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Also traded in: Brazil, Germany, Mexico

GuruFocus Financial Strength Rank measures how strong a company’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 : 5/10

vs
industry
vs
history
Cash-to-Debt 3.43
SCHW's Cash-to-Debt is ranked lower than
81% of the 775 Companies
in the Global Capital Markets industry.

( Industry Median: 9999.00 vs. SCHW: 3.43 )
Ranked among companies with meaningful Cash-to-Debt only.
SCHW' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.72  Med: 2.46 Max: 27.52
Current: 3.43
0.72
27.52
Equity-to-Asset 0.08
SCHW's Equity-to-Asset is ranked lower than
94% of the 703 Companies
in the Global Capital Markets industry.

( Industry Median: 0.55 vs. SCHW: 0.08 )
Ranked among companies with meaningful Equity-to-Asset only.
SCHW' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.03  Med: 0.07 Max: 0.12
Current: 0.08
0.03
0.12
Debt-to-Equity 0.21
SCHW's Debt-to-Equity is ranked lower than
73% of the 353 Companies
in the Global Capital Markets industry.

( Industry Median: 0.47 vs. SCHW: 0.21 )
Ranked among companies with meaningful Debt-to-Equity only.
SCHW' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.08  Med: 0.31 Max: 1.07
Current: 0.21
0.08
1.07
Debt-to-EBITDA 0.46
SCHW's Debt-to-EBITDA is ranked lower than
60% of the 420 Companies
in the Global Capital Markets industry.

( Industry Median: 3.13 vs. SCHW: 0.46 )
Ranked among companies with meaningful Debt-to-EBITDA only.
SCHW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0.46
Current: 0.46
0
0.46
Beneish M-Score: -2.36
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’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 : 4/10

vs
industry
vs
history
Net Margin % 28.80
SCHW's Net Margin % is ranked higher than
67% of the 755 Companies
in the Global Capital Markets industry.

( Industry Median: 13.05 vs. SCHW: 28.80 )
Ranked among companies with meaningful Net Margin % only.
SCHW' s Net Margin % Range Over the Past 10 Years
Min: 10.62  Med: 20.77 Max: 28.8
Current: 28.8
10.62
28.8
ROE % 13.29
SCHW's ROE % is ranked higher than
71% of the 762 Companies
in the Global Capital Markets industry.

( Industry Median: 6.16 vs. SCHW: 13.29 )
Ranked among companies with meaningful ROE % only.
SCHW' s ROE % Range Over the Past 10 Years
Min: 8.04  Med: 11.54 Max: 31.1
Current: 13.29
8.04
31.1
ROA % 1.10
SCHW's ROA % is ranked lower than
61% of the 779 Companies
in the Global Capital Markets industry.

( Industry Median: 1.88 vs. SCHW: 1.10 )
Ranked among companies with meaningful ROA % only.
SCHW' s ROA % Range Over the Past 10 Years
Min: 0.54  Med: 0.88 Max: 2.58
Current: 1.1
0.54
2.58
3-Year Revenue Growth Rate 11.40
SCHW's 3-Year Revenue Growth Rate is ranked higher than
65% of the 642 Companies
in the Global Capital Markets industry.

( Industry Median: 4.90 vs. SCHW: 11.40 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
SCHW' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -10  Med: 8.75 Max: 46.2
Current: 11.4
-10
46.2
3-Year EPS without NRI Growth Rate 19.20
SCHW's 3-Year EPS without NRI Growth Rate is ranked higher than
62% of the 533 Companies
in the Global Capital Markets industry.

( Industry Median: 8.80 vs. SCHW: 19.20 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
SCHW' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -43.7  Med: 23.5 Max: 115.4
Current: 19.2
-43.7
115.4
GuruFocus has detected 3 Warning Signs with Charles Schwab Corp SCHW.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» SCHW's 30-Y Financials

Financials (Next Earnings Date: 2018-07-18)


Revenue & Net Income
Equity & Asset
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q2 2017

SCHW Guru Trades in Q2 2017

Ken Heebner 890,000 sh (New)
Paul Tudor Jones 6,626 sh (New)
Manning & Napier Advisors, Inc 1,468,985 sh (+1118.87%)
David Carlson 2,400,000 sh (+4.35%)
Ruane Cunniff 8,214,679 sh (+1.13%)
Ron Baron 6,594,876 sh (+0.87%)
Chris Davis 819,312 sh (+0.75%)
Mairs and Power 298,393 sh (+0.06%)
Jerome Dodson 900,000 sh (unchged)
Tom Gayner 1,057,000 sh (unchged)
First Eagle Investment 900 sh (unchged)
Ray Dalio Sold Out
Andreas Halvorsen Sold Out
Mario Gabelli 106,673 sh (-0.07%)
Dodge & Cox 94,777,563 sh (-0.81%)
Lou Simpson 6,210,430 sh (-1.36%)
Pioneer Investments 2,569,342 sh (-3.63%)
PRIMECAP Management 39,791,709 sh (-3.82%)
Frank Sands 27,875,653 sh (-4.39%)
Glenn Greenberg 7,302,503 sh (-4.57%)
Chuck Royce 20,900 sh (-5.00%)
Murray Stahl 10,287 sh (-5.28%)
David Rolfe 2,796,859 sh (-23.12%)
Joel Greenblatt 27,928 sh (-42.84%)
» More
Q3 2017

SCHW Guru Trades in Q3 2017

Ray Dalio 19,522 sh (New)
Jim Simons 53,500 sh (New)
Paul Tudor Jones 37,486 sh (+465.74%)
Pioneer Investments 4,887,840 sh (+90.24%)
Ken Heebner 1,680,000 sh (+88.76%)
Ruane Cunniff 8,348,548 sh (+1.63%)
Ron Baron 6,702,472 sh (+1.63%)
Mairs and Power 301,938 sh (+1.19%)
Chris Davis 827,632 sh (+1.02%)
Tom Gayner 1,057,000 sh (unchged)
David Carlson 2,400,000 sh (unchged)
First Eagle Investment 900 sh (unchged)
Chuck Royce 20,900 sh (unchged)
Mario Gabelli 106,378 sh (-0.28%)
Murray Stahl 10,256 sh (-0.30%)
Lou Simpson 6,189,953 sh (-0.33%)
Glenn Greenberg 7,143,220 sh (-2.18%)
Manning & Napier Advisors, Inc 1,430,660 sh (-2.61%)
PRIMECAP Management 37,652,456 sh (-5.38%)
Frank Sands 26,375,530 sh (-5.38%)
Dodge & Cox 88,251,967 sh (-6.89%)
David Rolfe 2,327,760 sh (-16.77%)
Joel Greenblatt 17,177 sh (-38.50%)
Jerome Dodson 500,000 sh (-44.44%)
» More
Q4 2017

SCHW Guru Trades in Q4 2017

Lee Ainslie 3,150,359 sh (New)
George Soros 67,300 sh (New)
Pioneer Investments 6,879,265 sh (+40.74%)
Joel Greenblatt 18,551 sh (+8.00%)
Mairs and Power 309,713 sh (+2.58%)
Chris Davis 846,768 sh (+2.31%)
Jerome Dodson 500,000 sh (unchged)
First Eagle Investment 900 sh (unchged)
Tom Gayner 1,057,000 sh (unchged)
Jim Simons Sold Out
Mario Gabelli 106,133 sh (-0.23%)
Ruane Cunniff 8,309,056 sh (-0.47%)
Lou Simpson 6,112,229 sh (-1.26%)
Dodge & Cox 87,011,496 sh (-1.41%)
Ron Baron 6,514,105 sh (-2.81%)
David Carlson 2,320,000 sh (-3.33%)
Frank Sands 25,431,961 sh (-3.58%)
PRIMECAP Management 34,768,270 sh (-7.66%)
Glenn Greenberg 6,320,124 sh (-11.52%)
Murray Stahl 8,746 sh (-14.72%)
Chuck Royce 16,900 sh (-19.14%)
David Rolfe 1,733,887 sh (-25.51%)
Ken Heebner 1,140,000 sh (-32.14%)
Paul Tudor Jones 20,482 sh (-45.36%)
Ray Dalio 5,340 sh (-72.65%)
» More
Q1 2018

SCHW Guru Trades in Q1 2018

George Soros 348,381 sh (+417.65%)
Mairs and Power 678,902 sh (+119.20%)
Joel Greenblatt 25,233 sh (+36.02%)
Ken Heebner 1,240,000 sh (+8.77%)
Lee Ainslie 3,408,259 sh (+8.19%)
Ruane Cunniff 8,314,292 sh (+0.06%)
Jerome Dodson 500,000 sh (unchged)
Tom Gayner 1,057,000 sh (unchged)
David Carlson 2,320,000 sh (unchged)
Ray Dalio Sold Out
Paul Tudor Jones Sold Out
First Eagle Investment Sold Out
Ron Baron 6,507,760 sh (-0.10%)
Mario Gabelli 105,883 sh (-0.24%)
Dodge & Cox 85,484,446 sh (-1.75%)
Lou Simpson 5,959,534 sh (-2.50%)
Chris Davis 816,812 sh (-3.54%)
Frank Sands 23,872,209 sh (-6.13%)
Glenn Greenberg 5,875,485 sh (-7.04%)
PRIMECAP Management 32,213,155 sh (-7.35%)
Murray Stahl 8,093 sh (-7.47%)
David Rolfe 1,515,704 sh (-12.58%)
Pioneer Investments 5,215,521 sh (-24.18%)
Chuck Royce 8,400 sh (-50.30%)
» More
» Details

Insider Trades

Latest Guru Trades with SCHW

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Dodge & Cox 2018-03-31 Reduce -1.75%0.06%$48.9 - $57.76 $ 55.484%85,484,446
Ruane Cunniff 2018-03-31 Add 0.06%$48.9 - $57.76 $ 55.484%8,314,292
Ron Baron 2018-03-31 Reduce -0.10%$48.9 - $57.76 $ 55.484%6,507,760
Lou Simpson 2018-03-31 Reduce -2.50%0.26%$48.9 - $57.76 $ 55.484%5,959,534
Glenn Greenberg 2018-03-31 Reduce -7.04%0.97%$48.9 - $57.76 $ 55.484%5,875,485
Ken Heebner 2018-03-31 Add 8.77%0.23%$48.9 - $57.76 $ 55.484%1,240,000
Chris Davis 2018-03-31 Reduce -3.54%0.01%$48.9 - $57.76 $ 55.484%816,812
George Soros 2018-03-31 Add 417.65%0.27%$48.9 - $57.76 $ 55.484%348,381
Mario Gabelli 2018-03-31 Reduce -0.24%$48.9 - $57.76 $ 55.484%105,883
Joel Greenblatt 2018-03-31 Add 36.02%0.01%$48.9 - $57.76 $ 55.484%25,233
First Eagle Investment 2018-03-31 Sold Out $48.9 - $57.76 $ 55.484%0
Dodge & Cox 2017-12-31 Reduce -1.41%0.04%$43.27 - $52.28 $ 55.4818%87,011,496
Ruane Cunniff 2017-12-31 Reduce -0.47%0.02%$43.27 - $52.28 $ 55.4818%8,309,056
Ron Baron 2017-12-31 Reduce -2.81%0.04%$43.27 - $52.28 $ 55.4818%6,514,105
Glenn Greenberg 2017-12-31 Reduce -11.52%1.74%$43.27 - $52.28 $ 55.4818%6,320,124
Lou Simpson 2017-12-31 Reduce -1.26%0.12%$43.27 - $52.28 $ 55.4818%6,112,229
Ken Heebner 2017-12-31 Reduce -32.14%1.04%$43.27 - $52.28 $ 55.4818%1,140,000
Chris Davis 2017-12-31 Add 2.31%$43.27 - $52.28 $ 55.4818%846,768
Mario Gabelli 2017-12-31 Reduce -0.23%$43.27 - $52.28 $ 55.4818%106,133
George Soros 2017-12-31 New Buy0.1%$43.27 - $52.28 $ 55.4818%67,300
Joel Greenblatt 2017-12-31 Add 8.00%$43.27 - $52.28 $ 55.4818%18,551
Dodge & Cox 2017-09-30 Reduce -6.89%0.24%$38.11 - $44.04 $ 55.4834%88,251,967
Ruane Cunniff 2017-09-30 Add 1.63%0.05%$38.11 - $44.04 $ 55.4834%8,348,548
Glenn Greenberg 2017-09-30 Reduce -2.18%0.3%$38.11 - $44.04 $ 55.4834%7,143,220
Ron Baron 2017-09-30 Add 1.63%0.02%$38.11 - $44.04 $ 55.4834%6,702,472
Lou Simpson 2017-09-30 Reduce -0.33%0.03%$38.11 - $44.04 $ 55.4834%6,189,953
Ken Heebner 2017-09-30 Add 88.76%1.51%$38.11 - $44.04 $ 55.4834%1,680,000
Chris Davis 2017-09-30 Add 1.02%$38.11 - $44.04 $ 55.4834%827,632
Mario Gabelli 2017-09-30 Reduce -0.28%$38.11 - $44.04 $ 55.4834%106,378
Joel Greenblatt 2017-09-30 Reduce -38.50%0.01%$38.11 - $44.04 $ 55.4834%17,177
Dodge & Cox 2017-06-30 Reduce -0.81%0.03%$37.53 - $43.01 $ 55.4839%94,777,563
Ruane Cunniff 2017-06-30 Add 1.13%0.04%$37.53 - $43.01 $ 55.4839%8,214,679
Glenn Greenberg 2017-06-30 Reduce -4.57%0.68%$37.53 - $43.01 $ 55.4839%7,302,503
Ron Baron 2017-06-30 Add 0.87%0.01%$37.53 - $43.01 $ 55.4839%6,594,876
Lou Simpson 2017-06-30 Reduce -1.36%0.13%$37.53 - $43.01 $ 55.4839%6,210,430
Ken Heebner 2017-06-30 New Buy1.75%$37.53 - $43.01 $ 55.4839%890,000
Chris Davis 2017-06-30 Add 0.75%$37.53 - $43.01 $ 55.4839%819,312
Mario Gabelli 2017-06-30 Reduce -0.07%$37.53 - $43.01 $ 55.4839%106,673
Joel Greenblatt 2017-06-30 Reduce -42.84%0.01%$37.53 - $43.01 $ 55.4839%27,928
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Preferred stocks of Charles Schwab Corp

SymbolPriceYieldDescription
SCHWpD.PFD26.465.62Deposit Shs Repr 1/40th % Non-Cum Pfd Shs Series -D-
SCHWpB/CL.PFD24.996.00Deposit Shs Repr 6% Non-Cum Perp Pfd Shs Series -B-
SCHWpC.PFD26.755.636 % Non-Cum Pfd Shs Series -C-

Business Description

Industry: Brokers & Exchanges » Capital Markets    NAICS: 523120    SIC: 6211
Compare:NYSE:MS, NYSE:GS, NYSE:SPGI, SHSE:600030, NAS:AMTD, NYSE:MCO, NAS:IBKR, TSX:TRI, ASX:MQG, SHSE:601211, TSE:8604, SHSE:601688, SHSE:600837, SZSE:000776, SZSE:000166, SHSE:600999, NAS:ETFC, SZSE:002736, NYSE:MSCI, NYSE:RJF » details
Traded in other countries:SCHW34.Brazil, SWG.Germany, SCHW.Mexico,
Headquarter Location:USA
Charles Schwab Corp through its subsidiaries provides retail brokerage and banking, retirement plan, and other corporate brokerage services. The company's operating business segments are Investor Services and Advisor Services.

Based in San Francisco, Charles Schwab operates in the brokerage, banking, and asset-management businesses. The company runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website. It also operates a bank, a proprietary mutual fund business, and offers services to independent investment advisors. The company is among the largest firms in the investment business, with over $3 trillion of client assets.

Guru Investment Theses on Charles Schwab Corp

Ruane Cunniff Comments on Charles Schwab - Mar 06, 2018

Charles Schwab (NYSE:SCHW) had an excellent year. The company’s diluted earnings per share rose 23%, driven primarily by a 21% increase in client assets as well as a modest increase in interest rates, which favorably impacted the spread the company earns on the client cash it keeps at its internal bank. A strong stock market contributed to the growth in client assets, but so too did Schwab’s continued asset gathering. The company took in nearly $200 billion of core net new assets, up 58% from 2016.These net new assets alone contributed seven points to the company’s growth in client assets.

Schwab’s investor-friendly strategy positions it well to continue gathering assets from the traditional wirehouses that still hold client assets on the order of $10 trillion. Moreover, the trend towards passive investment products and automated investment advice represents more opportunity than risk for the company. We believe that Schwab has a powerful value proposition that is supported by long-term secular trends and that the stock should generate, from here, a good through-cycle return.

From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund 4th Quarter 2017 Manager's Commentary.

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Ron Baron Comments on The Charles Schwab Corp - Feb 05, 2018

Shares of discount brokerage firm The Charles Schwab Corp. (NYSE:SCHW) appreciated in the quarter. Schwab’s core operations continue to perform well. Net new assets are growing steadily and new clients are joining the firm at a record pace. Schwab has been focused on sharing economies of scale with clients through price reductions, rebates, and low-cost products. Despite these lower fees, operating margins continue to expand to record levels through its scale and efficiencies, which we believe bodes well for Schwab’s continued abilities to increase its client base and assets. (Michael Baron)

From Ron Baron (Trades, Portfolio)'s Partners Fund 2018 shareholder letter.



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David Rolfe Comments on Charles Schwab - Jan 12, 2018

Charles Schwab (NYSE:SCHW) continues to execute on their differentiated strategy of providing low-cost financial services to mass affluent customers and advisors in the U.S. The Company continued to generate excellent and expanding pre-tax profit margins, relative to its large captive and independent competitors, despite aggressively lowering trading commissions earlier in the year, and launching low -cost index mutual funds in the most recent quarter. As Schwab attracts more assets to its banking and brokerage platforms, the Company’s overhead expense as a percentage of platform assets continues declining to what we calculate to be roughly 15 basis points per dollar of assets (trailing four quarters through the end of September). This overhead expense compares to the nearly 150 basis points of net interest margin available to the Company on almost $70 billion of client assets that they plan on transferring from money markets to the banking subsidiary over the next three years. Combined with a dramatically lower tax rate for the foreseeable future, we think Schwab has a unique opportunity to substantially grow its earnings base over the next several years.

From David Rolfe (Trades, Portfolio)'s fourth quarter 2017 shareholder commentary.

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Baron Opportunity Fund Comments on The Charles Schwab Corp - Feb 21, 2017

Shares of brokerage business The Charles Schwab Corp. (NYSE:SCHW) increased during the fourth quarter on the potential of multiple interest rate increases into 2017, which should materially improve the company’s earnings. Charles Schwab also reported solid asset growth reaching over $2.7 trillion. The business continued to shift to fee-based advice from trading activity, a move that we believe creates more stability and the potential for increased profitability. (Michael Baron)





From Baron Funds' Baron Opportunity Fund fourth quarter 2016 commentary.



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Baron Funds' Baron Fifth Avenue Growth Fund Comments on The Charles Schwab Corp - Feb 13, 2017

Shares of brokerage business The Charles Schwab Corp. (NYSE:SCHW) rose over 25% in the fourth quarter on the expectation of multiple interest rate increases in 2017, which should bode well for the company’s earnings. Charles Schwab also reported solid asset growth reaching over $2.7 trillion. The business continued to shift to fee-based advice from trading activity, a move that we believe creates more stability and the potential for increased profitability.



From Baron Funds' Fifth Avenue Growth Fund fourth quarter 2016 commentary.



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Baron Asset Fund Comments on The Charles Schwab Corp - Jan 30, 2017

Shares of The Charles Schwab Corp. (NYSE:SCHW), the well-known brokerage firm, increased sharply in the aftermath of the presidential election. Interest rates and equity markets both spiked in anticipation of the likely impact of the Trump presidency on financial markets. Both these factors should be positive for Schwab’s earnings over the near term. In addition, the company continued to grow the assets it oversees at a healthy pace.



From Barron Asset Fund fourth quarter 2016 commentary.



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Jerome Dodson Comments on Charles Schwab - Jan 25, 2017

Charles Schwab (NYSE:SCHW), the San Francisco–based bank and brokerage firm, rose 19.9%, from $32.93 to $39.47, contributing 101 basis points to the Fund’s return. Schwab’s earnings on its bank assets and money market funds move up and down with interest rates. The stock spent most of the year underwater, as interest rates fell and central bankers in Japan and Europe pushed their rates into negative territory. The tide started to turn in July, however, as the U.S. economy improved and interest rates rose. Schwab’s stock jumped as rates surged even market is fully valued, it won’t necessarily go down. It can stay fully valued for a long time without dropping significantly lower. The robust economy, combined with Mr. Trump’s proposed policies, could cause an acceleration in corporate earnings, which could push the market even higher.



From the Parnassus Fund fourth quarter 2016 commentary.



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David Rolfe Comments on Charles Schwab - Jan 16, 2017

Charles Schwab (NYSE:SCHW) was a top performer in the quarter as the company stands to benefit from the continued normalization of U.S. monetary policy. Despite a single federal funds rate hike during calendar year 2016, market expectations for further rate hikes have dramatically risen in the face of potential fiscal stimulus and higher inflation expectations.

While we understand the market’s desire to discount the near-term “embedded option” of money market fee waiver relief at Schwab, we continue to invest in the Company for its industry-leading pretax profit margins and asset gathering capabilities, which we think are a byproduct of their consistent productivity investments made over the past few decades. We think this positions Schwab well in the increasingly commodified financial services industry, as the Company’s low-cost model and scale allows them to pass savings on to advisors and clients in the form of competitively lower fees, in exchange for mid-single digit platform asset growth. Combined with modest rate relief and continued productivity gains, we expect Schwab to continue posting earnings per share growth in the mid-teens.

From David Rolfe (Trades, Portfolio)'s fourth quarter 2016 Wedgewood Partners investor letter.



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Baron Funds Comments on The Charles Schwab Corp. - Nov 14, 2016

Shares of brokerage business The Charles Schwab Corp. (NYSE:SCHW) appreciated in the third quarter on continued strong asset growth. The business continued to shift to fee-based advice from trading activity, a move that we believe creates more stability and the potential for increased profitability. Speculation of an interest rate hike by the U.S. Federal Reserve also helped boost the stock price as a rate increase would likely improve earnings for the company. (Michael Baron)



From Ron Baron (Trades, Portfolio)'s Barons Partners Fund third-quarter 2016 commentary.



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Jerome Dodson Comments on Charles Schwab - Nov 01, 2016

Charles Schwab (NYSE:SCHW), the San Francisco–based bank and brokerage firm, jumped 24.7% from $25.31 to $31.57, adding 78 basis points to the Fund’s return. During the quarter, investors started anticipating an increase in interest rates. This matters for Schwab, because higher rates improve the company’s ability to profit from its bank assets and money market funds.



From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund third-quarter 2016 commentary.

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Baron Funds Comments on The Charles Schwab Corp - Oct 21, 2016

Shares of brokerage firm The Charles Schwab Corp. (NYSE:SCHW) appreciated as rising equity markets led to growth in its client assets and the revenue streams stemming from those assets. The firm also continued to grow its percentage of assets that charge for fee-based advice, a move that we believe creates greater revenue visibility and the potential for increased profitability. In addition, ongoing speculation of an interest rate hike by the U.S. Federal Reserve was a positive for Schwab, which we believe would experience significant, rapid profit growth should interest rates increase to higher historical levels.



From Baron Funds' Barron Asset Fund third-quarter 2016 commentary.



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Jerome Dodson Comments on Charles Schwab - Jul 26, 2016

Charles Schwab (NYSE:SCHW), the San Francisco–based bank and brokerage firm, saw its stock drop 9.7% from $28.02 to $25.31, for a loss of 30 basis points. The stock slid because investors pushed back their expectations for a rise in interest rates. At the beginning of the quarter, the market assigned a less than 50% probability that the Fed Funds rate would remain unchanged in the 0.25%-0.50% range by the end of 2016. In late June (on the heels of the Brexit news), this probability shot up to almost 90%. This matters for Schwab, because low rates crimp the company’s ability to profit from its bank assets and money market funds. We’re holding our Schwab position, despite this expected delay in an interest rate hike, because we think the company’s long-term prospects are terrific.


From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.

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Ruane Cunniff Comments on Charles Schwab - Jul 13, 2016

Charles Schwab (NYSE:SCHW) pioneered the discount brokerage business in the mid-1970s and has remained an innovator in the investment services industry ever since. It built the well-known OneSource marketplace to provide individual investors access to thousands of no-load mutual funds and was among the first to provide individual investors with an online interface. The success of its investor-friendly strategy is evidenced by a tripling of the company’s client assets from $870 billion in 2000 to more than $2.5 trillion at year-end 2015. This makes Schwab the largest publicly-traded investment services firm in the U.S., ahead of all other discount brokers as well as all the wirehouses. We believe Schwab will continue to attract new brokerage accounts and client assets.

Specifically, we believe that the trend towards passive investment products and toward automated investment advice represents more opportunity than risk for the company. Traditional wirehouses still hold more than $10 trillion in client assets and likely will be market share donors for years to come. Schwab also holds many billions of dollars in client cash deposits, on which it earns a spread that tends to rise when interest rates rise. Any increase in short-term interest rates would provide significant earnings to Schwab, and thus upside to our investment, though we are not counting on it.

From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund second quarter 2016 shareholder letter.

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Ratios

vs
industry
vs
history
PE Ratio 31.52
SCHW's PE Ratio is ranked lower than
75% of the 589 Companies
in the Global Capital Markets industry.

( Industry Median: 19.24 vs. SCHW: 31.52 )
Ranked among companies with meaningful PE Ratio only.
SCHW' s PE Ratio Range Over the Past 10 Years
Min: 8.8  Med: 27.36 Max: 52.57
Current: 31.52
8.8
52.57
Forward PE Ratio 23.26
SCHW's Forward PE Ratio is ranked lower than
85% of the 84 Companies
in the Global Capital Markets industry.

( Industry Median: 17.42 vs. SCHW: 23.26 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 31.52
SCHW's PE Ratio without NRI is ranked lower than
75% of the 583 Companies
in the Global Capital Markets industry.

( Industry Median: 19.55 vs. SCHW: 31.52 )
Ranked among companies with meaningful PE Ratio without NRI only.
SCHW' s PE Ratio without NRI Range Over the Past 10 Years
Min: 11.59  Med: 27.64 Max: 52.57
Current: 31.52
11.59
52.57
Price-to-Owner-Earnings 18.34
SCHW's Price-to-Owner-Earnings is ranked lower than
74% of the 263 Companies
in the Global Capital Markets industry.

( Industry Median: 19.56 vs. SCHW: 18.34 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
SCHW' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 7.06  Med: 22.26 Max: 142.87
Current: 18.34
7.06
142.87
PB Ratio 4.52
SCHW's PB Ratio is ranked lower than
84% of the 743 Companies
in the Global Capital Markets industry.

( Industry Median: 1.33 vs. SCHW: 4.52 )
Ranked among companies with meaningful PB Ratio only.
SCHW' s PB Ratio Range Over the Past 10 Years
Min: 1.79  Med: 3.53 Max: 8.28
Current: 4.52
1.79
8.28
PS Ratio 8.42
SCHW's PS Ratio is ranked lower than
75% of the 716 Companies
in the Global Capital Markets industry.

( Industry Median: 3.81 vs. SCHW: 8.42 )
Ranked among companies with meaningful PS Ratio only.
SCHW' s PS Ratio Range Over the Past 10 Years
Min: 2.61  Med: 5.36 Max: 9.02
Current: 8.42
2.61
9.02
Price-to-Free-Cash-Flow 31.05
SCHW's Price-to-Free-Cash-Flow is ranked lower than
95% of the 214 Companies
in the Global Capital Markets industry.

( Industry Median: 16.59 vs. SCHW: 31.05 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
SCHW' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 5.79  Med: 20.57 Max: 131.72
Current: 31.05
5.79
131.72
Price-to-Operating-Cash-Flow 27.55
SCHW's Price-to-Operating-Cash-Flow is ranked lower than
93% of the 253 Companies
in the Global Capital Markets industry.

( Industry Median: 13.69 vs. SCHW: 27.55 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
SCHW' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 5.37  Med: 19.52 Max: 6123.33
Current: 27.55
5.37
6123.33
EV-to-Revenue 7.57
SCHW's EV-to-Revenue is ranked lower than
74% of the 683 Companies
in the Global Capital Markets industry.

( Industry Median: 4.20 vs. SCHW: 7.57 )
Ranked among companies with meaningful EV-to-Revenue only.
SCHW' s EV-to-Revenue Range Over the Past 10 Years
Min: -3.8  Med: 4.4 Max: 9.7
Current: 7.57
-3.8
9.7
Shiller PE Ratio 53.13
SCHW's Shiller PE Ratio is ranked lower than
88% of the 138 Companies
in the Global Capital Markets industry.

( Industry Median: 25.44 vs. SCHW: 53.13 )
Ranked among companies with meaningful Shiller PE Ratio only.
SCHW' s Shiller PE Ratio Range Over the Past 10 Years
Min: 13.56  Med: 27.44 Max: 57.17
Current: 53.13
13.56
57.17

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 0.65
SCHW's Dividend Yield % is ranked lower than
91% of the 615 Companies
in the Global Capital Markets industry.

( Industry Median: 2.34 vs. SCHW: 0.65 )
Ranked among companies with meaningful Dividend Yield % only.
SCHW' s Dividend Yield % Range Over the Past 10 Years
Min: 0.57  Med: 0.98 Max: 2.23
Current: 0.65
0.57
2.23
Dividend Payout Ratio 0.19
SCHW's Dividend Payout Ratio is ranked higher than
86% of the 361 Companies
in the Global Capital Markets industry.

( Industry Median: 0.41 vs. SCHW: 0.19 )
Ranked among companies with meaningful Dividend Payout Ratio only.
SCHW' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.2  Med: 0.28 Max: 0.63
Current: 0.19
0.2
0.63
3-Year Dividend Growth Rate 10.10
SCHW's 3-Year Dividend Growth Rate is ranked higher than
62% of the 252 Companies
in the Global Capital Markets industry.

( Industry Median: 3.60 vs. SCHW: 10.10 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
SCHW' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 14.85 Max: 61.3
Current: 10.1
0
61.3
Forward Dividend Yield % 0.71
SCHW's Forward Dividend Yield % is ranked lower than
92% of the 594 Companies
in the Global Capital Markets industry.

( Industry Median: 2.26 vs. SCHW: 0.71 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 0.84
SCHW's 5-Year Yield-on-Cost % is ranked lower than
88% of the 757 Companies
in the Global Capital Markets industry.

( Industry Median: 3.03 vs. SCHW: 0.84 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
SCHW' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.74  Med: 1.27 Max: 2.89
Current: 0.84
0.74
2.89
3-Year Average Share Buyback Ratio -0.90
SCHW's 3-Year Average Share Buyback Ratio is ranked higher than
61% of the 348 Companies
in the Global Capital Markets industry.

( Industry Median: -2.60 vs. SCHW: -0.90 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
SCHW' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -5.1  Med: -0.9 Max: 4.4
Current: -0.9
-5.1
4.4

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 4.92
SCHW's Price-to-Tangible-Book is ranked lower than
83% of the 703 Companies
in the Global Capital Markets industry.

( Industry Median: 1.36 vs. SCHW: 4.92 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
SCHW' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 1.76  Med: 4.37 Max: 23.84
Current: 4.92
1.76
23.84
Price-to-Intrinsic-Value-Projected-FCF 3.05
SCHW's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
84% of the 225 Companies
in the Global Capital Markets industry.

( Industry Median: 1.30 vs. SCHW: 3.05 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
SCHW' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.8  Med: 2.13 Max: 11.74
Current: 3.05
0.8
11.74
Price-to-Median-PS-Value 1.57
SCHW's Price-to-Median-PS-Value is ranked lower than
79% of the 605 Companies
in the Global Capital Markets industry.

( Industry Median: 1.00 vs. SCHW: 1.57 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
SCHW' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.12  Med: 0.77 Max: 2.57
Current: 1.57
0.12
2.57
Price-to-Graham-Number 2.62
SCHW's Price-to-Graham-Number is ranked lower than
86% of the 361 Companies
in the Global Capital Markets industry.

( Industry Median: 1.08 vs. SCHW: 2.62 )
Ranked among companies with meaningful Price-to-Graham-Number only.
SCHW' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.69  Med: 2.42 Max: 9.93
Current: 2.62
0.69
9.93

More Statistics

Revenue (TTM) (Mil) $8,935.00
EPS (TTM) $ 1.76
Beta1.68
Volatility18.29%
52-Week Range $38.06 - 60.22
Shares Outstanding (Mil)1,349.19

Analyst Estimate

Dec18 Dec19 Dec20
Revenue (Mil $) 10,124 11,393 12,465
EBIT (Mil $) 4,437 5,276 6,404
EBITDA (Mil $) 4,844 5,650 6,243
EPS ($) 2.41 2.82 3.16
EPS without NRI ($) 2.41 2.82 3.16
EPS Growth Rate
(Future 3Y To 5Y Estimate)
18.76%
Dividends per Share ($) 0.40 0.51 0.65

Piotroski F-Score Details

Piotroski F-Score: ----
Positive ROAN
Positive CFROAN
Higher ROA yoyN
CFROA > ROAN
Lower Leverage yoyN
Higher Current Ratio yoyN
Less Shares Outstanding yoyN
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

Personalized Checklist

Checklist has been moved to "Checklist" tab.

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