debt = 16.2b USD (from shortTermDebt, last quarter)
Debt = 40.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 23.0m
Net Debt = -28.5b USD (calculated: Debt 40.0b - CCE 68.5b)
Enterprise Value = 130b USD (158b + Debt 40.0b - CCE 68.5b)
Interest Coverage Ratio = 4.23 (Ebit TTM 13.8b / Interest Expense TTM 3.26b)
EV/FCF = 35.09x (Enterprise Value 130b / FCF TTM 3.71b)
FCF Yield = 2.85% (FCF TTM 3.71b / Enterprise Value 130b)
FCF Margin = 11.89% (FCF TTM 3.71b / Revenue TTM 31.2b)
Net Margin = 34.17% (Net Income TTM 10.6b / Revenue TTM 31.2b)
Gross Margin = 86.86% ((Revenue TTM 31.2b - Cost of Revenue TTM 4.09b) / Revenue TTM)
Gross Margin QoQ = 87.79% (prev 83.02%)
Tobins Q-Ratio = 0.25 (Enterprise Value 130b / Total Assets 521b)
Interest Expense / Debt = 8.15% (Interest Expense 3.26b / Debt 40.0b)
Taxrate = 22.95% (3.17b / 13.8b)
NOPAT = 10.6b (EBIT 13.8b * (1 - 22.95%))
Current Ratio = 13.81 (Total Current Assets 224b / Total Current Liabilities 16.2b)
Debt / Equity = 0.78 (Debt 40.0b / totalStockholderEquity, last quarter 51.4b)
Debt / EBITDA = -1.88 (Net Debt -28.5b / EBITDA 15.2b)
Debt / FCF = -7.69 (Net Debt -28.5b / FCF TTM 3.71b)
Total Stockholder Equity = 50.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.16% (Net Income 10.6b / Total Assets 521b)
RoE = 21.29% (Net Income TTM 10.6b / Total Stockholder Equity 50.0b)
RoCE = 19.15% (EBIT 13.8b / Capital Employed (Equity 50.0b + L.T.Debt 22.2b))
RoIC = 2.05% (NOPAT 10.6b / Invested Capital 519b)
WACC = 7.58% (E(158b)/V(198b) * Re(7.91%) + D(40.0b)/V(198b) * Rd(8.15%) * (1-Tc(0.23)))
Discount Rate = 7.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.38 | Cagr: -2.49%
[DCF] Terminal Value 73.10% ; FCFF base≈9.10b ; Y1≈7.98b ; Y5≈6.44b
[DCF] Fair Price = 76.28 (EV 103b - Net Debt -28.5b = Equity 132b / Shares 1.73b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 96.09 | EPS CAGR: 34.55% | SUE: 0.87 | # QB: 3
Revenue Correlation: 97.29 | Revenue CAGR: 10.72% | SUE: 0.50 | # QB: 0
EPS current Quarter (2027-03-31): EPS=1.78 | Chg30d=-1.65% | Revisions=+8% | Analysts=16
EPS current Year (2026-12-31): EPS=6.44 | Chg30d=-0.72% | Revisions=-21% | GrowthEPS=+32.3% | GrowthRev=+17.5%
EPS next Year (2027-12-31): EPS=7.81 | Chg30d=-0.08% | Revisions=+47% | GrowthEPS=+21.2% | GrowthRev=+12.7%
[Analyst] Revisions Ratio: +16% (up=20, down=14)