SCHW Stock Analysis: Charles Schwab | NYSE
Capital Markets | NYSE, USA | Market Cap: 176.714m USD | 12M Return: 7.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 902M
EPS Trend: 87.3%
Qual. Beats: 2
Rev. Trend: 87.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Charles Schwab Corporation is a U.S.-headquartered savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to retail and institutional clients, both domestically and internationally. Founded in 1971 and based in Westlake, Texas, the company operates in two segments-Investor Services and Advisor Services-serving clients through branch offices as well as digital and software-based trading platforms.
Its product set spans brokerage and trading (equities, fixed income, options, futures, forex, margin lending, ETFs, and third-party mutual funds through the Mutual Fund Marketplace and OneSource), advisory solutions (managed portfolios, separately managed accounts, and tailored financial planning), and a banking platform that includes checking, savings, CDs, residential mortgages, home equity lines of credit, and pledged asset lines. Schwab also offers trust and custody services, equity compensation plan recordkeeping, retirement plan services, and mutual fund clearing for broker-dealers, along with interactive tools and educational content for financial advisors.
As a large-cap Financials name in the Investment Banking & Brokerage sub-industry, Schwab operates a primarily asset-gathering business model, earning revenue from management and administrative fees on client assets, net interest income on client cash balances and margin lending, and trading and bank deposit account fees. The companys scale across brokerage, banking, and custody services-combined with a large advisor channel-makes it a major participant in the U.S. retail wealth management and registered investment advisor (RIA) custody markets.
- Net interest margin compresses as Fed cuts rates
- Client assets under management track equity market levels and net new accounts
- Cash sweep deposits face competition from high-yielding money market funds
| Net Income: 10.1b TTM > 0 and > 6% of Revenue |
| FCF/TA: 2.50 > 0.02 and ΔFCF/TA 248.3 > 1.0 |
| NWC/Revenue: -47.85% < 20% (prev -719.2%; Δ 671.3% < -1%) |
| CFO/TA 2.65 > 3% & CFO 10.3b > Net Income 10.1b |
| Net Debt (21.7b) to EBITDA (14.4b): 1.50 < 3 |
| Current Ratio: 0.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.74b) vs 12m ago -4.56% < -2% |
| Gross Margin: 86.67% > 18% (prev 81.09%; Δ 5.58% > 0.5%) |
| Asset Turnover: 12.98% > 50% (prev 5.81%; Δ 7.16% > 0%) |
| Interest Coverage Ratio: 4.12 > 6 (EBIT TTM 13.1b / Interest Expense TTM 3.17b) |
| A: -3.70 (Total Current Assets 636.0m - Total Current Liabilities 15.0b) / Total Assets 3.88b |
| B: 11.35 (Retained Earnings 44.1b / Total Assets 3.88b) |
| C: 0.06 (EBIT TTM 13.1b / Avg Total Assets 231b) |
| D: 3.92 (Book Value of Equity 3.09b / Total Liabilities 789.0m) |
| Altman-Z'' = 17.22 = AAA |
| DSRI: 1.48 (Receivables 145b/87.1b, Revenue 30.0b/26.7b) |
| GMI: 0.94 (GM 81.09% / 86.67%) |
| AQI: -0.24 (AQ_t -0.14 / AQ_t-1 0.59) |
| SGI: 1.13 (Revenue 30.0b / 26.7b) |
| TATA: -0.05 (NI 10.1b - CFO 10.3b) / TA 3.88b) |
| Beneish M = -3.34 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 104.18 with a total of 5,332,647 shares traded. Over the past week, the price has changed by +1.60%, over one month by +15.05%, over three months by +15.20% and over the past year by +7.75%.
Current recommended Stop Loss: 98.00 (which is 5.9% or 2.6 ATR below the current price).
Charles Schwab has received a consensus analysts rating of 4.14. Therefore, it is recommended to buy SCHW.
- StrongBuy: 10
- Buy: 7
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 123.7 | 18.7% |
P/E Trailing = 18.3412
P/E Forward = 16.3666
P/S = 6.7901
P/B = 3.4991
P/EG = 1.2032
Revenue TTM = 30.0b USD
EBIT TTM = 13.1b USD
EBITDA TTM = 14.4b USD
Long Term Debt = 22.2b USD (from longTermDebt, last fiscal year)
Short Term Debt = 111.0m USD (from shortTermDebt, last quarter)
Debt = 22.3b USD (corrected: LT Debt 22.2b + ST Debt 111.0m) + Leases 30.0m
Net Debt = 21.7b USD (calculated: Debt 22.3b - CCE 636.0m)
Enterprise Value = 198b USD (177b + Debt 22.3b - CCE 636.0m)
Interest Coverage Ratio = 4.12 (Ebit TTM 13.1b / Interest Expense TTM 3.17b)
EV/FCF = 20.40x (Enterprise Value 198b / FCF TTM 9.72b)
FCF Yield = 4.90% (FCF TTM 9.72b / Enterprise Value 198b)
FCF Margin = 32.38% (FCF TTM 9.72b / Revenue TTM 30.0b)
Net Margin = 33.62% (Net Income TTM 10.1b / Revenue TTM 30.0b)
Gross Margin = 86.67% ((Revenue TTM 30.0b - Cost of Revenue TTM 4.00b) / Revenue TTM)
Gross Margin QoQ = 83.02% (prev 88.79%)
Tobins Q-Ratio = 51.10 (set to none) (Enterprise Value 198b / Total Assets 3.88b)
Interest Expense / Debt = 14.23% (Interest Expense 3.17b / Debt 22.3b)
Taxrate = 22.68% (2.96b / 13.1b)
NOPAT = 10.1b (EBIT 13.1b * (1 - 22.68%))
Current Ratio = 0.04 (Total Current Assets 636.0m / Total Current Liabilities 15.0b)
Debt / Equity = 7.21 (Debt 22.3b / totalStockholderEquity, last quarter 3.09b)
Debt / EBITDA = 1.50 (Net Debt 21.7b / EBITDA 14.4b)
Debt / FCF = 2.23 (Net Debt 21.7b / FCF TTM 9.72b)
Total Stockholder Equity = 37.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.36% (Net Income 10.1b / Total Assets 3.88b)
RoE = 26.72% (Net Income TTM 10.1b / Total Stockholder Equity 37.8b)
RoCE = 21.79% (EBIT 13.1b / Capital Employed (Equity 37.8b + L.T.Debt 22.2b))
RoIC = 311.0% (NOPAT 10.1b / Invested Capital 3.25b)
WACC = 8.99% (E(177b)/V(199b) * Re(8.74%) + D(22.3b)/V(199b) * Rd(14.23%) * (1-Tc(0.23)))
Discount Rate = 8.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.01 | Cagr: -2.27%
[DCF] Terminal Value 73.11% ; FCFF base≈9.75b ; Y1≈9.73b ; Y5≈10.2b
[DCF] Fair Price = 69.83 (EV 143b - Net Debt 21.7b = Equity 121b / Shares 1.74b; r=8.99% [WACC]; 5y FCF grow -0.68% → 2.50% )
EPS Correlation: 87.25 | EPS CAGR: 26.48% | SUE: 2.85 | # QB: 2
Revenue Correlation: 87.91 | Revenue CAGR: 7.99% | SUE: 0.82 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.67 | Chg30d=+6.21% | Revisions=+40% | Analysts=16
EPS current Year (2026-12-31): EPS=6.48 | Chg30d=+5.29% | Revisions=+40% | GrowthEPS=+33.2% | GrowthRev=+18.0%
EPS next Year (2027-12-31): EPS=7.69 | Chg30d=+5.91% | Revisions=+40% | GrowthEPS=+18.5% | GrowthRev=+10.2%
[Analyst] Revisions Ratio: +67% (up=6, down=0)