NYSE:SCHW

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

Stable Share Price: SCHW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SCHW's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

SCHW

-1.0%

US Capital Markets

0.3%

US Market


1 Year Return

22.3%

SCHW

16.9%

US Capital Markets

21.1%

US Market

Return vs Industry: SCHW exceeded the US Capital Markets industry which returned 15.7% over the past year.

Return vs Market: SCHW exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

SCHWIndustryMarket
7 Day-3.2%-1.0%0.3%
30 Day13.9%8.0%3.3%
90 Day52.1%22.8%14.2%
1 Year24.5%22.3%19.8%16.9%23.8%21.1%
3 Year11.8%7.1%30.6%20.6%45.0%35.4%
5 Year147.2%132.7%148.2%117.1%127.7%102.3%

Long-Term 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?

27.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCHW ($59.23) is trading above our estimate of fair value ($46.21)

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 (27.8x) compared to the US Capital Markets industry average (27.1x).

PE vs Market: SCHW is poor value based on its PE Ratio (27.8x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: SCHW is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SCHW is good value based on its PB Ratio (2.9x) compared to the US Capital Markets industry average (5x).


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHW's forecast earnings growth (10.9% per year) is above the savings rate (2%).

Earnings vs Market: SCHW's earnings (10.9% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: SCHW's revenue (6.8% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: SCHW's revenue (6.8% 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 (10.8%).


Next Steps

Past Performance

How has Charles Schwab performed over the past 5 years?

17.4%

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%) are lower than last year (32.9%).


Past Earnings Growth Analysis

Earnings Trend: SCHW's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: SCHW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCHW had negative earnings growth (-13.7%) over the past year, making it difficult to compare to the Capital Markets industry average (4.9%).


Return on Equity

High ROE: SCHW's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Charles Schwab's financial position?


Financial Position Analysis

Short Term Liabilities: SCHW's short term assets ($106.8B) do not cover its short term liabilities ($379.9B).

Long Term Liabilities: SCHW's short term assets ($106.8B) exceed its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: SCHW's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: SCHW's debt to equity ratio has reduced from 37.2% to 29.2% over the past 5 years.

Debt Coverage: SCHW's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCHW's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: SCHW's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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 (33.3%), 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 (23.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Walt Bettinger (59 yo)

12.25yrs

Tenure

US$16,101,141

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 a...


CEO Compensation Analysis

Compensation vs Market: Walt's total compensation ($USD16.10M) is above average for companies of similar size in the US market ($USD10.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Walter Bettinger
President12.25yrsUS$16.10m0.030%
$ 33.8m
Peter Crawford
Executive VP & CFO3.67yrsUS$2.67m0.0015%
$ 1.6m
Joseph Martinetto
Senior EVP & COO2.92yrsUS$5.41m0.011%
$ 12.4m
Jonathan Craig
Senior Executive Vice President2.92yrsUS$4.04mno data
Tim Heier
Executive VP & CTOno datano datano data
Dennis Howard
Executive VP & Chief Information Officerno datano datano data
Richard Fowler
Senior Vice President of Investor Relationsno datano datano data
Peter Morgan
Executive VP1.17yrsno data0.00051%
$ 567.6k
Joe Carberry
Senior Vice President of Corporate Communicationsno datano datano data
Catherine Casey
Executive Vice President of Human Resourcesno datano datano data
Lisa Hunt
Executive VP of International Services & Business Initiativesno datano datano data
Bernard Clark
Executive Vice President & Head of Schwab Advisor Services8.08yrsUS$3.05m0.0041%
$ 4.5m

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: SCHW's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Walter Bettinger
President12.25yrsUS$16.10m0.030%
$ 33.8m
Charles Schwab
Founder & Chairman35yrsUS$6.13m6.91%
$ 7.7b
Christopher Dodds
Independent Director6.25yrsUS$490.50k0.025%
$ 27.6m
Arun Sarin
Independent Director11.25yrsUS$285.00k0.00077%
$ 857.0k
Paula Sneed
Independent Director19yrsUS$270.00k0.0060%
$ 6.7m
Frank Herringer
Independent Director25yrsUS$295.00k0.0098%
$ 10.9m
Brian Levitt
Independent Vice Chairman of the Board0.25yrno data0.0012%
$ 1.3m
Joan Dea
Independent Director3.25yrsUS$433.00k0.00059%
$ 656.7k
John Adams
Independent Director6yrsUS$471.50k0.0012%
$ 1.3m
Stephen Ellis
Independent Director8.25yrsUS$285.00k0.0019%
$ 2.1m
William Haraf
Independent Director6yrsUS$456.50k0.0011%
$ 1.2m
Mark Goldfarb
Independent Director8.08yrsUS$300.00k0.0015%
$ 1.6m

8.2yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SCHW's board of directors are considered experienced (8.2 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 46.3%.


Top Shareholders

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$111.298b
  • Shares outstanding: 1.88b
  • 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
SWGXTRA (XETRA Trading Platform)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
SWGETLX (Eurotlx)YesCommon StockITEURSep 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 4 REP 1 COMBRBRLApr 2016
A188UEDB (Deutsche Boerse AG)PERP SUB -E NTDEUSDOct 2016

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 Analysis2021/01/19 23:59
End of Day Share Price2021/01/19 00:00
Earnings2020/12/31
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.