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SCHW

Charles SchwabNYSE:SCHW Stock Report

Market Cap

US$132.9b

7D

5.0%

1Y

116.2%

Updated

23 Sep, 2021

Data

Company Financials +
SCHW fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends4/6

SCHW Overview

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

Charles Schwab Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Charles Schwab
Historical stock prices
Current Share PriceUS$74.30
52 Week HighUS$33.96
52 Week LowUS$76.37
Beta1.05
1 Month Change0.20%
3 Month Change0.70%
1 Year Change116.24%
3 Year Change47.07%
5 Year Change142.10%
Change since IPO23,866.66%

Recent News & Updates

Shareholder Returns

SCHWUS Capital MarketsUS Market
7D5.0%-0.6%-0.5%
1Y116.2%68.1%37.5%

Return vs Industry: SCHW exceeded the US Capital Markets industry which returned 65.2% over the past year.

Return vs Market: SCHW exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is SCHW's price volatile compared to industry and market?
SCHW volatility
SCHW Beta1.05
Industry Beta1.19
Market Beta1

Stable Share Price: SCHW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SCHW's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197132,500Walt Bettingerhttps://www.schwab.com

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.

Charles Schwab Fundamentals Summary

How do Charles Schwab's earnings and revenue compare to its market cap?
SCHW fundamental statistics
Market CapUS$132.92b
Earnings (TTM)US$4.17b
Revenue (TTM)US$15.87b

33.6x

P/E Ratio

8.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCHW income statement (TTM)
RevenueUS$15.87b
Cost of RevenueUS$513.00m
Gross ProfitUS$15.35b
ExpensesUS$11.18b
EarningsUS$4.17b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 15, 2021

Earnings per share (EPS)2.41
Gross Margin96.77%
Net Profit Margin26.28%
Debt/Equity Ratio56.8%

How did SCHW perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

30%

Payout Ratio

Valuation

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

33.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCHW ($74.3) is trading above our estimate of fair value ($64.71)

Significantly Below Fair Value: SCHW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCHW is poor value based on its PE Ratio (33.6x) compared to the US Capital Markets industry average (14.8x).

PE vs Market: SCHW is poor value based on its PE Ratio (33.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SCHW is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SCHW is good value based on its PB Ratio (3x) compared to the US Capital Markets industry average (61.3x).


Future Growth

How is Charles Schwab forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHW's forecast earnings growth (17.1% per year) is above the savings rate (2%).

Earnings vs Market: SCHW's earnings (17.1% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: SCHW's revenue (7.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: SCHW's revenue (7.5% 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 (13.5%).


Past Performance

How has Charles Schwab performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCHW has high quality earnings.

Growing Profit Margin: SCHW's current net profit margins (26.3%) are lower than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: SCHW's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: SCHW's earnings growth over the past year (34.9%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: SCHW earnings growth over the past year (34.9%) underperformed the Capital Markets industry 77.4%.


Return on Equity

High ROE: SCHW's Return on Equity (8%) is considered low.


Financial Health

How is Charles Schwab's financial position?


Financial Position Analysis

Short Term Liabilities: SCHW's short term assets ($184.8B) do not cover its short term liabilities ($497.8B).

Long Term Liabilities: SCHW's short term assets ($184.8B) exceed its long term liabilities ($19.2B).


Debt to Equity History and Analysis

Debt Level: SCHW's debt to equity ratio (56.8%) is considered high.

Reducing Debt: SCHW's debt to equity ratio has reduced from 68.3% to 56.8% over the past 5 years.

Debt Coverage: SCHW's debt is well covered by operating cash flow (24%).

Interest Coverage: Insufficient data to determine if SCHW's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCHW's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: SCHW's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (3.63%).


Stability and Growth of Payments

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 reasonably low payout ratio (29.8%), 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 (20.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Walt Bettinger (60 yo)

12.92yrs

Tenure

US$15,959,193

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Walt's total compensation ($USD15.96M) is above average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: SCHW's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: SCHW's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SCHW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.5%.


Top Shareholders

Company Information

The Charles Schwab Corporation's 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$132.915b
  • Shares outstanding: 1.89b
  • Website: https://www.schwab.com

Number of Employees


Location

  • The Charles Schwab Corporation
  • 3000 Schwab Way
  • Westlake
  • Texas
  • 76262
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:54
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.