10Y annualized return is
average
at 9.9% per year
SCHW has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Moderate Price-to-Earnings Ratio
Strong Operating and Net Profit Margins
Good Return on Equity
Low Debt Levels
Decent Interest Coverage
🏆 Strong Client Engagement
📈 Successful Integration
💪 Healthy Financial Fundamentals
🚀 Growth Momentum
🔍 Innovation and Product Expansion
📊 Strong Capital Management Strategy
High Price-to-Sales Ratio
High Price-to-Cash-Flow Ratio
Liquidity Concerns
Overall, Schwab shows strong business quality with successful integration, high client engagement, and healthy financial fundamentals. Future prospects are promising with growth momentum, innovative product expansions, and a strong capital management strategy. The company is well-positioned for continued success in the evolving market.
Analysis Date: January 21, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
The Charles Schwab Corporation is a company that helps people manage their money and make investments. They offer services like buying and selling stocks, giving financial advice, and helping with retirement plans. They also provide banking services, such as checking accounts and loans. With many offices across the U.S. and a few international locations, Schwab is there to support both individual investors and financial advisors.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Mixed Business Model
Competitive Advantages
Key Business Risks
Latest News
Charles Schwab reported over $2.0B in quarterly profits in Q1'25, with a net profit margin exceeding 40%, driven by strong market activity. The firm a...
WESTLAKE, Texas--(BUSINESS WIRE)--Schwab extends its long-standing partnership with National 4-H Council (4-H), which reaches nearly 6 million young p...
Liz Ann Sonders, Charles Schwab chief investment strategist, joins 'Closing Bell' to discuss Trump's comments on Fed Chair Powell and what it would me...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$105.64
Current Market Price: $68.51
IV/P Ratio: 1.54x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
35.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for SCHW
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (21.25)
P/B ratio ≤ 1.5 (3.51)
Current ratio ≥ 2.0 (0.97x)
Long-term debt < Net current assets (-6.52x)
Margin of safety (35.0%)
SCHW does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.26%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
100.00%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
30.31%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
Operating profit margin of 39.23% and net profit margin of 30.31% indicate robust profitability and efficient cost management.
Return on equity at 14.01% reflects effective management in generating profits from shareholders' equity.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.88x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.97x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a debt-to-equity ratio of 0.88 and a debt-to-assets ratio of 7.39%, the company maintains a conservative capital structure.
An interest coverage ratio of 1.20 suggests that the company is able to cover its interest obligations, although it is on the lower side.
The current ratio of 0.97 and quick ratio of 0.97 indicate that the company may have challenges meeting short-term liabilities.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Schwab reported record engagement levels with clients, resulting in strong trading activity and satisfaction scores. Client promoter scores reached all-time highs, reflecting positive sentiment and trust in the brand.
The company successfully completed the largest brokerage integration in industry history, welcoming over 17 million Ameritrade client accounts and bringing nearly $2 trillion in assets, with lower attrition than expected.
Schwab demonstrated strong revenue growth and disciplined expense management, leading to an adjusted pre-tax margin of 46.6% in Q4 and 42.5% for the full year.
Schwab is building momentum for 2025 with expectations of returning to a long-term growth rate of 5% to 7%. The company anticipates further NNA acceleration driven by deeper client relationships and new account growth.
Schwab is investing in a broader range of services, including alternative investment options for retail clients and enhanced capabilities for advisors, indicating a commitment to innovation and meeting evolving client needs.
The company plans to return excess capital to shareholders through dividends and potential stock buybacks, reflecting confidence in financial stability and growth prospects.