The Charles Schwab CorporationSCHW
NYSE • Financial Services
$91.12
P/E
18.01
PEG
0.60
FCF Yield
—
Rev Growth YoY
+9.8% YoY
Gross Margin
88.8%
Health Score
7/10
D/E Ratio
0.63
Confidence
MEDIUM
Business Snapshot
Charles Schwab is a leading provider of brokerage, banking, and wealth management services, generating most of its revenue from asset management fees, net interest income, and trading commissions. It operates in the highly competitive US financial services market, standing as a dominant retail brokerage and one of the largest custodians for independent investment advisors. With TTM revenue of $28.32 billion, the company operates on a massive financial scale. Schwab's defining competitive advantage is its asset-gathering “vortex” model, where low-cost brokerage services attract client assets that are then monetised through cash sweep programs and advisory fees.
Financial Health
Gross margin improved sharply to 88.8% from 81.6% a year earlier, and net margin stands at a robust 33.3%, reflecting strong operating leverage in a scale-driven business. The balance sheet is healthy, with a debt/equity ratio of 0.63x, well within comfortable territory, though the current ratio of 0.53x indicates potential short-term liquidity pressure typical of brokerages with client cash holdings...
Risk Assessment
- DEBT / LIQUIDITY — The current ratio of 0.53x is well below the 1.0x threshold, indicating potential difficulty meeting short-term obligations, though this is partly structural for brokerage firms.
- VALUATION — EV/EBITDA of 40.88x is very high, suggesting the market is pricing in significant future growth or margin expansion that may not materialise.
- 52-WEEK POSITION — At $91.12, the stock trades well below the 52-week high of $107.50 and below the midpoint of $96.63, reflecting recent price weakness relative to the year’s peak.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....