Charles Schwab (FRA:SWG) Beneish M-Score: -2.14 (As of Jun. 26, 2026)


FRA:SWG Charles Schwab Corp FRA:SWG
73 GF Score
Price €80.30
GF Value €88.99
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Charles Schwab Beneish M-Score?

Charles Schwab FRA:SWG -1.47% 73 Beneish M-Score is -2.14 as of Jun. 26, 2026. GuruFocus rates FRA:SWG with a GF Score™ of 73/100 and a GF Value™ of €88.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 702 Capital Markets companies, Charles Schwab ranks worse than 50.71% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Charles Schwab's Beneish M-Score or its related term are showing as below:

FRA:SWG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.79   Med: -2.43   Max: -0.4
Current: -2.14

During the past 13 years, the highest Beneish M-Score of Charles Schwab was -0.40. The lowest was -2.79. And the median was -2.43.

FRA:SWG
73GF Score
Charles Schwab Corp FRA:SWG
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Charles Schwab Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Charles Schwab for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1252+0.528 * 1+0.404 * 1.0009+0.892 * 1.1224+0.115 * 0.9981
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8851+4.679 * -0.001911-0.327 * 0.9003
=-2.21

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €102,086 Mil.
Revenue was 5606.93 + 5410.944 + 5227.02 + 5072.817 = €21,318 Mil.
Gross Profit was 5606.93 + 5410.944 + 5227.02 + 5072.817 = €21,318 Mil.
Total Current Assets was €0 Mil.
Total Assets was €426,721 Mil.
Property, Plant and Equipment(Net PPE) was €2,651 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,159 Mil.
Selling, General, & Admin. Expense(SGA) was €6,065 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €17,804 Mil.
Net Income was 2144.335 + 2099.986 + 2009.016 + 1843.242 = €8,097 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 6350.83 + -651.602 + 458.376 + 2754.459 = €8,912 Mil.
 Total Receivables was €80,833 Mil.
Revenue was 5179.075 + 5089.195 + 4367.147 + 4357.01 = €18,992 Mil.
Gross Profit was 5179.075 + 5089.195 + 4367.147 + 4357.01 = €18,992 Mil.
Total Current Assets was €0 Mil.
Total Assets was €428,185 Mil.
Property, Plant and Equipment(Net PPE) was €3,030 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,321 Mil.
Selling, General, & Admin. Expense(SGA) was €6,105 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €19,844 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(102086.435 / 21317.711) / (80832.975 / 18992.427)
=4.788808 / 4.256063
=1.1252

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(18992.427 / 18992.427) / (21317.711 / 21317.711)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 2651.225) / 426720.935) / (1 - (0 + 3030.3) / 428185.275)
=0.993787 / 0.992923
=1.0009

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=21317.711 / 18992.427
=1.1224

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1320.604 / (1320.604 + 3030.3)) / (1158.636 / (1158.636 + 2651.225))
=0.303524 / 0.304115
=0.9981

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(6064.731 / 21317.711) / (6104.646 / 18992.427)
=0.284493 / 0.321425
=0.8851

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((17804.295 + 0) / 426720.935) / ((19844.025 + 0) / 428185.275)
=0.041724 / 0.046344
=0.9003

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(8096.579 - 0 - 8912.063) / 426720.935
=-0.001911

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Charles Schwab has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.14 mean?
Charles Schwab (FRA:SWG) has a Beneish M-Score of -2.14 as of Jun. 26, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Charles Schwab and its competitors. According to the industry distribution chart, Charles Schwab ranks #356 out of 702 companies in the Capital Markets industry, placing it in the top 50.7%.
Is Charles Schwab's Beneish M-Score too high?
Charles Schwab's current Beneish M-Score is -2.14. Based on the distribution chart, Charles Schwab ranks #356 out of 702 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Charles Schwab has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's Beneish M-Score compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #356 out of 702 companies for Beneish M-Score. This places Charles Schwab in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Capital Markets company?
A good Beneish M-Score depends on the Capital Markets industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Charles Schwab and its competitors. Charles Schwab's current Beneish M-Score is -2.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Based on GuruFocus' analysis, Charles Schwab (FRA:SWG) is currently considered Modestly Undervalued. The stock's GF Value™ is €88.99, compared to a current price of €80.30 — trading 9.8% below its estimated fair value. The current Beneish M-Score is -2.14. Charles Schwab's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Charles Schwab (FRA:SWG), the current Beneish M-Score is -2.14 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Charles Schwab (FRA:SWG) Overvalued in 2026?

Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued. The current stock price of €80.30 is trading 9.8% below its estimated GF Value™ of €88.99. GuruFocus considers Charles Schwab to be Modestly Undervalued.

Key valuation signals for FRA:SWG:

  • Beneish M-Score: -2.14
  • GF Value™: €88.99 vs. price of €80.30 (9.8% below fair value)
  • GF Score™: 73/100 with 2 warning signs

No single metric tells the full story. See the FRA:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Charles Schwab Business Description

Address 3000 Schwab Way, Westlake, TX, USA, 76262
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score

Get the complete analysis for FRA:SWG

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€80.30
Price
€88.99
GF Value