The Charles Schwab Corporation
SCHW
$93.77
+1.53%
The Charles Schwab Corporation is a major retail-oriented financial services company operating in the capital markets industry. It is defined by its dominant position in registered investment advisor custody and its diversified revenue streams from banking and asset management.
SCHW
The Charles Schwab Corporation
$93.77
Related headlines
Investment Opinion: Should I buy SCHW Today?
Based on a synthesis of the provided data, Schwab warrants a 'Buy' rating for investors with a medium-to-long-term horizon. The assessment is driven by its strong fundamental improvement—evident in margin expansion and robust cash flow—coupled with valuation metrics (forward P/E of 13.8, PEG of 0.36) that appear compelling relative to its growth profile. While near-term sector sentiment is a headwind, the company's entrenched market position and financial health provide a solid foundation for recovery and growth as conditions normalize.
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SCHW 12-Month Price Forecast
The quantitative data supports a bullish stance due to attractive valuation relative to growth and strong profitability, though confidence is tempered by recent price volatility and sector headwinds noted in the news.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Charles Schwab Corporation's 12-month outlook, with a consensus price target around $121.90 and implied upside of +30.0% versus the current price.
Average Target
$121.90
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$75 - $122
Analyst target range
Analyst consensus data, such as a target price or ratings distribution, is not provided in the inputs. The available data shows only two analysts providing estimates, with an average EPS estimate of $9.65. Recent institutional ratings from firms like Barclays, UBS, and TD Cowen are consistently positive, with actions of 'Overweight' or 'Buy'. However, without a comprehensive consensus summary, it is stated that no sufficient analyst coverage data is available for a full summary.
Bulls vs Bears: SCHW Investment Factors
Schwab presents a compelling mix of strong fundamentals, improving profitability, and an attractive valuation against a backdrop of sector volatility and macroeconomic sensitivity. The company's dominant market position and financial strength are positive, but near-term performance may be challenged by market sentiment and interest rate dynamics.
Bullish
- Strong Profitability Expansion: Net income margin surged to 34.3% in Q4 2025 from 27.7% a year earlier.
- Robust Free Cash Flow: TTM free cash flow of $8.76B provides significant financial flexibility.
- Attractive Valuation Metrics: Forward P/E of 13.8 and PEG ratio of 0.36 suggest undervaluation.
- Dominant Market Position: Leader in RIA custody with over 40% market share and $11.9T in client assets.
Bearish
- Recent Price Volatility: Sharp pullback from $107 high to ~$94, indicating market uncertainty.
- Sector Headwinds: Brokerage sector facing 'AI-phobia' and valuation compression per news.
- Interest Rate Sensitivity: Revenue and margins are sensitive to changes in interest rates.
- Recent Underperformance: Stock down 5.94% over last 3 months, underperforming S&P 500.
SCHW Technical Analysis
Overall, the stock has shown a volatile but positive trend over the last six months, gaining 1.38% and significantly outperforming the S&P 500 by 4.20 percentage points. The price reached a high near $107 in early February 2026 before a sharp pullback. In the short term, the stock has declined 1.28% over the past month, though this still represents relative strength compared to the S&P 500's 5.25% drop. Over the last three months, the stock is down 5.94%, underperforming the broader market's 4.63% decline. Currently, the price of $93.98 sits near the middle of its 52-week range of $65.88 to $107.50, representing a recovery from the lows but well off the recent highs.
Beta
0.92
0.92x market volatility
Max Drawdown
-14.9%
Largest decline past year
52-Week Range
$66-$108
Price range past year
Annual Return
+19.3%
Cumulative gain past year
| Period | SCHW Return | S&P 500 |
|---|---|---|
| 1m | -1.5% | -3.6% |
| 3m | -7.7% | -4.0% |
| 6m | -0.3% | -2.0% |
| 1y | +19.3% | +16.2% |
| ytd | -7.7% | -3.8% |
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SCHW Fundamental Analysis
Revenue growth has been positive, with Q4 2025 revenue of $7.17 billion representing a 7.77% year-over-year increase from Q4 2024. Profitability has improved significantly, as the net income margin expanded to 34.3% in Q4 2025 from 27.7% a year earlier. The company maintains a moderate debt-to-equity ratio of 0.645, indicating a manageable capital structure. Free cash flow over the trailing twelve months is a strong $8.76 billion, providing ample financial flexibility for dividends and share repurchases. Operational efficiency is solid, with a return on equity (ROE) of 17.92% and a return on assets (ROA) of 1.82%, reflecting effective use of shareholder capital and assets.
Quarterly Revenue
$7.2B
2025-12
Revenue YoY Growth
+0.07%
YoY Comparison
Gross Margin
+0.81%
Latest Quarter
Free Cash Flow
$8.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SCHW Overvalued?
Given the company's positive net income, the primary valuation metric is the trailing P/E ratio of 20.0. The forward P/E of 13.8 is lower, suggesting expectations for earnings growth. The PEG ratio of 0.36, based on trailing earnings, indicates the stock may be undervalued relative to its growth prospects. Peer comparison data is not available in the provided inputs, so a relative valuation against industry averages cannot be performed.
PE
20.0x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 15x~30x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.9x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risks for Schwab are macroeconomic and sector-specific. As a financial services firm, its revenue is highly sensitive to interest rates, which impact net interest income. A decline in rates could pressure profitability. Recent news highlights a sector-wide de-rating due to 'AI-phobia,' impacting valuations for brokerage and asset management firms, suggesting potential for continued multiple compression. Furthermore, while the company has a strong balance sheet (D/E of 0.645), a significant market downturn could affect client asset levels and trading activity, impacting fee-based revenues. The stock's recent volatility, with a sharp drop from its 52-week high, reflects these market concerns. Operational risks include integration challenges from past acquisitions and competitive pressures in the wealth management space.
FAQ
The key risks are macroeconomic and sector-specific. Schwab's profitability is sensitive to interest rates; declines could hurt net interest income. The entire brokerage and asset management sector is facing valuation pressure, as noted in recent news about 'AI-phobia.' Additionally, a broader market downturn could reduce client trading activity and asset levels, impacting fee revenue. The stock has also shown high volatility recently.
The 12-month outlook presents a base case target range of $95 to $105, derived from current valuation multiples and analyst EPS estimates averaging $9.65. The bull case ($107.5-$117) depends on a sector sentiment recovery and earnings beats, while the bear case ($65.88-$85) involves a retest of 52-week lows if macroeconomic risks materialize. The AI assessment assigns a 55% probability to the base case scenario.
Based on the provided data, SCHW stock appears undervalued. The key signal is the PEG ratio of 0.36, which is well below 1.0 and indicates the price is low relative to its earnings growth rate. Furthermore, the forward P/E of 13.8 is substantially lower than the trailing P/E of 20.0, implying the market expects future earnings growth that is not fully reflected in the current price.
For investors seeking exposure to a leading financial services firm with improving fundamentals, SCHW appears to be a good buy. The stock's forward P/E of 13.8 and PEG ratio of 0.36 suggest it is undervalued relative to its earnings growth potential. However, buyers should be prepared for volatility, as the sector is currently out of favor and the stock has pulled back significantly from recent highs.
SCHW is more suitable for a long-term investment horizon. Its value proposition is based on strong fundamentals, market dominance, and an attractive valuation, which may take time to be fully recognized by the market given current sector headwinds. Short-term traders may be challenged by the stock's recent volatility and sensitivity to interest rate news.