Charles SchwabFRA:SWG -1.47%73 Net Margin % is 38.24% as of Mar. 2026, which is 24% above its 10-year median of 30.96. 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 774 Capital Markets companies, Charles Schwab ranks better than 75.97% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Charles Schwab's Net Income for the
three
months ended in Mar. 2026 was €2,144 Mil. Charles Schwab's Revenue for the
three
months ended in Mar. 2026 was €5,607 Mil. Therefore, Charles Schwab's net margin for the quarter that ended in Mar. 2026 was 38.24%.
The historical rank and industry rank for Charles Schwab's Net Margin % or its related term are showing as below:
FRA:SWG'
s Net Margin % Range Over the Past 10 Years
Min: 25.26 Med: 30.96 Max: 37.99
Current: 37.99
FRA:SWG's Net Margin % is ranked better than 75.97% of 774
companies
in the Capital Markets industry
Industry Median: 14.305
vs FRA:SWG: 37.99
Charles Schwab (FRA:SWG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Charles Schwab Net Margin % Related Terms
Charles Schwab Net Margin % Historical Data
* Premium members only.
The historical data trend for Charles Schwab's Net Margin % can be seen below:
* 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.
FRA:SWG vs HOOD, IBKR, CRCL: Net Margin % Comparison
For the Capital Markets subindustry, Charles Schwab's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charles Schwab Net Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Charles Schwab's Net Margin % distribution charts can be found below:
* The bar in red indicates where Charles Schwab's Net Margin % falls into.
* 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.
Charles Schwab (FRA:SWG) has a Net Margin % of 38.24% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Charles Schwab and its competitors. This is 24% above median its historical median of 30.96. Over the past decade, Charles Schwab's Net Margin % has ranged from 25.26 to 37.99. According to the industry distribution chart, Charles Schwab ranks #186 out of 774 companies in the Capital Markets industry, placing it in the top 24%.
Is Charles Schwab's Net Margin % too high?
Charles Schwab's current Net Margin % of 38.24% is 24% above median its 10-year median of 30.96. Over the past 10 years, this metric has ranged from a low of 25.26 to a high of 37.99. The Capital Markets industry median Net Margin % is 14.31. Charles Schwab's value of 38.24% is 167.3% above this industry median. Based on the distribution chart, Charles Schwab ranks #186 out of 774 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. 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 Net Margin % compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #186 out of 774 companies for Net Margin %. This places Charles Schwab in the top 24% of its industry — outperforming the majority of peers. The industry median Net Margin % is 14.31. Charles Schwab's value of 38.24% is 167.3% above this benchmark. Historically, Charles Schwab's own Net Margin % has ranged from 25.26 to 37.99 over the past decade. While the company's 10-year median is 30.96 vs. the industry median of 14.31, Charles Schwab has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Capital Markets company?
The median Net Margin % among Capital Markets companies is 14.31, based on 774 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charles Schwab's current Net Margin % of 38.24% is 167.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Charles Schwab and its competitors. For the Capital Markets industry, the median Net Margin % is 14.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charles Schwab's current Net Margin % is 38.24%, which is 24% above median its own 10-year median of 30.96. 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 Net Margin % is 38.24%, which is 24% above median its 10-year median of 30.96 and 167.3% above the Capital Markets industry median of 14.31. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Charles Schwab (FRA:SWG), the current Net Margin % is 38.24% as of Mar. 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:
Net Margin %: 38.24% (24% above median its 10-year median of 30.96)
GF Value™: €88.99 vs. price of €80.30 (9.8% below fair value)
Industry Position: 167.3% above the Capital Markets median (#186 of 774)
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 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
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