The Company in a Nutshell
- Throughout the years, SCHW went from a small discount broker to a major player in wealth management.
- SCHW can growth through acquisitions (USAA’s portfolios have been bought for $1.8B in 2019).
- The company shows a strong will to increase its dividend in the upcoming years.
- We do not cover Charles Schwab at the moment.
Date Reviewed | N/A |
Company Name | Charles Schwab Corp |
Symbol | SCHW |
Sector | Financials |
Industry | Capital Markets |
Beta | 0.987 |
PRO Rating | 3 |
Dividend Safety | 3 |
Business Model
The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services, and retirement business services, to independent registered investment advisors, independent retirement advisors, and recordkeepers. Its products and services include brokerage, mutual funds, exchange-traded funds, advice solutions, alternative investments, banking and trust.
Current price | 74.59 |
ROE | 15.85 % |
ROIC | 0.00 % |
Shareholder Yield | 2.25 % |
5-Yr Total Return | 75.70 % |
1-Yr Total Return | 46.10 % |
Next Earnings Date | 07-16-24 |
Latest Quarter Information
What the CEO said:
Over the course of 2023, our commitment to clients was unwavering. Through an uneven environment with shifting views on the trajectory of the U.S. economy, persistent geopolitical unrest, and a temporary disruption within the regional banking sector, our “no trade-offs” value proposition continued to resonate with investors. Clients entrusted us with $306 billion in core net new assets during the year, including over $43 billion in December alone. This ongoing success with clients helped push total client assets to a record $8.52 trillion at year-end. Additionally, we welcomed 977 thousand new-to-firm retail households as well as 315 advisors-in-transition to Schwab.
What we say:
02-04-2024, For Q4, SCHW's revenue fell 19% Y/Y and net interest revenue declined by ~30%. SCHW gathered over $53B in core net new assets during the fourth quarter and total client assets were $8.52T (+21%) across 34.8M accounts at year-end. Bank deposits, however, declined 21% and interest expense increased YoY. SCHW incurred $67M in acquisition and integration-related costs during the quarter and transitioned ~90% of client assets and accounts with no significant disruptions to the Ameritrade integration. SCHW identified ~$500M in cost savings beyond the Ameritrade synergies and also reduced workforce by ~6% of staff.
Investment Thesis
We do not cover this company.
Dividend Triangle
5-Yr Rev. Growth | 13.20 % |
5-Yr EPS Growth | 0.70 % |
5-Yr Div Growth | 16.80 % |
Potential Risks
Debt/Equity | 8.50 |
Financial Debt to EBITDA (TTM) | 40.55 |
Current Ratio (Quarterly) | 0.00 |
Credit Score | 30 |
Dividend Growth Perspective
Dividend ($) | 1 |
Dividend Yield Fwd | 1.35 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.20 % |
Payout Ratio (%) | 39.55 |
Cash Payout Ratio (%) | 12.05 |
DGR 1-Yr | 0.00 |
DGR 3-Yr | 11.55 |
DGR 5-Yr | 16.80 |
DGR Streak | |
Chowder Score | 18.15 |
Next DVD PMT | 05-24-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 132 B |
PE Ratio | 29.20 |
Fwd PE | 19.80 |
Price to Book Ratio | 3.35 |
DDM Valuation | N/A |
Average 5-Yr PE | 21.99 |
Value Score | 30 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.