SCHW Stock Overview
The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
Charles Schwab Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$73.21|
|52 Week High||US$96.24|
|52 Week Low||US$59.35|
|1 Month Change||4.08%|
|3 Month Change||15.49%|
|1 Year Change||-0.027%|
|3 Year Change||106.52%|
|5 Year Change||61.22%|
|Change since IPO||23,515.06%|
Recent News & Updates
With EPS Growth And More, Charles Schwab (NYSE:SCHW) Makes An Interesting Case
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Charles Schwab (NYSE:SCHW) Is Paying Out A Larger Dividend Than Last Year
The Charles Schwab Corporation ( NYSE:SCHW ) has announced that it will be increasing its dividend from last year's...
Charles Schwab: Stellar Future With Higher Interest Rates
The average yield on Schwab's interest-earning assets went up 26 basis points from 1.47% in 1Q22 to 1.73% in 2Q22. Net interest went up $361 million from $2,183 million in 1Q22 to $2,544 million in 2Q22. The 2Q22 period was in an environment where interest rates were lower than they are today and lower than they are expected to be in the future. Introduction My thesis is that Schwab (SCHW) has a stellar future as we move to a world with higher interest rates. Net interest revenue went up $361 million from $2,183 million in 1Q22 to $2,544 million in 2Q22. Bank call reports show that more of this type of revenue makes its way to the bottom line than other types of revenue. As such, GAAP net income and adjusted net income went up from $1,402 million and $1,591 million, respectively, in 1Q22 to $1,793 million and $1,981 million, respectively in 2Q22 per the 2Q22 release. The Numbers Interest revenue went up from 1Q22 to 2Q22 because the average yield burgeoned from 1.47% to 1.73% as rates increased. We see from the 1Q22 release that the net interest revenue was $2,183 million after $136 million in expenses on the $2,319 million interest revenue: 1Q22 net interest revenue (1Q22 release) The 2Q22 release shows that net interest revenue was $2,544 million after $166 million in expenses on the $2,710 million interest revenue: 2Q22 net interest revenue (2Q22 release) It is crucial that the average yield went up 26 basis points from 1.47% to 1.73%. This allowed Schwab to generate more interest revenue even though the level of interest-earning assets went down from $632.4 billion to $623.6 billion. One of the intriguing things about these numbers is that the 2Q22 period was in an environment where interest rates were lower than they are today and lower than they are expected to be in the future. The FRED Federal Funds Effective Rate went up from almost 1.75% to nearly 2.5% in late July but this was after the 2Q22 period ended: Historical Federal Funds Effective Rate ((FRED)) In the July 2022 Summer Update, it is shown that this effective rate is expected to continue climbing up to 3.5% in the near future: Federal Funds Effective Date Since January (July 2022 Summer Update) The Secured Overnight Financing Rate (“SOFR”) is replacing the London Interbank Offered Rate (“LIBOR”) but rates are going up no matter how we look at things. The Federal Reserve Bank of New York shows that the SOFR was under 1.5% for most of 2Q22 and it went above 2.25% starting on July 28th: SOFR (Federal Reserve Bank of New York) Valuation The 2Q22 adjusted net income is $1,981 million such that the adjusted annualized net income is $7,924 million. I think Schwab is worth 20 to 22x this amount or $158 to $174 billion.
|SCHW||US Capital Markets||US Market|
Return vs Industry: SCHW exceeded the US Capital Markets industry which returned -25.4% over the past year.
Return vs Market: SCHW exceeded the US Market which returned -23.2% over the past year.
|SCHW Average Weekly Movement||4.4%|
|Capital Markets Industry Average Movement||0.4%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
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
The Charles Schwab Corporation, together with 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, investment advisory, banking and trust, retirement plan, 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 and mutual fund clearing services, as well as compliance solutions.
Charles Schwab Fundamentals Summary
|SCHW fundamental statistics|
Is SCHW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SCHW income statement (TTM)|
|Cost of Revenue||US$587.00m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 17, 2022
|Earnings per share (EPS)||3.07|
|Net Profit Margin||30.45%|
How did SCHW perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is SCHW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for SCHW?
Other financial metrics that can be useful for relative valuation.
|What is SCHW's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SCHW's PE Ratio compare to its peers?
|SCHW PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
MS Morgan Stanley
GS Goldman Sachs Group
IBKR Interactive Brokers Group
RJF Raymond James Financial
SCHW Charles Schwab
Price-To-Earnings vs Peers: SCHW is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (14.3x).
Price to Earnings Ratio vs Industry
How does SCHW's PE Ratio compare vs other companies in the US Capital Markets Industry?
Price-To-Earnings vs Industry: SCHW is good value based on its Price-To-Earnings Ratio (23.8x) compared to the US Capital Markets industry average (24.9x)
Price to Earnings Ratio vs Fair Ratio
What is SCHW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||23.8x|
|Fair PE Ratio||19.3x|
Price-To-Earnings vs Fair Ratio: SCHW is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).
Share Price vs Fair Value
What is the Fair Price of SCHW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: SCHW ($73.21) is trading below our estimate of fair value ($108.83)
Significantly Below Fair Value: SCHW is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Charles Schwab forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCHW's forecast earnings growth (15.6% per year) is above the savings rate (1.9%).
Earnings vs Market: SCHW's earnings (15.6% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: SCHW's earnings are forecast to grow, but not significantly.
Revenue vs Market: SCHW's revenue (8.2% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: SCHW's revenue (8.2% 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 high in 3 years time (21.4%)
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How has Charles Schwab performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCHW has high quality earnings.
Growing Profit Margin: SCHW's current net profit margins (30.5%) are higher than last year (26.3%).
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 earnings growth over the past year (38.7%) exceeds its 5-year average (17.4% per year).
Earnings vs Industry: SCHW earnings growth over the past year (38.7%) exceeded the Capital Markets industry 33.2%.
Return on Equity
High ROE: SCHW's Return on Equity (14.2%) is considered low.
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How is Charles Schwab's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: SCHW's short term assets ($238.3B) do not cover its short term liabilities ($571.3B).
Long Term Liabilities: SCHW's short term assets ($238.3B) exceed its long term liabilities ($21.7B).
Debt to Equity History and Analysis
Debt Level: SCHW has more cash than its total debt.
Reducing Debt: SCHW's debt to equity ratio has increased from 31.3% to 63.4% over the past 5 years.
Debt Coverage: SCHW's debt is not well covered by operating cash flow (9.1%).
Interest Coverage: Insufficient data to determine if SCHW's interest payments on its debt are well covered by EBIT.
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What is Charles Schwab current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Charles Schwab Dividend Yield vs Market|
|Company (Charles Schwab)||1.2%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Capital Markets)||2.9%|
|Analyst forecast in 3 Years (Charles Schwab)||1.4%|
Notable Dividend: SCHW's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: SCHW's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (4.75%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (24.9%), SCHW's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (107.8%), SCHW's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Walt Bettinger (61 yo)
Mr. Walter William Bettinger II also known as Walt, has been Chief Executive Officer and Director at The Charles Schwab Corporation since late 2008 and has been its Co-Chairman since July 2022 and joined t...
CEO Compensation Analysis
|Walt Bettinger's Compensation vs Charles Schwab Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$22m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$16m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$16m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$16m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$14m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$20m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$12m||US$1m|
Compensation vs Market: Walt's total compensation ($USD21.94M) is above average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Walt's compensation has increased by more than 20% in the past year.
Experienced Management: SCHW's management team is considered experienced (4.7 years average tenure).
Experienced Board: SCHW's board of directors are considered experienced (9.9 years average tenure).
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
|01 Aug 22||BuyUS$2,576,817||The Toronto-Dominion Bank||Company||36,504||US$70.59|
|29 Jul 22||SellUS$19,172,195||Charles Schwab||Individual||284,900||US$69.43|
|27 Jul 22||SellUS$12,127,701||The Toronto-Dominion Bank||Company||169,334||US$71.62|
|21 Jul 22||SellUS$7,501,884||Charles Schwab||Individual||120,000||US$62.52|
|20 Jul 22||SellUS$7,524,384||Charles Schwab||Individual||120,000||US$62.70|
|26 May 22||SellUS$10,155,966||Charles Schwab||Individual||147,275||US$68.96|
|29 Apr 22||BuyUS$4,900,911||Walter Bettinger||Individual||72,911||US$68.16|
|27 Apr 22||BuyUS$297,567||Walter Bettinger||Individual||4,341||US$68.55|
|26 Apr 22||BuyUS$1,789,688||Walter Bettinger||Individual||26,108||US$68.55|
|25 Apr 22||BuyUS$2,545,960||Walter Bettinger||Individual||36,640||US$69.49|
|16 Mar 22||SellUS$270,957||Peter Crawford||Individual||3,114||US$87.01|
|22 Feb 22||SellUS$13,478,956||Charles Schwab||Individual||156,860||US$85.95|
|17 Feb 22||SellUS$5,036,936||Charles Schwab||Individual||58,140||US$86.63|
|10 Feb 22||SellUS$2,948,430||Charles Schwab||Individual||30,873||US$95.50|
|07 Feb 22||SellUS$11,043,873||Charles Schwab||Individual||119,280||US$92.59|
|03 Feb 22||SellUS$10,759,450||Charles Schwab||Individual||119,280||US$90.20|
|02 Feb 22||SellUS$10,832,737||Charles Schwab||Individual||120,700||US$89.75|
|31 Jan 22||SellUS$195,104||Peter Morgan||Individual||2,239||US$87.14|
|23 Nov 21||SellUS$4,038,365||Charles Schwab||Individual||49,100||US$82.25|
|22 Nov 21||SellUS$4,047,107||Charles Schwab||Individual||49,100||US$82.48|
|22 Nov 21||SellUS$103,299||Joan Dea||Individual||1,250||US$82.64|
|18 Nov 21||SellUS$4,021,413||Charles Schwab||Individual||49,100||US$81.92|
|16 Nov 21||SellUS$8,036,997||Charles Schwab||Individual||98,200||US$82.05|
|08 Nov 21||SellUS$3,789,967||Charles Schwab||Individual||46,473||US$81.75|
|05 Nov 21||SellUS$4,840,661||Charles Schwab||Individual||59,177||US$81.80|
|03 Nov 21||SellUS$5,056,286||Charles Schwab||Individual||61,150||US$82.69|
|01 Nov 21||SellUS$5,010,203||Charles Schwab||Individual||61,350||US$81.67|
|26 Oct 21||SellUS$8,062,394||Charles Schwab||Individual||96,302||US$83.72|
|25 Oct 21||SellUS$11,875,381||Charles Schwab||Individual||143,698||US$83.05|
|22 Oct 21||SellUS$917,134||Peter Crawford||Individual||11,000||US$83.38|
|20 Oct 21||SellUS$15,039,410||Charles Schwab||Individual||185,250||US$81.18|
|18 Oct 21||SellUS$1,044,376||Charles Schwab||Individual||13,000||US$80.34|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||666,986||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
The Charles Schwab Corporation's employee growth, exchange listings and data sources
- Name: The Charles Schwab Corporation
- Ticker: SCHW
- Exchange: NYSE
- Founded: 1971
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Implied Market Cap: US$137.785b
- Shares outstanding: 1.88b
- Website: https://www.schwab.com
Number of Employees
- The Charles Schwab Corporation
- 3000 Schwab Way
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SCHW||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 1987|
|SWG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 1987|
|SWG||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Sep 1987|
|SCHW *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Sep 1987|
|0L3I||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Sep 1987|
|SCHW||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Sep 1987|
|A1GZ40||DB (Deutsche Boerse AG)||PERP SUB GLBL -A||DE||USD||Jan 2012|
|SCHW.PRC||NYSE (New York Stock Exchange)||DEP SHS PFD C||US||USD||Jul 2015|
|SCHW.PRD||NYSE (New York Stock Exchange)||DEP SHS 1/40 PFD||US||USD||Mar 2016|
|SCHW34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REP 1 COM||BR||BRL||Apr 2016|
|A188UE||DB (Deutsche Boerse AG)||PERP SUB -E NT||DE||USD||Oct 2016|
|A28WNP||DB (Deutsche Boerse AG)||PERP SUB GLBL -G||DE||USD||Apr 2020|
|A3KNM1||DB (Deutsche Boerse AG)||4%-FRN SUB PERP USD1000 'I'||DE||USD||Mar 2021|
|SCHW.PRJ||NYSE (New York Stock Exchange)||4.450% DEP SHS REP 1/40TH N-CUM PFD SERJ||US||USD||Mar 2021|
|SWG0||DB (Deutsche Boerse AG)||4.450% DEP SHS REP 1/40TH N-CUM PFD SERJ||DE||EUR||Mar 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/03 00:00|
|End of Day Share Price||2022/10/03 00:00|
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.