# Charles Schwab (SCHW.US)

Canonical: https://gigainvestors.com/s/SCHW

Analysis as of: 2026-10-16T07:31:48.751Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $94.16 per share; close as of 2026-10-15.

Estimated value: low $43.04 per share, central $53.80 per share, high $71.74 per share. Buy at or below the central value $53.80 per share. Valuation as of 2026-10-16T07:31:48.751Z; scenarios are not confidence intervals.

Expected annual return: 8.3% at the stated quote. About 8.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.31×

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Net income; fiscal year observations.

- FY2016: $1.7B

- FY2017: $2.2B

- FY2018: $3.3B

- FY2019: $3.5B

- FY2020: $3.0B

- FY2021: $5.4B

- FY2022: $6.6B

- FY2023: $4.6B

- FY2024: $5.5B

- FY2025: $8.4B

### moat: pass

- Tangible common book per share

- Bank / P&C ROTE, median of available years: 20.8%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 14.2%

- Years with reported combined ratio: 0

- ROIC, median of available years: 8.5%

- ROIC, second-lowest year: 5.1%

- Typical minus recent gross margin: 19.9 pp

- Years with nonpositive capital: 10

- Capital spending / revenue: 4.5%

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 14.2%

- FY2017: 15.1%

- FY2018: 20.2%

- FY2019: 20.0%

- FY2020: 11.5%

- FY2021: 21.5%

- FY2022: >100%

- FY2023: 40.2%

- FY2024: 28.1%

- FY2025: 35.9%

### economics: pass

- Tangible common book per share

- Book value per share + reinvested dividends, annualized return: 15.9%

- Book return interval: 10 years

- Starting book value per share: $7.94

- Ending book value per share: $12.98

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $34B

- Net income, five-year total: $33B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -178.8 pp

- Working capital / revenue, change between three-year averages: -1239.4 pp

- Working capital / revenue, final three-year average: -93.6%

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 20.4%

- FY2017: 20.5%

- FY2018: 19.4%

- FY2019: 16.6%

- FY2020: 44.6%

- FY2021: -23.2%

- FY2022: -66.8%

- FY2023: 132.2%

- FY2024: 88.0%

- FY2025: 34.2%

### management: fail

- Tangible common book per share

- ordinary share count growth exceeds 2% annually in both the full and five-year windows

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 4.7%

- Share growth excluding flagged crisis recapitalisations: 3.1%

- Five-year share growth excluding flagged crisis recapitalisations: 4.7%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 0.94×

- Book value created per share: $5.04

- Earnings retained per share after dividends and buybacks: $5.36

- Market cap gain: $125B

- Cumulative retained earnings: $31B

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.0%

- Per-share value change: $1.83

- Per-share value, starting three-year median: $1.41

- Per-share value, ending three-year median: $3.24

- Buybacks concentrated in cheaper years (correlation): 0.57

- Average buyback yield: 2.4%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $21B

- Cumulative net income, 10 years: $48B

- ROIC, first three-year median: 9.9%

- ROIC, last three-year median: 6.4%

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 101

- FY2017: 102

- FY2018: 103

- FY2019: 99

- FY2020: 108

- FY2021: 143

- FY2022: 143

- FY2023: 138

- FY2024: 138

- FY2025: 136

### accounting: pass

- Financial accounting warning count: 0

- Deposits, annualized growth: 7.0%

- Known restatement years: 0

- Years loan growth exceeded twice deposit growth: 1

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.39×

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Gayner](https://gigainvestors.com/MKL): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price is 7.1 times annual sales · "Charles Schwab Raises Revenue Outlook, Details AI Plans" (finance.yahoo.com, May 2026) · net income +53.7%

Story as of 2026-10-16T09:59:33.499Z; price observation 2026-10-15.

The price is 7.1 times annual sales

- 2025-04-17: Charles Schwab’s Profit Surges, Boosted by Pickup in Trading ([finance.yahoo.com](https://finance.yahoo.com/m/f49618c4-2551-3da3-b3b8-6e5633c27cb7/charles-schwab%E2%80%99s-profit.html))

- 2025-06-13: Charles Schwab stock falls after monthly report shows drop in new accounts ([finance.yahoo.com](https://finance.yahoo.com/news/charles-schwab-stock-falls-monthly-135522691.html))

- 2025-07-18: Charles Schwab profit surges on trading boom, asset growth ([investing.com](https://www.investing.com/news/stock-market-news/charles-schwab-profit-surges-on-trading-boom-asset-growth-4141852))

- 2026-04-16: Charles Schwab Misses First-Quarter Revenue View Despite Client Asset Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/charles-schwab-misses-first-quarter-144926123.html))

- 2026-06-15: Schwab Stock Gains 2.7% as Client Assets, NNA Surge in May ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/schwab-stock-gains-2-7-121700876.html))

- 2026-07-21: Schwab Gains on Retail Trading Frenzy, Forecasts Long-Short Strategy Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/schwab-gains-retail-trading-frenzy-175608551.html))

### Net income · FY2025

net income +53.7%; source https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm; observed 2026-02-25.

- FY2016: $1.7B 

- FY2017: $2.2B 

- FY2018: $3.3B 

- FY2019: $3.5B 

- FY2020: $3.0B 

- FY2021: $5.4B 

- FY2022: $6.6B 

- FY2023: $4.6B 

- FY2024: $5.5B 

- FY2025: $8.4B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are USD 23.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm#000031670926000009 (filed 2026-02-25); FY2025: revenue 23921000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SCHW.US: 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.

### Why customers stay

It earns 20.8% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on tangible equity observations [[2016,0.14233308877476156],[2017,0.15142043481280823],[2018,0.20178203418596194],[2019,0.20037506393135193],[2020,0.11533505154639176],[2021,0.21460602178090968],[2022,1.0767607919506654],[2023,0.4023018345448252],[2024,0.2810672139558748],[2025,0.3585058352500213]]; median 0.2081940279834358. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 9.8 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,486000000],[2017,592000000],[2018,787000000],[2019,1060000000],[2020,1280000000],[2021,1822000000],[2022,2110000000],[2023,2276000000],[2024,2275000000],[2025,2329000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 9804000000 USD.

### What could break it

"A significant change in client cash allocations could negatively impact our income." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm (filed 2026-02-25); A significant change in client cash allocations could negatively impact our income.

### What the price says

The price is 7.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 94.16 USD; reporting-to-trading FX 1; FY2025 annual sales per share 13.223327805417357; price multiple 7.120749132561348. FY2025 cash earnings/share 5.343283582089552. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $31.70 per share

- 2016-11: $38.66 per share

- 2016-12: $39.47 per share

- 2017-01: $41.24 per share

- 2017-02: $40.41 per share

- 2017-03: $40.81 per share

- 2017-04: $38.85 per share

- 2017-05: $38.75 per share

- 2017-06: $42.96 per share

- 2017-07: $42.90 per share

- 2017-08: $39.90 per share

- 2017-09: $43.74 per share

- 2017-10: $44.84 per share

- 2017-11: $48.79 per share

- 2017-12: $51.37 per share

- 2018-01: $53.34 per share

- 2018-02: $53.02 per share

- 2018-03: $52.22 per share

- 2018-04: $55.68 per share

- 2018-05: $55.62 per share

- 2018-06: $51.10 per share

- 2018-07: $51.06 per share

- 2018-08: $50.79 per share

- 2018-09: $49.15 per share

- 2018-10: $46.24 per share

- 2018-11: $44.80 per share

- 2018-12: $41.53 per share

- 2019-01: $46.77 per share

- 2019-02: $46.01 per share

- 2019-03: $42.76 per share

- 2019-04: $45.78 per share

- 2019-05: $41.61 per share

- 2019-06: $40.19 per share

- 2019-07: $43.22 per share

- 2019-08: $38.27 per share

- 2019-09: $41.83 per share

- 2019-10: $40.71 per share

- 2019-11: $49.50 per share

- 2019-12: $47.56 per share

- 2020-01: $45.55 per share

- 2020-02: $40.75 per share

- 2020-03: $33.62 per share

- 2020-04: $37.72 per share

- 2020-05: $35.91 per share

- 2020-06: $33.74 per share

- 2020-07: $33.15 per share

- 2020-08: $35.53 per share

- 2020-09: $36.23 per share

- 2020-10: $41.11 per share

- 2020-11: $48.78 per share

- 2020-12: $53.04 per share

- 2021-01: $51.54 per share

- 2021-02: $61.72 per share

- 2021-03: $65.18 per share

- 2021-04: $70.40 per share

- 2021-05: $73.85 per share

- 2021-06: $72.81 per share

- 2021-07: $67.95 per share

- 2021-08: $72.85 per share

- 2021-09: $72.84 per share

- 2021-10: $82.03 per share

- 2021-11: $77.39 per share

- 2021-12: $84.10 per share

- 2022-01: $87.70 per share

- 2022-02: $84.46 per share

- 2022-03: $84.31 per share

- 2022-04: $66.33 per share

- 2022-05: $70.10 per share

- 2022-06: $63.18 per share

- 2022-07: $69.05 per share

- 2022-08: $70.95 per share

- 2022-09: $71.87 per share

- 2022-10: $79.67 per share

- 2022-11: $82.54 per share

- 2022-12: $83.26 per share

- 2023-01: $77.42 per share

- 2023-02: $77.92 per share

- 2023-03: $52.38 per share

- 2023-04: $52.24 per share

- 2023-05: $52.69 per share

- 2023-06: $56.68 per share

- 2023-07: $66.10 per share

- 2023-08: $59.15 per share

- 2023-09: $54.90 per share

- 2023-10: $52.04 per share

- 2023-11: $61.32 per share

- 2023-12: $68.80 per share

- 2024-01: $62.92 per share

- 2024-02: $66.78 per share

- 2024-03: $72.34 per share

- 2024-04: $73.95 per share

- 2024-05: $73.28 per share

- 2024-06: $73.69 per share

- 2024-07: $65.19 per share

- 2024-08: $65.10 per share

- 2024-09: $64.81 per share

- 2024-10: $70.83 per share

- 2024-11: $82.76 per share

- 2024-12: $74.01 per share

- 2025-01: $82.72 per share

- 2025-02: $79.53 per share

- 2025-03: $78.28 per share

- 2025-04: $81.40 per share

- 2025-05: $88.34 per share

- 2025-06: $91.24 per share

- 2025-07: $97.73 per share

- 2025-08: $95.84 per share

- 2025-09: $95.47 per share

- 2025-10: $94.52 per share

- 2025-11: $92.73 per share

- 2025-12: $99.91 per share

- 2026-01: $103.92 per share

- 2026-02: $95.20 per share

- 2026-03: $93.98 per share

- 2026-04: $91.64 per share

- 2026-05: $87.35 per share

- 2026-06: $92.27 per share

- 2026-07: $105.24 per share

- 2026-08: $109.82 per share

- 2026-09: $97.74 per share

- 2026-10: $95.94 per share

## Annual estimated value (USD per share)

- FY2016: low $15.02 per share, central $18.78 per share, high $25.04 per share

- FY2017: low $16.92 per share, central $21.15 per share, high $28.20 per share

- FY2018: low $18.87 per share, central $23.59 per share, high $31.46 per share

- FY2019: low $20.57 per share, central $25.71 per share, high $34.28 per share

- FY2020: low $31.66 per share, central $39.57 per share, high $52.76 per share

- FY2021: low $24.52 per share, central $30.65 per share, high $40.87 per share

- FY2022: low $12.11 per share, central $15.14 per share, high $20.19 per share

- FY2023: low $20.91 per share, central $26.14 per share, high $34.85 per share

- FY2024: low $35.86 per share, central $44.82 per share, high $59.76 per share

- FY2025: low $40.70 per share, central $50.87 per share, high $67.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:33.892Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/316709/000031670926000009/schw-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.