NYSE:SCHW

Stock Analysis Report

Executive Summary

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Charles Schwab's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

SCHW

1.4%

US Capital Markets

0.4%

US Market


1 Year Return

-2.8%

SCHW

8.3%

US Capital Markets

11.4%

US Market

Return vs Industry: SCHW underperformed the US Capital Markets industry which returned 8.3% over the past year.

Return vs Market: SCHW underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

SCHWIndustryMarket
7 Day6.0%1.4%0.4%
30 Day-2.8%-1.7%0.3%
90 Day-6.1%-2.3%-1.2%
1 Year-1.4%-2.8%10.7%8.3%13.9%11.4%
3 Year32.7%28.7%53.5%44.9%47.2%37.6%
5 Year57.1%49.7%73.8%58.0%62.4%44.6%

Price Volatility Vs. Market

How volatile is Charles Schwab's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Charles Schwab undervalued compared to its fair value and its price relative to the market?

9.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCHW ($41.37) is trading below our estimate of fair value ($45.77)

Significantly Below Fair Value: SCHW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SCHW is good value based on its PE Ratio (15.2x) compared to the Capital Markets industry average (32x).

PE vs Market: SCHW is good value based on its PE Ratio (15.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SCHW is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: SCHW is good value based on its PB Ratio (2.5x) compared to the US Capital Markets industry average (6.3x).


Next Steps

Future Growth

How is Charles Schwab forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHW's forecast earnings growth (2.5% per year) is below the savings rate (2.7%).

Earnings vs Market: SCHW's earnings (2.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: SCHW's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCHW's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SCHW's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCHW's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Charles Schwab performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCHW's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: SCHW's earnings growth over the past year (20.6%) is below its 5-year average (24.8% per year).

Earnings vs Industry: SCHW earnings growth over the past year (20.6%) underperformed the Capital Markets industry 29.3%.


Return on Equity

High ROE: SCHW's Return on Equity (17.7%) is considered low.


Return on Assets

ROA vs Industry: SCHW's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate SCHW's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Charles Schwab's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SCHW has a low level of unsold assets or inventory.

Debt Coverage by Assets: SCHW's debt is covered by short term assets (assets are 11.1x debt).


Financial Institutions Analysis

Asset Level: SCHW's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if SCHW has a sufficient allowance for bad loans.

Low Risk Liabilities: SCHW reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SCHW has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SCHW has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SCHW has an appropriate level of bad loans.


Next Steps

Dividend

What is Charles Schwab's current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SCHW's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SCHW's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: SCHW's dividends per share have been stable in the past 10 years.

Growing Dividend: SCHW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.5%), SCHW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCHW's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

What is the CEO of Charles Schwab's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Walt Bettinger (58yo)

11yrs

Tenure

US$15,627,607

Compensation

Mr. Walter William Bettinger, II, also known as Walt, has served as President and Chief Executive Officer of The Charles Schwab Corporation and a Member of the Board of Directors since 2008. He also serves ...


CEO Compensation Analysis

Compensation vs. Market: Walt's total compensation ($USD15.63M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Walt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: SCHW's management team is considered experienced (2 years average tenure).


Board Age and Tenure

14.4yrs

Average Tenure

69yo

Average Age

Experienced Board: SCHW's board of directors are seasoned and experienced ( 14.4 years average tenure).


Insider Trading

Insider Buying: SCHW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$100,36705 Aug 19
Mark Goldfarb
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,595
Max PriceUS$38.68
BuyUS$115,25007 May 19
Charles Ruffel
EntityIndividual
Shares2,500
Max PriceUS$46.10
SellUS$2,604,27003 May 19
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares56,280
Max PriceUS$46.29
SellUS$11,492,10029 Apr 19
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares250,000
Max PriceUS$45.97
SellUS$22,781,60025 Apr 19
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares500,000
Max PriceUS$45.57
SellUS$11,321,55023 Apr 19
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares250,000
Max PriceUS$45.29
SellUS$1,060,30018 Apr 19
Nigel Murtagh
EntityIndividual
Shares23,200
Max PriceUS$45.70
SellUS$11,760,20001 Feb 19
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares250,000
Max PriceUS$47.04
SellUS$17,989,80415 Nov 18
Charles Schwab
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares383,000
Max PriceUS$47.11
SellUS$217,35206 Nov 18
Marie Chandoha
EntityIndividual
Shares4,606
Max PriceUS$47.19

Ownership Breakdown


Management Team

  • Walt Bettinger (58yo)

    President

    • Tenure: 11yrs
    • Compensation: US$15.63m
  • Joe Martinetto (56yo)

    Senior EVP & COO

    • Tenure: 1.7yrs
    • Compensation: US$5.31m
  • Lisa Hunt

    Executive VP of International Services & Business Initiatives

    • Tenure: 0yrs
  • Joe Carberry

    Senior Vice President of Corporate Communications

    • Tenure: 0yrs
  • Peter Crawford (50yo)

    Executive VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$2.27m
  • Jonathan Craig (47yo)

    Senior Executive Vice President of Investor Services

    • Tenure: 0.8yrs
  • Dennis Howard

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
  • Rich Fowler

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Catherine Casey

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • Tim Heier

    Executive VP & CTO

    • Tenure: 0yrs

Board Members

  • Chuck Schwab (82yo)

    Chairman of the Board

    • Tenure: 33.8yrs
    • Compensation: US$6.05m
  • Chris Dodds (59yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$499.00k
  • Arun Sarin (64yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$285.00k
  • Roger Walther (83yo)

    Independent Director

    • Tenure: 30.8yrs
    • Compensation: US$300.00k
  • Paula Sneed (71yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$280.00k
  • Frank Herringer (76yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$295.00k
  • Stephen McLin (72yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$438.00k
  • Stephen Ellis (57yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$285.00k
  • Walt Bettinger (58yo)

    President

    • Tenure: 11yrs
    • Compensation: US$15.63m
  • Mark Goldfarb (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$310.00k

Company Information

The Charles Schwab Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Charles Schwab Corporation
  • Ticker: SCHW
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$54.078b
  • Shares outstanding: 1.31b
  • Website: https://www.schwab.com

Number of Employees


Location

  • The Charles Schwab Corporation
  • 211 Main Street
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCHWNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1987
SWGDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1987
SCHW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1987
0L3ILSE (London Stock Exchange)YesCommon StockGBUSDSep 1987
SCHWWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1987
SCHW.PRCNYSE (New York Stock Exchange)DEP SHS PFD CUSUSDJul 2015
SCHW.PRDNYSE (New York Stock Exchange)DEP SHS 1/40 PFDUSUSDMar 2016
SCHW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLApr 2016
A188UEDB (Deutsche Boerse AG)4.625%-FRN SUB PERP USD 'E'DEUSDOct 2016
A19RL4DB (Deutsche Boerse AG)5%-FRN PERP USD1000 'F'DEUSDOct 2017

Biography

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:40
End of Day Share Price2019/10/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.