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Charles Schwab (SCHW) Stock Analysis

This is a peer-relative look at Charles Schwab (SCHW): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Charles Schwab (SCHW)
Profile ItemSCHW
NameCharles Schwab Corporation
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryInvestment Banking & Brokerage
Market Capitalization192.11 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateSeptember 22, 1987
Security TypeCommon Stock

Price Performance

Cumulative Growth

SCHW
GSPC
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Charles Schwab (SCHW) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Charles Schwab (SCHW) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Charles Schwab (SCHW) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Total Return (1Y)15.06%-0.21%
Total Return (3Y, Annualized)23.29%11.28%
Total Return (5Y, Annualized)9.92%5.67%

Risk Profile

Drawdown History

SCHW
GSPC
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Charles Schwab (SCHW) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Charles Schwab (SCHW) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Volatility (1Y, Annualized)24.96%34.50%
Beta (5Y)0.761.03
Max Drawdown (5Y)-49.70%-49.70%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. SCHW is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Sharpe Ratio (1Y)0.44-0.13
Sortino Ratio (1Y)0.59-0.19

Profitability

ROE (TTM)

Charles Schwab (SCHW) posts ROE of 20.27%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

SCHW

Financial Services industry group

20.27%

Group distribution
Max
48.53%
Q3
22.22%
SCHW
20.27%
Median
12.75%
Q1
4.09%
Min
-22.61%
Largest peers
MA
241.20%
V
61.19%
SCHW
20.27%
MS
17.97%
GS
16.90%
BRK.B
12.12%
BRK.A
12.12%
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Where Charles Schwab (SCHW) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Charles Schwab (SCHW) keeps 38.79% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

SCHW

Financial Services industry group

38.79%

Group distribution
Max
66.61%
SCHW
38.79%
Q3
29.41%
Median
16.08%
Q1
4.44%
Min
-30.54%
Largest peers
V
50.78%
MA
46.34%
SCHW
38.79%
GS
31.04%
MS
25.90%
BRK.B
22.30%
BRK.A
22.30%
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Where Charles Schwab (SCHW) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Charles Schwab (SCHW) turns 52.28% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SCHW

Financial Services industry group

52.28%

Group distribution
Max
96.23%
Q3
53.97%
SCHW
52.28%
Median
28.94%
Q1
11.79%
Min
-46.79%
Largest peers
V
66.13%
MA
61.11%
SCHW
52.28%
GS
42.18%
MS
41.57%
BRK.B
32.56%
BRK.A
32.56%
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Where Charles Schwab (SCHW) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
ROE (TTM)20.27%12.75%
ROA (TTM)2.07%3.12%
Net Margin (TTM)38.79%16.08%
Operating Margin (TTM)52.28%28.94%
Gross Margin (TTM)----

Growth

Revenue Growth

Charles Schwab (SCHW) grew revenue 22.01%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Charles Schwab (SCHW): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Charles Schwab (SCHW) grew earnings per share 55.52%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Charles Schwab (SCHW): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Revenue Growth (YoY)22.01%9.11%
Revenue Growth (3Y CAGR)4.83%10.29%
EPS Growth (YoY)55.52%7.11%
EPS Growth (3Y CAGR)9.93%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Charles Schwab (SCHW) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Charles Schwab (SCHW) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Charles Schwab (SCHW) has dividend yield of 1.08%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

SCHW

Financial Services industry group

1.08%

Group distribution
Max
17.41%
Q3
7.19%
Median
1.49%
SCHW
1.08%
Q1
0.00%
Min
0.00%
Largest peers
MS
1.90%
GS
1.63%
SCHW
1.08%
V
0.73%
MA
0.59%
BRK.B
0.00%
BRK.A
0.00%
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Where Charles Schwab (SCHW) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Charles Schwab (SCHW) has payout ratio of 21.49%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

SCHW

Financial Services industry group

21.49%

Group distribution
Max
223.44%
Q3
89.87%
Median
25.19%
SCHW
21.49%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.31%
GS
26.25%
V
22.13%
SCHW
21.49%
MA
17.93%
BRK.B
0.00%
BRK.A
0.00%
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Where Charles Schwab (SCHW) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
Dividend Yield (TTM)1.08%1.49%
Dividend Payout Ratio (TTM)21.49%25.19%

Valuation

P/E Ratio (TTM)

Charles Schwab (SCHW) trades at P/E ratio of 20.23, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

SCHW

Financial Services industry group

20.23

Group distribution
Max
50.93
Q3
26.65
SCHW
20.23
Median
16.33
Q1
10.01
Min
2.15
Largest peers
MA
31.35
V
31.04
SCHW
20.23
MS
17.54
GS
16.05
BRK.A
12.77
BRK.B
12.75
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Where Charles Schwab (SCHW) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Charles Schwab (SCHW) trades at 7.38 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

SCHW

Financial Services industry group

7.38

Group distribution
Max
9.98
SCHW
7.38
Q3
4.93
Median
2.98
Q1
1.55
Min
-1.13
Largest peers
V
15.28
MA
14.21
SCHW
7.38
GS
4.48
MS
4.39
BRK.B
2.80
BRK.A
2.80
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Where Charles Schwab (SCHW) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Charles Schwab (SCHW) trades at 4.37 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

SCHW

Financial Services industry group

4.37

Group distribution
Max
7.91
SCHW
4.37
Q3
3.71
Median
1.60
Q1
0.85
Min
-0.34
Largest peers
MA
89.01
V
19.30
SCHW
4.37
MS
3.21
GS
2.84
BRK.A
1.45
BRK.B
0.00
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Where Charles Schwab (SCHW) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Charles Schwab (SCHW) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SCHWIndustry group median
P/E Ratio (TTM)20.2316.33
P/S Ratio (TTM)7.382.98
P/B Ratio (MRQ)4.371.60
Free Cash Flow Yield (TTM)----