Schwab Charles Corp (SCHW)
Financials · Investment Banking & Brokerage · US stock · S&P 500 component
$91.44
▼ -0.20 (0.22%)
Fair valueUndervalued
$117 +28.5% to fair value
$59fair band $100–$142$176
Day's range
$91.06 – $92.44
52-week range
$83.96 – $114.53
About Schwab Charles Corp
Charles Schwab is a brokerage and banking firm that provides investment accounts, trading, retirement services, banking and wealth management to individual investors and independent advisors. It earns money mainly from net interest revenue on client cash and loans, from asset management fees, and from trading and related services. Client assets and interest rate levels are significant drivers of results.
Looking at the top line, revenue was $26.0 billion for the latest twelve months and it grew by 4.8% a year over three years. Operating margin was 50.2%, and return on invested capital is 31%. Shareholders receive a dividend with a yield of 1.3%. The overall X-Ray Score is 68 out of 100.
Price chart
52-wk range $83.96 – $114.53Volume 8,775,167Daily, split-adjusted
Vitals
Market cap$159.0B
52-week range$83.96 – $114.53
Volume (last day)8,775,167
P/E (TTM)129.7
EBIT / EV yield9.3%
Free-cash-flow yield6.8%
Dividend yield1.3%
Revenue (TTM)$26.0B
Net income (TTM)$1.3B
Operating margin50.2%
Return on capital31.3%
Debt incl. leases$22.7B
Cash & securities$40.6B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$117middle half of models $108 – $120
Undervalued
+28.5% to fair value
Average of the 5 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $91
Undervalued < $100Fair $100 – $142Overvalued > $142
P/E multiple
$108
P/B multiple
$89
P/S multiple
$119
Dividend discount, stable
$120
Dividend discount, multi-stage
$152
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Strong business at an attractive price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Financials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
72/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.3%
Free-cash-flow yield6.8%
Fair value vs price1.3×
Growth
Fair
59/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)4.8%
EPS growth (3y)9.9%
Growth consistency90%
Profitability
Fair
70/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital31.3%
Operating margin50.2%
Financial health
Strong
78/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA-1.4×
Interest coverNo interest cost
Dividends
Fair
50/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.3%
Dividends vs free cash flow20%
Dividend growth3.3%
Quarterly results: last 6 quarters
+18.1%
Mar '25
+24.8%
Jun '25
+26.6%
Sep '25
+18.9%
Dec '25
+15.8%
Mar '26
+20.9%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $7.1B, diluted EPS $1.54.
Compare with peers
RJF Raymond James Financia...55 IBKR Interactive Brokers Gr...51 GS Goldman Sachs Group In...49 HOOD Robinhood Markets, Inc...45Other Investment Banking & Brokerage companies by X-Ray Score.
SWOT analysis: Schwab Charles Corp
Strengthsinside the company
- Return on invested capital is 31.3%, against a median of 13.4% for industry peers.
- Operating margin of 50.2% is well above the 28.9% median of industry peers, a sign of pricing power or lower costs.
- Free cash flow equals 6.8% of the market value, which funds dividends, buybacks or debt paydown.
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Revenue growth picked up to 22.0% last year from 4.8% a year over three years.
- Dividends use only 20% of free cash flow, which leaves room to raise them.
- The price is 29% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Financials as favourable.
Threatsvaluation and setting
- Trades at 126.9x earnings, 832% above the 13.6x median of industry peers, so the price already assumes better results.
- The price trend is down on the daily and weekly signals.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare SCHW with peers and sector
Medians of 5 Investment Banking & Brokerage peers and of 70 Financials stocks in our universe.
Largest peers (X-Ray Score): MS 34, GS 49, HOOD 45, IBKR 51, RJF 55.
| Metric | SCHW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 68 | 49 | 50 |
| Valuation | 72 | 32 | 52 |
| Growth | 59 | 72 | 54 |
| Profitability | 70 | 39 | 48 |
| Financial health | 78 | 42 | 50 |
| Dividends | 50 | 62 | 54 |
Sector leaders: highest X-Ray Score in Financials
SCHW ranks #2 of 71 in Financials and #1 of 6 in Investment Banking & Brokerage by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for SCHW
Each factor is rated by where SCHW stands among the 71 Financials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 1 Good · 1 Average · 6 Bad of 8
Growth: 1 · 1 · 1
Profitability: 0 · 0 · 2
Valuation: 0 · 0 · 3
| Factor | SCHW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +4.8% | Bad beats 30% | +8.3% | – | – |
| Revenue growth, last year | +22.0% | Good beats 90% | +6.9% | +12.1% | ▲ Better |
| EPS growth, 3 years a year | +9.9% | Average beats 36% | +12.7% | – | – |
| Profitability | |||||
| Net margin | 4.8% | Bad beats 8% | 21.8% | 0.0% | ▲ Better |
| Return on equity | 2.5% | Bad beats 6% | 15.7% | 0.0% | ▲ Better |
| Valuation | |||||
| P/E ratio | 126.9x | Bad beats 2% | 13.8x | 22,843.2x | ▲ Better |
| Price / book | 3.2x | Bad beats 31% | 2.2x | 3.1x | ≈ In line |
| Price / sales | 6.1x | Bad beats 25% | 3.1x | 7.6x | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings), and banks and insurers are rated only on the factors that apply to them. A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 8 Good · ● 4 Average · ● 1 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldAverage
Risk models
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Good
Revenue growth (3y)Bad
Growth consistencyAverage
Balance sheet
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Each check is graded against the company's sector, not a fixed number. Checklist score 71/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $18.5B | $20.8B | $18.8B | $19.6B | $23.9B |
| Operating income | $8.2B | $10.9B | $13.1B | $7.7B | $11.5B |
| Net income | $6M | $7M | $5M | $6M | $9M |
| Operating cash flow | $2.1B | $2.1B | $19.6B | $2.7B | $9.3B |
| Operating margin | 44.2% | 52.7% | 69.3% | 39.2% | 47.9% |
| Free cash flow | $1.2B | $1.1B | $18.9B | $2.1B | $8.8B |
| Diluted EPS | $2.83 | $3.50 | $2.54 | $2.99 | $4.65 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
1 bullish · 3 neutral · 12 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 93.62 | Bearish |
| EMA 10 | 93.18 | Bearish |
| SMA 20 | 95.63 | Bearish |
| EMA 20 | 95.68 | Bearish |
| SMA 50 | 103.1 | Bearish |
| EMA 50 | 99.46 | Bearish |
| SMA 100 | 100.5 | Bearish |
| EMA 100 | 99.69 | Bearish |
| SMA 200 | 97.52 | Bearish |
| EMA 200 | 97.65 | Bearish |
Oscillators (daily)
| RSI (14) | 32.14 | Neutral |
| MACD (12, 26) | -3.19 | Bearish |
| Momentum (12) | -5.54 | Bearish |
| Stochastic %K (14) | 22.33 | Neutral |
| Williams %R (14) | -77.67 | Neutral |
| CCI (20) | -112.9 | Bullish |
Pivot points (classic, last session)
S3 89.47 | S2 90.27 | S1 90.85 | Pivot 91.65 | R1 92.23 | R2 93.03 | R3 93.61 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.23 USD
Yield on today's price
1.35%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.3200 | |
| 0.3200 | |
| 0.3200 | |
| 0.2700 | |
| 0.2700 | |
| 0.2700 | |
| 0.2700 | |
| 0.2500 | |
| 0.2500 | |
| 0.2500 | |
| 0.2500 | |
| 0.2500 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold SCHW
| ETF | Share of the fund |
|---|---|
| IYF iShares U.S. Financials | 2.62% |
| MOAT VanEck Morningstar Wide Moat | 2.45% |
| FTCS First Trust Capital Strength | 2.01% |
| XLF Financial Select Sector SPDR | 1.99% |
| VFH Vanguard Financials | 1.77% |
| PWB Invesco Dynamic Large Cap Growth | 1.73% |
| JAVA JPMorgan Active Value | 1.42% |
| VALQ American Century STOXX U.S. Quality Va... | 1.12% |
The eight funds with the largest weight in SCHW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
SCHW stock splits
SCHW has split its stock 8 times since 1991. The latest was a 3-for-2 split on 31 May 2000.
Full SCHW stock split history →SCHW SEC filings
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Other events
424B5SEC EDGAR
424B5
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.