SCHWSCHW
US • —
$92.27
P/E
17.51
PEG
0.36
FCF Yield
—
Rev Growth YoY
+8.1% YoY
Gross Margin
87.6%
Health Score
5/10
D/E Ratio
5.80
Confidence
LOW
Business Snapshot
Charles Schwab Corporation operates as a financial services firm, deriving a significant portion of its revenue from asset management and administration fees, as well as net interest income from banking activities and trading commissions. The company competes in the highly competitive wealth management, brokerage, and banking sectors, positioned as a dominant player with a substantial client asset base. Its market cap is not provided in this data payload, limiting a precise market capitalisation tier classification. A defining characteristic of Schwab is its asset-gathering business model, where low-cost brokerage services attract client assets that generate recurring fees and a stable deposit base.
Financial Health
The company maintains a strong gross margin of 87.6%, suggesting significant pricing power or a low cost of delivering services, though a prior-year comparison is unavailable for trend analysis. Net margin stands at a healthy 33.3%, indicating efficient conversion of revenue to profit...
Risk Assessment
- DEBT — Debt/Equity of 5.8x indicates a highly leveraged balance sheet and elevated financial risk.
- LIQUIDITY — Current ratio of 0.39x is critically low, signifying that short-term liabilities far exceed short-term assets.
- VALUATION — EV/EBITDA of 41.33x is extremely high, suggesting a premium is priced in relative to pre-interest earnings.
- MARGIN — Gross margin data lacks a prior-year comparison, making it impossible to assess whether the 87.6% figure is improving or deteriorating.
- FUNDAMENTAL — Data completeness is suboptimal, with market cap, revenue, and free cash flow missing, limiting the depth of financial analysis....
The company maintains a strong gross margin of 87.6%, suggesting significant pricing power or a low cost of delivering services, though a prior-year comparison is unavailable for trend analysis. Net margin stands at a healthy 33.3%, indicating efficient conversion of revenue to profit. However, the balance sheet is highly leveraged, with a Debt/Equity ratio of 5.8x, a figure that signals elevated financial risk and dependency on debt financing. This risk is compounded by a weak liquidity position, as the Current Ratio is a low 0.39x, meaning current liabilities exceed current assets and could pressure short-term obligations. Free cash flow and FCF yield are unavailable, preventing a direct assessment of cash generation. The substantial debt load makes the company reliant on continued access to capital markets and constrains its ability to fund operations or dividends without strain.
- DEBT — Debt/Equity of 5.8x indicates a highly leveraged balance sheet and elevated financial risk. - LIQUIDITY — Current ratio of 0.39x is critically low, signifying that short-term liabilities far exceed short-term assets. - VALUATION — EV/EBITDA of 41.33x is extremely high, suggesting a premium is priced in relative to pre-interest earnings. - MARGIN — Gross margin data lacks a prior-year comparison, making it impossible to assess whether the 87.6% figure is improving or deteriorating. - FUNDAMENTAL — Data completeness is suboptimal, with market cap, revenue, and free cash flow missing, limiting the depth of financial analysis.
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