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19.06 (1y: +51%)
Market Cap 24.54 B P/E(ttm) 27.80
Enterprise Value 27.03 B P/B 2.60
SCHW- NYSE (USA)
Charles Schwab Corp
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$19.06
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GuruFocus Financial Strength Rank measures how strong a companyÂ’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 7.759
SCHW's Cash to Debt is ranked higher than
51% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2100.97 vs. SCHW: 7.759 )
SCHW' s 10-Year Cash to Debt Range
Min: 1.6   Max: 17.6
Current: 7.76
1.6
17.6
Equity to Asset 0.057
SCHW's Equity to Asset is ranked lower than
82% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.24 vs. SCHW: 0.057 )
SCHW' s 10-Year Equity to Asset Range
Min: 0.06   Max: 0.1
Current: 0.06
0.06
0.1
Interest Coverage No Debt
SCHW's Interest Coverage is ranked lower than
56% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 10000.00 vs. SCHW: No Debt )
SCHW' s 10-Year Interest Coverage Range
Min: No Debt   Max: No Debt
Current: No Debt
F-Score: 4
Z-Score: 0.33
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyÂ’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry		 vs
history
Operating margin (%) 29.60
SCHW's Operating margin (%) is ranked higher than
74% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 16.70 vs. SCHW: 29.60 )
SCHW' s 10-Year Operating margin (%) Range
Min: 3.1   Max: 39.4
Current: 29.6
3.1
39.4
Net-margin (%) 18.9
SCHW's Net-margin (%) is ranked higher than
72% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.55 vs. SCHW: 18.9 )
SCHW' s 10-Year Net-margin (%) Range
Min: 2.6   Max: 48.2
Current: 18.9
2.6
48.2
ROE (%) 9.7
SCHW's ROE (%) is ranked higher than
77% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 4.60 vs. SCHW: 9.7 )
SCHW' s 10-Year ROE (%) Range
Min: 2.7   Max: 64.5
Current: 9.7
2.7
64.5
ROA (%) 0.7
SCHW's ROA (%) is ranked lower than
53% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.20 vs. SCHW: 0.7 )
SCHW' s 10-Year ROA (%) Range
Min: 0.3   Max: 5.7
Current: 0.7
0.3
5.7
Revenue Growth (%) 1.3
SCHW's Revenue Growth (%) is ranked higher than
66% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.90 vs. SCHW: 1.3 )
SCHW' s 10-Year Revenue Growth (%) Range
Min: -7.6   Max: 7.3
Current: 1.3
-7.6
7.3
EBITDA Growth (%) 1
SCHW's EBITDA Growth (%) is ranked higher than
73% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -1.85 vs. SCHW: 1 )
SCHW' s 10-Year EBITDA Growth (%) Range
Min: -21.9   Max: 31
Current: 1
-21.9
31
EPS Growth (%) 0.4
SCHW's EPS Growth (%) is ranked higher than
68% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -2.95 vs. SCHW: 0.4 )
SCHW' s 10-Year EPS Growth (%) Range
Min: -35.7   Max: 75
Current: 0.4
-35.7
75
» SCHW's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

SCHW Guru Trades in Q2 2012

RS Investment Management 1,270,100 sh (New)
Jeremy Grantham 217,300 sh (New)
Diamond Hill Capital 5,923,696 sh (New)
Jim Simons 2,984,700 sh (+128.1%)
David Rolfe 4,568,994 sh (+13.34%)
PRIMECAP Management 70,566,106 sh (+9.19%)
Dodge & Cox 87,472,818 sh (+1.05%)
Tom Gayner 993,900 sh (+0.99%)
Jean-Marie Eveillard 900 sh (unchged)
James Barrow 1,157,900 sh (unchged)
Lou Simpson 5,645,800 sh (unchged)
Robert Olstein 585,000 sh (unchged)
Paul Tudor Jones Sold Out
Ray Dalio Sold Out
Steven Cohen Sold Out
Frank Sands Sold Out
Chris Davis 19,158,379 sh (-0.19%)
Ron Baron 10,542,082 sh (-2.35%)
Mario Gabelli 279,800 sh (-2.95%)
Manning & Napier Advisors, Inc 9,624,838 sh (-15.33%)
» More
Q3 2012

SCHW Guru Trades in Q3 2012

Paul Tudor Jones 21,600 sh (New)
John Burbank 10,963 sh (New)
Ray Dalio 31,241 sh (New)
Glenn Greenberg 5,886,406 sh (New)
Steven Cohen 59,543 sh (New)
RS Investment Management 1,609,900 sh (+26.75%)
David Rolfe 5,225,011 sh (+14.36%)
Lou Simpson 6,416,346 sh (+13.65%)
Diamond Hill Capital 6,187,477 sh (+4.45%)
Tom Gayner 1,017,705 sh (+2.4%)
Jeremy Grantham 218,300 sh (+0.46%)
James Barrow 1,157,900 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Jim Simons Sold Out
PRIMECAP Management 70,344,712 sh (-0.31%)
Chris Davis 19,035,685 sh (-0.64%)
Dodge & Cox 86,420,688 sh (-1.2%)
Robert Olstein 560,000 sh (-4.27%)
Mario Gabelli 265,300 sh (-5.18%)
Ron Baron 9,133,262 sh (-13.36%)
Manning & Napier Advisors, Inc 26,880 sh (-99.72%)
» More
Q4 2012

SCHW Guru Trades in Q4 2012

Ray Dalio 166,541 sh (+433.08%)
Steven Cohen 299,637 sh (+403.23%)
Diamond Hill Capital 8,686,336 sh (+40.39%)
David Rolfe 6,887,034 sh (+31.81%)
Glenn Greenberg 7,154,731 sh (+21.55%)
James Barrow 1,314,000 sh (+13.48%)
Dodge & Cox 95,740,658 sh (+10.78%)
Lou Simpson 6,528,961 sh (+1.76%)
RS Investment Management 1,620,800 sh (+0.68%)
PRIMECAP Management 70,465,812 sh (+0.17%)
Jeremy Grantham 266,300 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Robert Olstein 560,000 sh (unchged)
Paul Tudor Jones Sold Out
John Burbank Sold Out
Manning & Napier Advisors, Inc Sold Out
Mario Gabelli 265,000 sh (-0.11%)
Tom Gayner 1,012,509 sh (-0.51%)
Ron Baron 8,884,565 sh (-2.72%)
Chris Davis 18,080,824 sh (-5.02%)
» More
Q1 2013

SCHW Guru Trades in Q1 2013

John Burbank 1,153,980 sh (New)
Ray Dalio 205,141 sh (+23.18%)
Glenn Greenberg 8,755,849 sh (+22.38%)
Lou Simpson 7,301,813 sh (+11.84%)
Chris Davis 19,572,147 sh (+8.25%)
Jeremy Grantham 283,400 sh (+6.42%)
Ron Baron 9,217,809 sh (+3.75%)
Tom Gayner 1,041,113 sh (+2.83%)
James Barrow 1,334,700 sh (+1.58%)
Jean-Marie Eveillard 900 sh (unchged)
Steven Cohen Sold Out
RS Investment Management 1,606,500 sh (-0.88%)
Dodge & Cox 94,347,657 sh (-1.45%)
PRIMECAP Management 68,007,465 sh (-3.49%)
Diamond Hill Capital 8,100,549 sh (-6.74%)
Mario Gabelli 245,000 sh (-7.55%)
David Rolfe 6,267,418 sh (-9%)
Robert Olstein 400,000 sh (-28.57%)
» More
» Details

Insider Trades

Latest Guru Trades with SCHW

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Glenn Greenberg 2013-03-31 Add 22.38%1.5%$14.36 - $18.11 $ 19.0615%8755849
Lou Simpson 2013-03-31 Add 11.84%0.86%$14.36 - $18.11 $ 19.0615%7301813
John Burbank 2013-03-31 New Buy0.81%$14.36 - $18.11 $ 19.0615%1153980
Ray Dalio 2013-03-31 Add 23.18%0.01%$14.36 - $18.11 $ 19.0615%205141
Glenn Greenberg 2012-12-31 Add 21.55%1.1%$12.5 - $14.47 $ 19.0643%7154731
Dodge & Cox 2012-12-31 Add 10.78%0.18%$12.5 - $14.47 $ 19.0643%95740658
Lou Simpson 2012-12-31 Add 1.76%0.13%$12.5 - $14.47 $ 19.0643%6528961
Ray Dalio 2012-12-31 Add 433.08%0.02%$12.5 - $14.47 $ 19.0643%166541
John Burbank 2012-12-31 Sold Out 0.01%$12.5 - $14.47 $ 19.0643%0
Glenn Greenberg 2012-09-30 New Buy4.7%$12.14 - $14.43 $ 19.0646%5886406
Lou Simpson 2012-09-30 Add 13.65%0.84%$12.14 - $14.43 $ 19.0646%6416346
John Burbank 2012-09-30 New Buy0.01%$12.14 - $14.43 $ 19.0646%10963
Ray Dalio 2012-09-30 New Buy0.01%$12.14 - $14.43 $ 19.0646%31241
Frank Sands 2012-06-30 Sold Out 0.5%$11.89 - $14.61 $ 19.0645%0
PRIMECAP Management 2012-06-30 Add 9.19%0.13%$11.89 - $14.61 $ 19.0645%70566106
Ray Dalio 2012-06-30 Sold Out 0.0035%$11.89 - $14.61 $ 19.0645%0
Premium More recent guru trades are included for Premium Members only!!

Preferred stocks of Charles Schwab Corp

SymbolPriceYieldDescription
SCHWPRB8.625.49Deposit Shs Repr 6% Non-Cum Perp Pfd Shs Series -B-

Guru Investment Theses on Charles Schwab Corp

David Rolfe of Wedgewood Partners Comments on Charles Schwab - Jan 29, 2013

We think Charles Schwab (SCHW) continues to exhibit a low cost advantage relative to competitors in the financial services industry, with non-interest expenses as a percentage of total client assets of 0.19%, as of the first three quarters of 2012, according to management. This has led to pre-tax profit margins in excess of 30%, which is a multiple of some of the most well established wealth management platforms in the world. We think that this abnormally low expense rate emanates from Schwab's focus on leveraging its information technology infrastructure. In contrast, we think too many of Schwab's rivals rely on more expensive and less efficient human capital to gather assets. The stock continues to trade at a historically low price to book ratio, though that is somewhat offset by a higher forward price to earnings ratio. We think both valuation metrics are somewhat misleading in this historically low interest rate environment and in the event of a rising interest rates, the Company's earnings would likely expand at a very rapid rate, primarily due to money market fund fee waiver relief. So we continue to believe Charles Schwab represents an excellent balance between business quality and valuation.

From Wedgewood Partners' fourth quarter letter.
Check out David Rolfe latest stock trades

Baron Funds Comments on Charles Schwab - May 24, 2012

From Baron Funds first quarter letter: Shares of The Charles Schwab Corp. (SCHW), an online broker, gained 28.2%.After a rough 2011, Schwab is up strongly as investors start to price in the possibility that interest rates may rise sooner than 2014 as promised by the Federal Reserve. Rising rates should help raise Schwab's net interest margin, reduce fee waivers and boost earnings power.We like Schwab because of its best-in-class platform and its effort to move investors' assets into higherfee, longer-duration active management. (Rob Susman)
Check out Ron Baron latest stock trades

Top Ranked Articles about Charles Schwab Corp

David Rolfe of Wedgewood Partners Comments on Charles Schwab
January 29, 2013
We think Charles Schwab (SCHW) continues to exhibit a low cost advantage relative to competitors in the financial services industry, with non-interest expenses as a percentage of total client assets of 0.19%, as of the first three quarters of 2012, according to management. This has led to pre-tax profit margins in excess of 30%, which is a multiple of some of the most well established wealth management platforms in the world. We think that this abnormally low expense rate emanates from Schwab's focus on leveraging its information technology infrastructure. In contrast, we think too many of Schwab's rivals rely on more expensive and less efficient human capital to gather assets. The stock continues to trade at a historically low price to book ratio, though that is somewhat offset by a higher forward price to earnings ratio. We think both valuation metrics are somewhat misleading in this historically low interest rate environment and in the event of a rising interest rates, the Company's earnings would likely expand at a very rapid rate, primarily due to money market fund fee waiver relief. So we continue to believe Charles Schwab represents an excellent balance between business quality Read more...
Baron Funds Comments on Charles Schwab
May 24, 2012
From Baron Funds first quarter letter: Shares of The Charles Schwab Corp. (SCHW), an online broker, gained 28.2%.After a rough 2011, Schwab is up strongly as investors start to price in the possibility that interest rates may rise sooner than 2014 as promised by the Federal Reserve. Rising rates should help raise Schwab's net interest margin, reduce fee waivers and boost earnings power.We like Schwab because of its best-in-class platform and its effort to move investors' assets into higherfee, longer-duration active management. (Rob Susman) Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 27.80
SCHW's P/E(ttm) is ranked higher than
55% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 18.27 vs. SCHW: 27.80 )
SCHW' s 10-Year P/E(ttm) Range
Min: 8.8   Max: 161.67
Current: 27.8
8.8
161.67
P/B 2.60
SCHW's P/B is ranked lower than
66% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.30 vs. SCHW: 2.60 )
SCHW' s 10-Year P/B Range
Min: 1.69   Max: 17.61
Current: 2.6
1.69
17.61
P/S 4.70
SCHW's P/S is ranked lower than
68% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.10 vs. SCHW: 4.70 )
SCHW' s 10-Year P/S Range
Min: 2.28   Max: 12.14
Current: 4.7
2.28
12.14
PFCF 38.10
SCHW's PFCF is ranked lower than
79% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 8.17 vs. SCHW: 38.10 )
SCHW' s 10-Year PFCF Range
Min: 5.77   Max: 1338
Current: 38.1
5.77
1338
EV-to-EBIT 17.5
SCHW's EV-to-EBIT is ranked higher than
70% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 14.81 vs. SCHW: 17.5 )
SCHW' s 10-Year EV-to-EBIT Range
Min: 4.4   Max: 214.8
Current: 17.5
4.4
214.8
Shiller P/E 18.7
SCHW's Shiller P/E is ranked higher than
91% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.40 vs. SCHW: 18.7 )
SCHW' s 10-Year Shiller P/E Range
Min: 9.97   Max: 56.09
Current: 18.7
9.97
56.09

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.30
SCHW's Dividend Yield is ranked higher than
56% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.06 vs. SCHW: 1.30 )
SCHW' s 10-Year Dividend Yield Range
Min: 0.08   Max: 2.23
Current: 1.3
0.08
2.23
Dividend Payout 0.346
SCHW's Dividend Payout is ranked higher than
89% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.68 vs. SCHW: 0.346 )
SCHW' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.63
Current: 0.35
0.08
0.63
Yield on cost (5-Year) 1.42
SCHW's Yield on cost (5-Year) is ranked higher than
62% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 2.34 vs. SCHW: 1.42 )
SCHW' s 10-Year Yield on cost (5-Year) Range
Min: 0.09   Max: 2.44
Current: 1.42
0.09
2.44
Share Buyback Rate -2.4
SCHW's Share Buyback Rate is ranked higher than
61% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: -0.40 vs. SCHW: -2.4 )
SCHW' s 10-Year Share Buyback Rate Range
Min: 3   Max: -2.4
Current: -2.4

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 2.3
SCHW's Price/Net Current Asset Value is ranked higher than
70% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 6.50 vs. SCHW: 2.3 )
SCHW' s 10-Year Price/Net Current Asset Value Range
Min: 1.6   Max: 3.2
Current: 2.3
1.6
3.2
Price/Tangible Book 3.2
SCHW's Price/Tangible Book is ranked higher than
84% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.10 vs. SCHW: 3.2 )
SCHW' s 10-Year Price/Tangible Book Range
Min: 2.2   Max: 10.7
Current: 3.2
2.2
10.7
Price/DCF (Projected) 1.4
SCHW's Price/DCF (Projected) is ranked higher than
92% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.80 vs. SCHW: 1.4 )
SCHW' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 3
Current: 1.4
0.8
3
Price/Median PS Value 1.1
SCHW's Price/Median PS Value is ranked higher than
59% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 1.00 vs. SCHW: 1.1 )
SCHW' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.6
Current: 1.1
0.7
1.6
Price/Graham Number 1.9
SCHW's Price/Graham Number is ranked higher than
84% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 0.90 vs. SCHW: 1.9 )
SCHW' s 10-Year Price/Graham Number Range
Min: 1.3   Max: 8.7
Current: 1.9
1.3
8.7
Earnings Yield (Greenblatt) 5.70
SCHW's Earnings Yield (Greenblatt) is ranked higher than
68% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 9.05 vs. SCHW: 5.70 )
SCHW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.5   Max: 7370.3
Current: 5.7
0.5
7370.3
Forward Rate of Return (Yacktman) -5.56
SCHW's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 176 Companies
in the Global Capital Markets industry.

( Industry Median: 7.98 vs. SCHW: -5.56 )
SCHW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -15.6   Max: 37.5
Current: -5.56
-15.6
37.5

Business Description

Charles Schwab Corp was incorporated in Delaware in 1986. The Company, through its subsidiaries, is engaged in securities brokerage, banking and related financial services. The Company provides financial services to individuals and institutional clients through two segments - Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services, and supports the availability of Schwab proprietary mutual funds and collective trust funds on third-party platforms. Banking revenues and expenses are allocated to the Company's two segments based on which segment services the client. The Company evaluates the performance of its segments on a pre-tax basis, excluding items such as impairment charges on non-financial assets, discontinued operations, extraordinary items, and significant restructuring and other charges. On September 1, 2011, the Company completed its acquisition of all of the outstanding common shares of optionsXpress Holdings, Inc. (optionsXpress), an online brokerage firm primarily focused on equity option securities and futures. The optionsXpress brokerage platform provides active investors and traders trading tools, analytics and education to execute a variety of investment strategies.
Company Website
SEC Reports
Industry: Capital Markets
Compare:PJC, SIEB, GHL, GS, SF
Traded in other countries:SWG.Germany
» More Articles for SCHW

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