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Charles Schwab Corp SCHW

Morningstar Rating
$64.63 +0.50 (0.78%)
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Company Report

Charles Schwab Earnings: Revenue Growth in 2024 Uncertain, but Long-Term Outlook Bright

Revenue growth for Charles Schwab in 2024 is less certain due to expectations for falling interest rates, but the company's business model and longer-term trends still paint a bright picture. During 2023, Schwab reported net income to common shareholders of $4.6 billion, or $2.54 per diluted share, on $18.8 billion of net revenue. On an adjusted basis, which excludes nearly $1.5 billion of restructuring and acquisition-related costs, earnings per share was $3.13. Net revenue decreased 9%, primarily due to a nearly $2 billion decline in net interest income and bank deposit account fees.

Price vs Fair Value

SCHW is trading at a 19% discount.
Price
$64.63
Fair Value
$22.00
Uncertainty
High
1-Star Price
$863.00
5-Star Price
$99.00
Economic Moat
Wgsf
Capital Allocation
Nqwncfttf

Bulls Say, Bears Say

Bulls

Charles Schwab is solidifying its position as a leader in investment services and may be able to expand into other financial services.

Bears

A loss of deposits and higher funding costs are potential near-term negatives for the firm.

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News

Trading Information

Previous Close Price
$64.13
Day Range
$64.3465.19
52-Week Range
$45.0081.32
Bid/Ask
$64.48 / $65.89
Market Cap
$117.79 Bil
Volume/Avg
1 / 9.5 Mil

Key Statistics

Price/Earnings (Normalized)
17.91
Price/Sales
6.13
Dividend Yield (Trailing)
1.55%
Dividend Yield (Forward)
1.55%
Total Yield
5.61%

Company Profile

Charles Schwab operates in brokerage, wealth management, banking, and asset-management businesses. The company runs a large network of brick-and-mortar brokerage branch offices, a well-established online investing website, and has mobile trading capabilities. It also operates a bank and a proprietary asset management business and offers services to independent investment advisors. The company is among the largest firms in the investment business, with over $7 trillion of client assets at the end of December 2022. Nearly all of its revenue is from the United States.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Large Core
Total Number of Employees
36,000

Competitors

Valuation

Metric
SCHW
IBKR
MS
Price/Earnings (Normalized)
17.9118.3114.26
Price/Book Value
4.013.021.52
Price/Sales
6.131.372.73
Price/Cash Flow
12.863.658.83
Price/Earnings
SCHW
IBKR
MS

Financial Strength

Metric
SCHW
IBKR
MS
Quick Ratio
0.51
Current Ratio
1.12
Interest Coverage
1.98
Quick Ratio
SCHW
IBKR
MS

Profitability

Metric
SCHW
IBKR
MS
Return on Assets (Normalized)
1.23%0.49%0.97%
Return on Equity (Normalized)
23.65%19.21%12.60%
Return on Invested Capital (Normalized)
15.16%
Return on Assets
SCHW
IBKR
MS
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