Charles Schwab logged a 2.7% change during today's afternoon session, and is now trading at a price of $90.17 per share.
Over the last year, Charles Schwab logged a 1.9% change, with its stock price reaching a high of $107.5 and a low of $85.11. Over the same period, the stock underperformed the S&P 500 index by -24.1%. AThe company's 50-day average price was $93.3. The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. Based in Westlake, TX, the Large-Cap Finance company has 33,500 full time employees. Charles Schwab has offered a 1.3% dividend yield over the last 12 months.
Generally Positive Cash Flows but Growing Revenues:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $11,691 | $18,520 | $20,762 | $18,837 | $19,606 | $23,921 |
| Interest Income (M) | $6,113 | $8,030 | $10,682 | $9,427 | $9,144 | $11,750 |
| Operating Margins | 37% | 42% | 45% | 34% | 39% | 48% |
| Net Margins | 28% | 32% | 35% | 27% | 30% | 37% |
| Net Income (M) | $3,299 | $5,855 | $7,183 | $5,067 | $5,942 | $8,852 |
| Depreciation & Amort. (M) | $414 | $549 | $652 | $804 | $519 | $512 |
| Diluted Shares (M) | 1,855 | 1,897 | 1,894 | 1,831 | 1,834 | 1,809 |
| Earnings Per Share | $2.12 | $2.83 | $3.5 | $2.54 | $2.99 | $4.65 |
| EPS Growth | n/a | 33.49% | 23.67% | -27.43% | 17.72% | 55.52% |
| Avg. Price | $37.97 | $69.39 | $76.58 | $68.8 | $73.73 | $87.83 |
| P/E Ratio | 17.83 | 24.43 | 21.76 | 26.98 | 24.58 | 18.81 |
| Free Cash Flow (M) | $6,221 | $1,202 | $1,086 | $18,887 | $2,050 | $8,763 |
| CAPEX (M) | $631 | $916 | $971 | $700 | $620 | $548 |
| EV / EBITDA | 4.69 | 10.48 | 12.52 | 15.25 | 13.99 | 11.32 |
| Total Debt (M) | $13,632 | $18,914 | $20,828 | $26,128 | $22,428 | $22,199 |
| Net Debt / EBITDA | -5.67 | -5.33 | -1.93 | -2.4 | -2.39 | -1.99 |
Charles Schwab has strong operating margins with a stable trend and generally positive cash flows. Additionally, the company's financial statements display low leverage levels and a strong EPS growth trend. Furthermore, Charles Schwab has growing revenues and decreasing reinvestment in the business.
Forward Earnings Expected to Increase but Priced at a Premium:
Charles Schwab has a trailing twelve month P/E ratio of 18.5, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $6.99, the company has a forward P/E ratio of 13.3. According to the 18.6% compound average growth rate of Charles Schwab's historical and projected earnings per share, the company's PEG ratio is 1.0. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 13.1%. On this basis, the company's PEG ratio is 1.41. This implies that the shares are fairly valued. In contrast, Charles Schwab is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.2 is higher than the sector average of 1.78. The company's shares are currently trading 68.6% below their Graham number.
Charles Schwab Has No Average Rating:
Charles Schwab has a very low short interest because 0.0% of the company's shares are sold short. Institutions own 85.7% of the company's shares, and the insider ownership rate stands at 6.17%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 8% stake in the company is worth $12,097,242,785.
