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Charles Schwab

NYSE:SCHW
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SCHW
NYSE
$64B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The last earnings update was 4 days ago. More info.


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SCHW Share Price and Events
7 Day Returns
2.3%
NYSE:SCHW
1.5%
US Capital Markets
1.6%
US Market
1 Year Returns
7.6%
NYSE:SCHW
8.2%
US Capital Markets
12.4%
US Market
SCHW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Charles Schwab (SCHW) 2.3% -2.8% -4.9% 7.6% 42.1% 98.5%
US Capital Markets 1.5% 3% -3.1% 8.2% 46.5% 89.3%
US Market 1.6% 2.3% -2.2% 12.4% 55.2% 105.4%
1 Year Return vs Industry and Market
  • SCHW underperformed the Market in United States of America which returned 12.4% over the past year.
Price Volatility
SCHW
Industry
5yr Volatility vs Market

SCHW Value

 Is Charles Schwab undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Charles Schwab to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Charles Schwab.

NYSE:SCHW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $15.76 * 19.2%
$3.02
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $15.76
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SCHW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.732 (1 + (1- 21%) (10.65%))
0.793
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NYSE:SCHW using Excess Returns Model Model

The calculations below outline how an intrinsic value for Charles Schwab is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:SCHW Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.2% – 8.59%) * $15.76)
$1.67
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.67 / (8.59% - 2.95%)
$29.63
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $15.76 + $29.63
$45.39
NYSE:SCHW Discount to Share Price
Calculation Result
Value per share (USD) From above. $45.39
Current discount Discount to share price of $47.64
= -1 x ($47.64 - $45.39) / $45.39
-5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Charles Schwab is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Charles Schwab's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Charles Schwab's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SCHW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $2.22
NYSE:SCHW Share Price ** NYSE (2018-11-09) in USD $47.64
United States of America Capital Markets Industry PE Ratio Median Figure of 66 Publicly-Listed Capital Markets Companies 21.28x
United States of America Market PE Ratio Median Figure of 2,971 Publicly-Listed Companies 18.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Charles Schwab.

NYSE:SCHW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SCHW Share Price ÷ EPS (both in USD)

= 47.64 ÷ 2.22

21.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charles Schwab is overvalued based on earnings compared to the US Capital Markets industry average.
  • Charles Schwab is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Charles Schwab's expected growth come at a high price?
Raw Data
NYSE:SCHW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
12.6%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 34 Publicly-Listed Capital Markets Companies 1.85x
United States of America Market PEG Ratio Median Figure of 2,086 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NYSE:SCHW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.44x ÷ 12.6%

1.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charles Schwab is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Charles Schwab's assets?
Raw Data
NYSE:SCHW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $13.35
NYSE:SCHW Share Price * NYSE (2018-11-09) in USD $47.64
United States of America Capital Markets Industry PB Ratio Median Figure of 125 Publicly-Listed Capital Markets Companies 4.78x
United States of America Market PB Ratio Median Figure of 4,972 Publicly-Listed Companies 1.88x
NYSE:SCHW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SCHW Share Price ÷ Book Value per Share (both in USD)

= 47.64 ÷ 13.35

3.57x

* Primary Listing of Charles Schwab.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Charles Schwab is good value based on assets compared to the US Capital Markets industry average.
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Value checks
We assess Charles Schwab's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Charles Schwab has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SCHW Future Performance

 How is Charles Schwab expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Charles Schwab expected to grow at an attractive rate?
  • Charles Schwab's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Charles Schwab's earnings growth is positive but not above the United States of America market average.
  • Charles Schwab's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SCHW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SCHW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 12.6%
NYSE:SCHW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 8.8%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 7.8%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SCHW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SCHW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 14,127 5,339 1
2021-12-31 13,150 4,852 1
2020-12-31 12,257 4,371 12
2019-12-31 11,395 4,630 3,956 16
2018-12-31 10,132 3,289 3,324 17
NYSE:SCHW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 9,705 3,467 2,994
2018-06-30 9,291 5,501 2,684
2018-03-31 8,935 3,088 2,401
2017-12-31 8,618 1,263 2,180
2017-09-30 8,346 4,139 2,108
2017-06-30 8,081 281 2,003
2017-03-31 7,779 1,454 1,879
2016-12-31 7,462 2,662 1,746
2016-09-30 7,108 1,866 1,646
2016-06-30 6,805 3,506 1,541
2016-03-31 6,543 2,182 1,465
2015-12-31 6,305 1,246 1,364

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Charles Schwab's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).
  • Charles Schwab's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SCHW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Charles Schwab Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SCHW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 4.19 4.19 4.19 1.00
2021-12-31 3.70 3.70 3.70 1.00
2020-12-31 3.21 3.34 3.00 13.00
2019-12-31 2.90 3.05 2.79 18.00
2018-12-31 2.44 2.49 2.40 17.00
NYSE:SCHW Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 2.22
2018-06-30 2.00
2018-03-31 1.79
2017-12-31 1.63
2017-09-30 1.58
2017-06-30 1.50
2017-03-31 1.42
2016-12-31 1.32
2016-09-30 1.25
2016-06-30 1.17
2016-03-31 1.11
2015-12-31 1.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Charles Schwab is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Charles Schwab's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Charles Schwab has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SCHW Past Performance

  How has Charles Schwab performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Charles Schwab's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Charles Schwab has delivered over 20% year on year earnings growth in the past 5 years.
  • Charles Schwab's 1-year earnings growth exceeds its 5-year average (42% vs 21.1%)
  • Charles Schwab's earnings growth has exceeded the US Capital Markets industry average in the past year (42% vs 27.8%).
Earnings and Revenue History
Charles Schwab's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Charles Schwab Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SCHW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 9,705.00 2,994.00 4,558.00
2018-06-30 9,291.00 2,684.00 4,437.00
2018-03-31 8,935.00 2,401.00 4,318.00
2017-12-31 8,618.00 2,180.00 4,200.00
2017-09-30 8,346.00 2,108.00 4,183.00
2017-06-30 8,081.00 2,003.00 4,056.00
2017-03-31 7,779.00 1,879.00 3,923.00
2016-12-31 7,462.00 1,746.00 3,779.00
2016-09-30 7,108.00 1,646.00 3,556.00
2016-06-30 6,805.00 1,541.00 3,464.00
2016-03-31 6,543.00 1,465.00 3,365.00
2015-12-31 6,305.00 1,364.00 3,409.00
2015-09-30 6,212.00 1,315.00 3,263.00
2015-06-30 6,121.00 1,262.00 3,234.00
2015-03-31 6,033.00 1,234.00 3,212.00
2014-12-31 5,985.00 1,261.00 3,142.00
2014-09-30 5,897.00 1,229.00 3,096.00
2014-06-30 5,764.00 1,199.00 3,032.00
2014-03-31 5,623.00 1,130.00 2,999.00
2013-12-31 5,435.00 1,010.00 3,008.00
2013-09-30 5,184.00 902.00 2,946.00
2013-06-30 5,007.00 858.00 2,893.00
2013-03-31 4,883.00 886.00 2,825.00
2012-12-31 4,813.00 883.00 2,743.00
2012-09-30 4,711.00 857.00 2,735.00
2012-06-30 4,696.00 839.00 2,722.00
2012-03-31 4,673.00 816.00 2,763.00
2011-12-31 4,691.00 864.00 2,648.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Charles Schwab has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Charles Schwab used its assets less efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Charles Schwab has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Charles Schwab's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Charles Schwab has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SCHW Health

 How is Charles Schwab's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Charles Schwab's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Charles Schwab's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Charles Schwab's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Charles Schwab's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 10.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Charles Schwab Company Filings, last reported 1 month ago.

NYSE:SCHW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 20,834.00 6,852.00 30,817.00
2018-06-30 20,097.00 6,735.00 24,787.00
2018-03-31 19,330.00 4,928.00 27,468.00
2017-12-31 18,525.00 20,719.00 29,895.00
2017-09-30 18,027.00 9,592.00 28,613.00
2017-06-30 17,489.00 5,502.00 28,518.00
2017-03-31 16,982.00 5,987.00 31,520.00
2016-12-31 16,421.00 4,872.00 33,451.00
2016-09-30 15,470.00 8,248.00 31,366.00
2016-06-30 14,990.00 10,337.00 32,094.00
2016-03-31 14,513.00 5,888.00 31,202.00
2015-12-31 13,402.00 5,110.00 32,109.00
2015-09-30 13,196.00 4,981.00 28,079.00
2015-06-30 12,423.00 4,788.00 27,512.00
2015-03-31 12,158.00 4,851.00 29,052.00
2014-12-31 11,803.00 3,376.00 32,660.00
2014-09-30 11,473.00 1,900.00 29,050.00
2014-06-30 11,170.00 1,901.00 26,508.00
2014-03-31 10,815.00 1,902.00 28,177.00
2013-12-31 10,381.00 3,090.00 31,798.00
2013-09-30 10,053.00 1,904.00 31,364.00
2013-06-30 9,720.00 1,630.00 33,733.00
2013-03-31 9,776.00 1,631.00 34,373.00
2012-12-31 9,589.00 2,814.00 41,768.00
2012-09-30 9,465.00 1,776.00 34,077.00
2012-06-30 9,110.00 1,999.00 31,237.00
2012-03-31 8,337.00 2,000.00 34,155.00
2011-12-31 7,714.00 2,853.00 35,306.00
  • Charles Schwab's level of debt (32.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (19.1% vs 32.9% today).
  • Debt is well covered by operating cash flow (50.6%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Charles Schwab's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Charles Schwab's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Charles Schwab has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SCHW Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.09%
Current annual income from Charles Schwab dividends. Estimated to be 1.15% next year.
If you bought $2,000 of Charles Schwab shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Charles Schwab's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.37%).
  • Charles Schwab's dividend is below the markets top 25% of dividend payers in United States of America (3.5%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SCHW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SCHW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.66 9.00
2019-12-31 0.56 12.00
2018-12-31 0.45 12.00
NYSE:SCHW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-25 0.520 1.127
2018-07-25 0.520 1.039
2018-04-19 0.400 0.727
2018-01-25 0.400 0.755
2017-10-19 0.320 0.654
2017-07-20 0.320 0.766
2017-04-20 0.320 0.785
2017-01-26 0.320 0.785
2016-10-21 0.280 0.745
2016-07-21 0.280 0.918
2016-04-21 0.280 1.002
2016-01-28 0.240 0.913
2015-10-22 0.240 0.774
2015-07-23 0.240 0.784
2015-04-22 0.240 0.742
2015-01-29 0.240 0.809
2014-10-23 0.240 0.843
2014-07-24 0.240 0.853
2014-04-23 0.240 0.906
2014-01-30 0.240 0.913
2013-10-24 0.240 0.968
2013-07-25 0.240 1.098
2013-04-24 0.240 1.221
2013-01-24 0.240 1.417
2012-10-25 0.240 1.726
2012-07-26 0.240 1.815
2012-04-25 0.240 1.883
2012-01-26 0.240 1.767
2011-10-27 0.240 2.030
2011-07-26 0.240 1.960
2011-04-26 0.240 1.444
2011-01-27 0.240 1.301
2010-10-27 0.240 1.453
2010-07-27 0.240 1.687
2010-04-27 0.240 1.506
2010-01-27 0.240 1.289
2009-10-22 0.240 1.306
2009-07-28 0.240 1.313
2009-04-28 0.240 1.367
2009-01-27 0.240 1.681
2008-11-12 0.240 1.506

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Charles Schwab's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Charles Schwab's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Charles Schwab afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Charles Schwab has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SCHW Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Walt Bettinger
COMPENSATION $14,348,737
AGE 57
TENURE AS CEO 10.1 years
CEO Bio

Mr. Walter William Bettinger, II, also known as Walt, has been the President and Chief Executive Officer at The Charles Schwab Corporation since February 20, 2007 and October 1, 2008 respectively. Mr. Bettinger serves as the Chief Executive Officer and President at Charles Schwab & Co., Inc. Mr. Bettinger served as the Head of Schwab Investor Services of Charles Schwab Corp. and served as its Chief Operating Officer from February 21, 2007 to October 2008. He served as the President of Individual Investor Enterprise - Schwab of Charles Schwab Corp. since November 2005. Mr. Bettinger served as an Executive Vice President of The Charles Schwab Corporation from June 2004 to February 21, 2007. From 2004 to 2007, he served as an Executive Vice President and President, Schwab Investor Services. He served as Chief Operating Officer of The Charles Schwab Corporation until October 2008. Mr. Bettinger served as Executive Vice President of Individual Investor Enterprise from 2004 to 2005 and served as its Executive Vice President, Corporate Services from 2002 to 2004. He served as the President and Chief Operating Officer of Individual Investor Enterprise - Schwab of Charles Schwab & Co. Inc. from June 2004 to October 2008. Mr. Bettinger served as an Executive Vice President and President of Corporate Services of Schwab from 2002 to June 2004. He served as an Executive Vice President and President of Retirement Plan Services of Schwab from 2000 to 2002 and a General Manager of SchwabPlan 401(k) product offering. Mr. Bettinger served as the Chief Operating Officer of Retirement Plan Services enterprise. He joined Schwab in 1995. Mr. Bettinger founded Hampton Company in 1983. He served as the Chairman of the board, President and Chief Executive Officer of Charles Schwab Trust Company from 2000 to 2004. Mr. Bettinger has been a Director of Charles Schwab Corp. since October 2008 and Charles Schwab Bank since 2006. He has been a Director of The Charles Schwab Corporation Inc. since October 1, 2008. He has been Trustee at various fund in Schwab fund complex since 2008. He serves as a Director of Charles Schwab Investment Management, Inc. Mr. Bettinger serves as a Member of Executive Advisory Board at the Ohio University of School of Business. He was named the "Impact Player of the Year" among bundled 401(k) executives by Defined Contribution News in 2002. Mr. Bettinger is a Certified Pension Consultant (CPC) and Qualified Pension Administrator (QPA) by the American Society of Pension Actuaries. He attended Delta State University in Cleveland, M.S. and holds a Bachelor of Business Administration degree with a major in Finance, summa cum laude, from Ohio University. Mr. Bettinger has also completed the General Management program offered by the Harvard Business School.

CEO Compensation
  • Walt's compensation has been consistent with company performance over the past year.
  • Walt's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Charles Schwab management team in years:

5
Average Tenure
56.5
Average Age
  • The average tenure for the Charles Schwab management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Walt Bettinger

TITLE
President
COMPENSATION
$14M
AGE
57
TENURE
10.1 yrs

Peter Crawford

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
49
TENURE
1.5 yrs

Joe Martinetto

TITLE
Senior Executive VP & COO
COMPENSATION
$4M
AGE
55
TENURE
0.8 yrs

Bernie Clark

TITLE
Executive VP & Head of Advisor Services
COMPENSATION
$3M
AGE
60
TENURE
5.9 yrs

Marie Chandoha

TITLE
CEO of Charles Schwab Investment Management Inc
COMPENSATION
$3M
AGE
56
TENURE
7.8 yrs

Tim Heier

TITLE
Executive VP & Chief Technology Officer

Dennis Howard

TITLE
Executive VP & Chief Information Officer

Rich Fowler

TITLE
Senior Vice President of Investor Relations

David Garfield

TITLE
Executive VP
AGE
61
TENURE
4.1 yrs

Joe Carberry

TITLE
Senior Vice President of Corporate Communications
Board of Directors Tenure

Average tenure and age of the Charles Schwab board of directors in years:

16.3
Average Tenure
70.5
Average Age
  • The average tenure for the Charles Schwab board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Chuck Schwab

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
81
TENURE
32.8 yrs

Walt Bettinger

TITLE
President
COMPENSATION
$14M
AGE
57
TENURE
10.1 yrs

Chris Dodds

TITLE
Independent Director
COMPENSATION
$461K
AGE
58
TENURE
4.1 yrs

Frank Herringer

TITLE
Director
COMPENSATION
$277K
AGE
75
TENURE
22.8 yrs

Roger Walther

TITLE
Director
COMPENSATION
$282K
AGE
82
TENURE
29.8 yrs

Mark Goldfarb

TITLE
Director
COMPENSATION
$287K
AGE
66
TENURE
5.9 yrs

Stephen McLin

TITLE
Director
COMPENSATION
$401K
AGE
71
TENURE
30.8 yrs

Arun Sarin

TITLE
Director
COMPENSATION
$267K
AGE
63
TENURE
9.1 yrs

Paula Sneed

TITLE
Director
COMPENSATION
$262K
AGE
70
TENURE
16.8 yrs

Robert Wilson

TITLE
Director
COMPENSATION
$277K
AGE
77
TENURE
15.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price ($) Value ($)
06. Nov 18 Sell Marie Chandoha Individual 05. Nov 18 05. Nov 18 -4,606 $47.19 $-217,351.61
24. Jul 18 Sell Charles Schwab Individual 24. Jul 18 24. Jul 18 -190,500 $52.75 $-10,049,275.05
31. May 18 Sell Marie Chandoha Individual 30. May 18 30. May 18 -10,000 $56.00 $-560,026.00
23. May 18 Sell Charles Schwab Individual 22. May 18 22. May 18 -174,750 $59.85 $-10,458,385.58
21. May 18 Sell Charles Schwab Individual 21. May 18 21. May 18 -210,750 $59.45 $-12,529,003.20
17. May 18 Sell Charles Schwab Individual 16. May 18 16. May 18 -101,970 $59.13 $-6,029,312.75
09. May 18 Sell HOS Family Partners, LLC Company 09. May 18 09. May 18 -300,000 $57.99 $-17,397,150.00
08. May 18 Sell Charles Schwab Individual 08. May 18 08. May 18 -250,000 $57.23 $-14,307,050.00
07. May 18 Sell Charles Schwab Individual 04. May 18 07. May 18 -450,000 $57.01 $-25,491,960.00
26. Apr 18 Sell HOS Family Partners, LLC Company 25. Apr 18 25. Apr 18 -165,000 $55.23 $-9,113,395.50
25. Apr 18 Sell HOS Family Partners, LLC Company 25. Apr 18 25. Apr 18 -200,000 $54.60 $-10,919,440.00
24. Apr 18 Sell Charles Schwab Individual 24. Apr 18 24. Apr 18 -262,000 $55.27 $-14,414,887.60
23. Apr 18 Sell Charles Schwab Individual 23. Apr 18 23. Apr 18 -250,000 $54.99 $-13,747,475.00
27. Feb 18 Sell Paula Sneed Individual 27. Feb 18 27. Feb 18 -12,040 $54.91 $-661,156.13
15. Feb 18 Sell Charles Schwab Individual 14. Feb 18 14. Feb 18 -74,450 $52.17 $-3,884,294.74
30. Jan 18 Sell Charles Schwab Individual 29. Jan 18 29. Jan 18 -240,000 $54.03 $-12,966,096.00
25. Jan 18 Sell Charles Schwab Individual 25. Jan 18 25. Jan 18 -240,000 $54.49 $-13,076,664.00
24. Jan 18 Sell Charles Schwab Individual 24. Jan 18 24. Jan 18 -240,000 $55.13 $-13,230,744.00
18. Jan 18 Sell Charles Schwab Individual 18. Jan 18 18. Jan 18 -300,000 $55.31 $-16,593,900.00
29. Nov 17 Sell Charles Schwab Individual 29. Nov 17 29. Nov 17 -211,620 $48.30 $-10,221,817.37
16. Nov 17 Sell Charles Schwab Individual 15. Nov 17 16. Nov 17 -350,000 $44.78 $-15,629,022.50
13. Nov 17 Sell Charles Schwab Individual 10. Nov 17 10. Nov 17 -200,000 $44.29 $-8,857,960.00
X
Management checks
We assess Charles Schwab's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Charles Schwab has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SCHW News

External News
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Simply Wall St News

Intrinsic Calculation For The Charles Schwab Corporation (NYSE:SCHW) Shows Investors Are Overpaying

Valuing SCHW, a financial stock, can be daunting since these capital market firms generally have cash flows that are impacted by regulations that are not imposed upon other industries. … For example, capital market businesses are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

Do You Like The Charles Schwab Corporation (NYSE:SCHW) At This P/E Ratio?

To keep it practical, we'll show how The Charles Schwab Corporation's (NYSE:SCHW) P/E ratio could help you assess the value on offer. … Charles Schwab has a P/E ratio of 19.43, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Should We Expect From The Charles Schwab Corporation's (NYSE:SCHW) Earnings Over The Next Year?

After The Charles Schwab Corporation's (NYSE:SCHW) earnings announcement in June 2018,. … with earnings expected to grow by 36% in the upcoming year … the past 5-year average growth rate of 20%

Simply Wall St -

Why The Charles Schwab Corporation (NYSE:SCHW) Could Be Your Next Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of The Charles Schwab Corporation (NYSE:SCHW), it

Simply Wall St -

The Charles Schwab Corporation (NYSE:SCHW) Investors Are Paying Above The Intrinsic Value

Pricing SCHW, a financial stock, can be difficult since these capital market businesses have cash flows that are affected by regulations that are not imposed upon other sectors. … Maintaining a certain level of cash capital ratio is common for these financial firms to abide by, in order to minimize risks to their shareholders.

Simply Wall St -

Interested In The Charles Schwab Corporation (NYSE:SCHW)? Here's What Its Recent Performance Looks Like

In this article, I will take a look at The Charles Schwab Corporation's (NYSE:SCHW) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … How SCHW fared against its long-term earnings performance and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16.95%, indicating the rate at which SCHW is growing has accelerated

Simply Wall St -

Does The Charles Schwab Corporation's (NYSE:SCHW) Recent Track Record Look Strong?

Assessing The Charles Schwab Corporation's (NYSE:SCHW) past track record of performance is an insightful exercise for investors. … For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … This means that whatever tailwind the industry is profiting from, Charles Schwab is able to leverage this to its advantage.What does this mean?

Simply Wall St -

Does The Charles Schwab Corporation (NYSE:SCHW) Fall With The Market?

Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few. … Not every stock is exposed to the same level of market risk. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

Is The Charles Schwab Corporation (NYSE:SCHW) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SCHW Price per share = $58.82 Earnings per share = $1.789 ∴ Price-Earnings Ratio = $58.82 ÷ $1.789 = 32.9x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … We preferably want to compare the stock’s P/E ratio to the average of companies that have similar features to SCHW, such as capital structure and profitability. … For example, if you are inadvertently comparing riskier firms with SCHW, then SCHW’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Is The Charles Schwab Corporation (NYSE:SCHW) Expensive For A Reason? A Look At The Intrinsic Value

NYSE:SCHW Intrinsic Value May 7th 18 Deriving SCHW's Intrinsic Value The key belief for this model is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (20.13% – 9.92%) * $16.31 = $1.66 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $1.66 / (9.92% – 2.47%) = $22.32 Putting this all together, we get the value of SCHW’s share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $16.31 + $22.32 = $38.63 Relative to today's price of $56.09, SCHW is overvalued.

Simply Wall St -

SCHW Company Info

Map
Description

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through 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. The Advisor Services segment provides custodial, trading, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with cash management capabilities; third-party mutual funds, as well as proprietary mutual funds, plus mutual fund trading, and clearing services to broker-dealers; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans, home equity loans and lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. The company serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, England, Hong Kong, Singapore, and Australia. The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California.

Details
Name: The Charles Schwab Corporation
SCHW
Exchange: NYSE
Founded: 1971
$64,335,571,439
1,350,452,801
Website: http://www.aboutschwab.com
Address: The Charles Schwab Corporation
211 Main Street,
San Francisco,
California, 94105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SCHW Common Stock New York Stock Exchange US USD 22. Sep 1987
DB SWG Common Stock Deutsche Boerse AG DE EUR 22. Sep 1987
LSE 0L3I Common Stock London Stock Exchange GB USD 22. Sep 1987
BMV SCHW * Common Stock Bolsa Mexicana de Valores MX MXN 22. Sep 1987
NYSE SCHW.PRC DEP SHS PFD C New York Stock Exchange US USD 29. Jul 2015
NYSE SCHW.PRD DEP SHS 1/40 PFD New York Stock Exchange US USD 02. Mar 2016
DB A188UE 4.625%-FRN SUB PERP USD 'E' Deutsche Boerse AG DE USD 25. Oct 2016
BOVESPA SCHW34 BDR EACH REPR 1 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
19,100
Charles Schwab employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/11 21:10
End of day share price update: 2018/11/09 00:00
Last estimates confirmation: 2018/11/09
Last earnings filing: 2018/11/07
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.