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SCHW

SCHWAB CHARLES CORP

Financials • CIK: 0000316709

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Market Cap
$173.54B
P/E (TTM)
22.3x
Rev Growth (TTM)
+22.3%
Net Margin (TTM)
33.9%
FCF Yield (TTM)
-0.8%
FCF Margin (TTM)
-6.1%

LATEST EARNINGS

Q4 FY2025
about 1 month ago
View source
Revenue
$6.34B
+19.0%
Net Income
$2.46B
+34.0%
EPS
$1.33
+41.5%
Operating
50.2% +6.9%
  • Record 4Q net revenues of $6.3 billion, up 19% year-over-year.
  • Full-year 2025 net revenues reached a record $23.9 billion, up 22% year-over-year.
  • Record 4Q core net new assets of $163.9 billion, bringing full-year asset gathering to $519.4 billion, up 42% year-over-year.
  • Total client assets increased 18% year-over-year to a record $11.90 trillion.

Cash Flow Health

Free Cash Flow5/8 positive
TTM$-1.4B
Q3 '25
$393M-87%
Q2 '25
$3.0B-51%
FCF Margin
TTM-6.1%
Q3 '256.4%-88%
Sector: 21.9%Below Avg
OCF Margin-3.3%
OCF/NI-0.10x
CapEx Coverage-1.2x
FCF Yield-0.8%
FCF Growth (2Y)
Cash Conversion Cycle
0 days
DSO: 0+DIO: DPO:

Capital Allocation & Returns

Growth Focused
Total Shareholder Yield
TTM1.1%
Div Yield1.1%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.1%
Free Cash Flow (TTM)$-1.4B
Stock Repurchases ()$0
Capital Return / FCF-167.5%
Est. Dividends Paid (TTM)$1.9B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
35.8%
Moderate
+0.7% YoY+23.7%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
35.9%
8Q: 31.6%
Asset Turnover
0.05x
8Q: 0.04x
Leverage (1+D/E)
1.43x
D/E: 0.43x
DuPont: 2.5%35.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.02x
8Q:6.05x
+296.9%
Invested Cap Turn
1.00x
8Q:0.87x
+35.6%
CapEx Intensity
2.8%
8Q:2.2%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$22.9B
$6.1B4.9%
$5.9B4.5%
$5.6B5.1%
$5.3B9.9%
$4.8B3.3%
$4.7B1.1%
$4.7B6.3%
$4.5B
Operating Income
$10.6B
$3.0B7.8%
$2.8B14.2%
$2.5B6.5%
$2.3B25.1%
$1.8B5.4%
$1.7B2.8%
$1.8B50.6%
$1.2B
Net Income
$7.8B
$2.3B15.2%
$2.0B10.1%
$1.8B4.6%
$1.7B32.2%
$1.3B7.3%
$1.2B3.2%
$1.3B35.1%
$926.0M
Operating Cash Flow
$-753.0M
$538.0M83.1%
$3.2B50.0%
$6.4B158.7%
$-10.8B156.7%
$19.1B549.2%
$-4.3B215.2%
$-1.3B106.7%
$20.0B
Free Cash Flow
$-1.4B
$393.0M87.1%
$3.0B51.2%
$6.2B156.3%
$-11.1B158.4%
$19.0B537.0%
$-4.3B189.8%
$-1.5B107.5%
$20.0B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
22.3x
Volatile
8Q: 87.5x-5249%
Valuation Lenses
Earnings
22.3x
vs sector
Cash Flow
27.8x
EV/FCF vs
Growth-Adj
0.3xPEG
Undervalued for growth
Quality-Adj
0.6P/E per %ROIC
ROIC: 35.8%
Shareholder Returns
Dividend
1.1%
Buyback
Total Yield
1.1%
Market Cap$173.54B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
57/100
Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
15.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
35.8%
8Q:
+23.7%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 35.9%
Asset Turnover: 0.05x

Earnings Quality

Cash Conversion

-0.10x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin100.0%

Capital Efficiency

Invested Capital Turnover1.00x

Working Capital

Cash Conversion Cycle0 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
70/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
22.3%
OpInc Growth YoY
64.0%
EPS Growth YoY
66.8%
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
100.0%
Operating
46.2%
Top 25% in sector
Net
33.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-40.0 pts
FCF: -6.1% | Net: 33.9%
FCF margin lags net margin by 40.0 pts

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $33.87B
Interest Coverage
+Net cash position: $33.87B
Leverage Metrics
Debt-to-Equity
0.43x
Balance sheet risk & solvency analysis