Company Overview
Charles Schwab Corp is a US-based financial services company providing brokerage, banking, and wealth management solutions. It generates revenue from trading, advisory, and deposit-based activities. The company’s shares are listed on the New York Stock Exchange. Its market capitalization is about USD 165 billion.
Analysis of recent data
FundamentalsIn reported USD figures, Charles Schwab Corp recorded revenue of 15.50 billion and net income of 8.85 billion for 2025. Revenue growth was slightly negative at -0.002 year over year, indicating a pause after prior expansion. Gross margin reached 86.44%, while operating and net profit margins were 41.41% and 31.99%, respectively.
Return on equity stood at 17.9%, reflecting strong profitability relative to shareholder capital. The company held 46.03 billion in cash against total debt of 29.10 billion, suggesting a solid balance sheet. Depreciation and amortization were 850 million, while EBIT and capital expenditures were not provided, limiting full cash flow analysis.
Valuation
DCF / MultiplesAt a market price of USD 93.99, the shares trade below the value range implied by the DCF model. The model’s fair value estimates are 137.03 in the bear case, 218.92 in the base case, and 327.91 in the bull case.
With a trailing P/E of 18.60 and ROE of 17.9%, the valuation suggests investors expect steady but not aggressive growth. The DCF range indicates potential upside if profitability and capital efficiency remain consistent.
Conclusion
TakeawaySchwab’s profitability and balance sheet strength stand out among peers. The market seems cautious despite consistent returns on equity. Long-term compounding could reward patient investors. Monitoring revenue trends and cost discipline will be key going forward.