NYSE · Financial Services

The Charles Schwab Corporation

SCHW · Capital Markets

$91.70

▼ -2.81 (-2.97%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Net Income Margin 38.2%

Fin. Health

F⤢

Years to Pay Off Debt 13.3 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.76x

Cash Flow

A⤢

Free Cash Flow $7.2B

CapEx % of Net Income 5.6%

Owner Earnings $3.0B

Cash Flow

Free Cash Flow $7.2B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 5.6%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $3.0B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About The Charles Schwab Corporation

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including money market funds, and certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It provides digital and software based trading platforms; research tools, and multichannel support, real-time market data, options trading; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was founded in 1971 and is headquartered in Westlake, Texas.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $159.5B

Enterprise Value $132.7B

P/E (TTM) 18.23

Dividend Yield 1.20%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 38.2%

Company Info

Sector Financial Services

Industry Capital Markets

Employees 33500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Charles Schwab Corporation at $91.70.

The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.

At $91.70, the stock trades at a 234% premium to its Graham Number of $27.44. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	N/A•	N/A
Operating Margin %	N/A•	N/A
Net Income %	38.2%▼	38.8%
Diluted EPS	1.37▲	1.33

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$493.3B	$491.0B	N/A
Total Debt	$33.1B▲	$31.0B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	13.34	12.59	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$7.2B▲	-$921M•	N/A
Owner Earnings	$3.0B	$3.0B	N/A
CapEx % of Net Income	5.6%	6.4%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Net Income From Continuing Operation Net Minority Interest	2,479,000	2,459,000
Reconciled Depreciation	333,000	333,000
Net Interest Income	3,144,000	3,172,000
Interest Expense	818,000	832,000
Interest Income	3,962,000	4,004,000
Normalized Income	2,479,000	2,459,000
Net Income From Continuing And Discontinued Operation	2,479,000	2,459,000
Diluted Average Shares	1,752,000	1,777,000
Basic Average Shares	1,746,000	1,772,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,397,000	2,367,000
Net Income Common Stockholders	2,397,000	2,367,000
Preferred Stock Dividends	82,000	92,000
Net Income	2,479,000	2,459,000
Net Income Including Noncontrolling Interests	2,479,000	2,459,000
Net Income Continuous Operations	2,479,000	2,459,000
Tax Provision	709,000	721,000
Pretax Income	3,188,000	3,180,000
Depreciation Amortization Depletion Income Statement	333,000	333,000
Depreciation And Amortization In Income Statement	333,000	333,000
Amortization	132,000	127,000
Amortization Of Intangibles Income Statement	132,000	127,000
Depreciation Income Statement	201,000	206,000
Selling General And Administration	1,913,000	1,745,000
Selling And Marketing Expense	101,000	115,000
General And Administrative Expense	1,812,000	1,630,000
Salaries And Wages	1,812,000	1,630,000
Total Revenue	6,482,000	6,336,000
Operating Revenue	6,482,000	6,336,000
Occupancy And Equipment	285,000	293,000
Professional Expense And Contract Services Expense	303,000	344,000
Other Non Interest Expense	460,000	441,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	336,068	315,864
Preferred Shares Number			54,000
Ordinary Shares Number	1,738,121	1,758,325
Share Issued	2,074,189	2,074,189
Net Debt			3,002,000
Total Debt	33,069,000	30,951,000
Tangible Book Value	22,760,000	23,478,000
Invested Capital	75,510,000	73,576,000
Net Tangible Assets	29,523,000	30,241,000
Capital Lease Obligations	30,000	37,000
Common Stock Equity	42,471,000	42,662,000
Preferred Stock Equity	6,763,000	6,763,000
Total Capitalization	69,787,000	71,576,000
Total Equity Gross Minority Interest	49,234,000	49,425,000
Stockholders Equity	49,234,000	49,425,000
Gains Losses Not Affecting Retained Earnings	-10,757,000	-10,983,000
Other Equity Adjustments	-10,757,000	-10,983,000
Treasury Stock	20,752,000	18,437,000
Retained Earnings	45,912,000	44,065,000
Additional Paid In Capital	28,047,000	27,996,000
Capital Stock	6,784,000	6,784,000
Common Stock	21,000	21,000
Preferred Stock	6,763,000	6,763,000
Total Liabilities Net Minority Interest	444,085,000	441,570,000
Derivative Product Liabilities	-97,000	11,000
Long Term Debt And Capital Lease Obligation	20,583,000	22,188,000
Long Term Capital Lease Obligation	30,000	37,000
Long Term Debt	20,553,000	22,151,000
Current Debt And Capital Lease Obligation	12,486,000	8,763,000
Current Debt	12,486,000	8,763,000
Other Current Borrowings	12,486,000	8,763,000
Payables And Accrued Expenses	146,093,000	142,030,000
Payables	146,093,000	142,030,000
Accounts Payable	146,093,000	142,030,000
Total Assets	493,319,000	490,995,000
Investments And Advances	189,535,000	200,252,000
Held To Maturity Securities	129,093,000	132,699,000
Available For Sale Securities		5,477,000	4,465,000
Goodwill And Other Intangible Assets	19,711,000	19,184,000
Other Intangible Assets	7,413,000	7,233,000
Goodwill	12,298,000	11,951,000
Net PPE	3,065,000	3,796,000
Accumulated Depreciation		-4,967,000	-4,459,000
Gross PPE		8,763,000	8,388,000
Leases		371,000	411,000
Construction In Progress		90,000	205,000
Other Properties		1,065,000	932,000
Machinery Furniture Equipment		5,017,000	4,804,000
Buildings And Improvements		1,976,000	1,801,000
Land And Improvements		244,000	235,000
Receivables	118,019,000	115,523,000
Other Receivables	11,808,000	7,976,000
Accounts Receivable	106,211,000	107,547,000
Other Short Term Investments	60,442,000	62,076,000
Cash And Cash Equivalents	44,975,000	46,030,000
Cash Cash Equivalents And Federal Funds Sold	84,753,000	88,961,000

Cash Flow

	2026	2025
Free Cash Flow	7,202,000	-921,000
Repurchase Of Capital Stock	-2,378,000	-2,765,000
Repayment Of Debt	-15,052,000	-19,766,000
Issuance Of Debt	17,137,000	23,104,000
Capital Expenditure	-140,000	-158,000
Interest Paid Supplemental Data	778,000	985,000
Income Tax Paid Supplemental Data	92,000	620,000
End Cash Position	73,280,000	69,661,000
Beginning Cash Position	69,661,000	54,865,000
Changes In Cash	3,619,000	14,796,000
Financing Cash Flow	-3,713,000	16,710,000
Cash Flow From Continuing Financing Activities	-3,713,000	16,710,000
Net Other Financing Charges	-129,000	-4,000
Proceeds From Stock Option Exercised	47,000	15,000
Cash Dividends Paid	-632,000	-564,000
Net Common Stock Issuance	-2,378,000	-2,765,000
Common Stock Payments	-2,378,000	-2,765,000
Net Issuance Payments Of Debt	2,085,000	3,338,000
Net Short Term Debt Issuance	5,543,000	357,000
Short Term Debt Payments	-11,594,000	-9,161,000
Short Term Debt Issuance	17,137,000	9,518,000
Net Long Term Debt Issuance	-3,458,000	2,981,000
Long Term Debt Payments	-3,458,000	-10,605,000
Long Term Debt Issuance	0	13,586,000
Investing Cash Flow	-10,000	-1,151,000
Cash Flow From Continuing Investing Activities	-10,000	-1,151,000
Net Other Investing Changes	-136,000	-139,000
Net Investment Purchase And Sale	3,864,000	3,527,000
Sale Of Investment	6,698,000	9,684,000
Purchase Of Investment	-2,834,000	-6,157,000
Net Business Purchase And Sale	-577,000
Purchase Of Business	-577,000
Net PPE Purchase And Sale	-140,000	-158,000
Purchase Of PPE	-140,000	-158,000
Operating Cash Flow	7,342,000	-763,000
Cash Flow From Continuing Operating Activities	7,342,000	-763,000
Change In Working Capital	4,045,000	-3,952,000
Change In Other Current Assets	7,243,000	3,901,000
Change In Payables And Accrued Expense	2,991,000	5,490,000
Change In Accrued Expense	-1,072,000	1,264,000
Change In Payable	4,063,000	4,226,000
Change In Account Payable	1,645,000	944,000
Change In Receivables	-6,189,000	-13,343,000
Changes In Account Receivables	-1,571,000	-10,881,000
Other Non Cash Items	183,000	204,000
Stock Based Compensation	138,000	58,000
Deferred Tax	-10,000	-36,000
Deferred Income Tax	-10,000	-36,000
Depreciation Amortization Depletion	333,000	333,000
Depreciation And Amortization	333,000	333,000
Amortization Cash Flow	132,000	127,000
Amortization Of Intangibles	132,000	127,000
Depreciation	201,000	206,000
Net Income From Continuing Operations	2,479,000	2,459,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $5.6B ▲ $6.5B +15.8%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: 34.1% ▲ 38.2% +4.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$6.5B/qtr (≈$25.9B ann.)

vs > $1.5B annualised revenue

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$7.2B

vs Positive

Operating Cash Flow

$7.3B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

3.2x

Net Assets: $49.2B

Asset Context — Capital Markets

For banks and financial companies, book value is the most meaningful valuation anchor because assets are primarily financial instruments with known market values. Price-to-Book below 1.0x historically signals stress or deep value in this sector.

Peers & Industry

No auto-detected peers for Capital Markets. You can manually compare SCHW against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

6.17%

Moderate — some alignment with shareholders

Return on Equity (ROE)

5.8%

Weak — poor returns on equity

Return on Assets (ROA)

0.5%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$9.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+6.8% YoY

Debt is roughly stable

Leadership Team

Charles Robert Schwab

Founder & Co-Chairman

Age 88

Pay: $3,540,089

0.143% of net income

Richard Andrew Wurster , CMT

CEO, President & Director

Age 51

Pay: $6,067,650

0.245% of net income

Michael Daniel Verdeschi

MD & Chief Financial Officer

Age 56

Pay: $3,767,676

0.152% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.66%	133,156,556
Vanguard Capital Management LLC	6.23%	108,353,995
Dodge & Cox Inc.	4.31%	75,002,881
JPMORGAN CHASE & CO	4.25%	73,848,142
State Street Corporation	4.18%	72,763,682
Price (T.Rowe) Associates Inc	2.80%	48,637,229
Geode Capital Management, LLC	2.22%	38,692,266
FMR, LLC	2.05%	35,688,169

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.77

Low volatility — more stable than the market

Short Interest

0.0% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.21x

Moderate leverage

Current Ratio

0.63x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $83.96 Current: $91.70 High: $107.50

Currently at 33% of 52-week range