Fact based stock research
Charles Schwab (NYSE:SCHW)

US8085131055

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Charles Schwab stock research in summary

schwab.com

ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Charles Schwab (Investment Banking & Brokerage, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Charles Schwab are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), and are riskily financed (Safety Rank of 31, which means above-average debt burdens) but show above-average growth (Growth Rank of 73). ...read more

RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Charles Schwab's financial characteristics. As the company Charles Schwab shows low value with an Obermatt Value Rank of 29 (71% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 73% of comparable companies (Obermatt Growth Rank is 73). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 31 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Charles Schwab, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	73
Safety Rank	31
Combined Rank	38

Country	USA
Industry	Investment Banking & Brokerage
Index	D.J. US Investing, S&P 500
Size class	XX-Large

26-Jun-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Charles Schwab

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	6	8	39	29
GROWTH
GROWTH	100	33	85	73
SAFETY
SAFETY	9	13	21	31
SENTIMENT
SENTIMENT	48	14	81	^new
360° VIEW
360° VIEW	18	1	21	^new

Most recent update of the stock research: 26-Jun-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Charles Schwab is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	6	8	39	29
GROWTH
GROWTH	100	33	85	73
SAFETY
SAFETY	9	13	21	31
COMBINED
COMBINED	14	1	9	38

Last update of combined financial performance: 26-Jun-2025. Stock analysis on combined financial performance: The higher the rank of Charles Schwab the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), Charles Schwab shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Charles Schwab. Price-to-Sales is 23 which means that the stock price compared with what market professionals expect for future profits is higher than 77% of comparable companies, indicating a low value concerning Charles Schwab's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 49, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Charles Schwab. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 37 and Dividend Yield, which is lower than 71% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on Charles Schwab's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Charles Schwab? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Charles Schwab? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Charles Schwab may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	9	16	25	23
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	13	34	39	37
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	32	30	53	49
DIVIDEND YIELD
DIVIDEND YIELD	27	34	45	29
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	6	8	39	29

Last update of Value Rank: 26-Jun-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Charles Schwab; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Charles Schwab shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Charles Schwab. Sales Growth has a rank of 68, which means that, currently, professionals expect the company to grow more than 68% of its competitors. Profit Growth with a rank of 96 is also above average. But Capital Growth has only a rank of 46, and Stock Returns with 47 are also below-average. Stock returns for Charles Schwab have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Charles Schwab. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	58	48	86	68
PROFIT GROWTH
PROFIT GROWTH	87	17	86	96
CAPITAL GROWTH
CAPITAL GROWTH	64	90	89	46
STOCK RETURNS
STOCK RETURNS	96	3	41	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100	33	85	73

Last update of Growth Rank: 26-Jun-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Charles Schwab.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 31 (better than 31% compared with alternatives), the company Charles Schwab has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Charles Schwab is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Charles Schwab and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 17, meaning the company has an above-average debt-to-equity ratio. It has more debt than 83% of its competitors. Liquidity is also on the riskier side with a rank of 11, meaning the company generates less profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 31 (worse than 69% compared with alternatives), Charles Schwab has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Charles Schwab are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Charles Schwab and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	9	5	11	17
REFINANCING
REFINANCING	78	83	3	85
LIQUIDITY
LIQUIDITY	4	10	10	11
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	9	13	21	31

Last update of Safety Rank: 26-Jun-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Charles Schwab and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	80	79	^new
OPINIONS CHANGE
OPINIONS CHANGE	45	15	89	^new
PRO HOLDINGS
PRO HOLDINGS	14	10	70	^new
MARKET PULSE
MARKET PULSE	72	24	48	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	48	14	81	^new

Last update of Sentiment Rank: 26-Jun-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Charles Schwab.
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