Charles Schwab Corp.

Charles Schwab Corp.

SCHW

Market Cap$138.1B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Charles Schwab Corp.Charles Schwab Corp.23.41.34%14%12.80.9

Earnings Call Q1 2025

April 17, 2025 - AI Summary

Strong Growth in Assets and Client Engagement: In Q1 2025, Schwab experienced a significant increase in core net new assets (NNA), reaching $138 billion, which marks a 44% growth year-over-year. This was driven by the active opening of 1.2 million new accounts and high trading volumes, with daily average trades increasing by 24% to 7.4 million. The firm expects this growth trend to continue, especially as clients seek to capitalize on market volatility.
Robust Financial Performance: Schwab reported record total revenue of $5.6 billion for Q1 2025, reflecting an 18% increase year-over-year. Adjusted earnings per share surged by 41% compared to the same period last year, reaching $1.04. The company maintains a strong adjusted pretax profit margin of 46.2%, showcasing the effectiveness of its business model and efficient expense management.
Outlook for Interest Rates and Trading Activity: The interest rate environment remains uncertain, with expectations of additional cuts to the Fed's target rate in the latter half of 2025. Despite this, Schwab anticipates net interest margin (NIM) to expand to the 2.55% to 2.65% range for the full year, bolstered by higher cash levels and increased trading volumes, which offset potential earnings impacts from reduced margin lending.

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Target Price by Analysts

8.6% downsideCharles Schwab Target Price DetailsTarget Price
$96.65

Current Fair Value

26.2% upside

Undervalued by 26.2% based on the discounted cash flow analysis.

Share Statistics

Market cap$138.10 Billion
Enterprise Value$141.30 Billion
Dividend Yield$1.02 (1.33946158896914%)
Earnings per Share$3
Beta0.9
Outstanding Shares1,828,000,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio23.43
PEG93.13
Price to Sales12.76
Price to Book Ratio4.03
Enterprise Value to Revenue12.76
Enterprise Value to EBIT-55.92
Enterprise Value to Net Income27
Total Debt to Enterprise0.22
Debt to Equity0.88

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Charles Schwab Corp.

2,020 employees
CEO: Walter Bettinger