# The Charles Schwab Corporation (SCHW) — Stock CV

The Charles Schwab Corporation is a $168B financial services company. Revenue grew 20.3% over the last year, and it keeps 39¢ of every dollar of sales as profit. It trades at 16.6× earnings — in the cheapest third of its own history.

> Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025.

## Identity

- **Ticker**: SCHW
- **Sector**: Financial Services
- **Industry**: Security Brokers, Dealers & Flotation Companies
- **Headquarters**: WESTLAKE, TX
- **Employees**: 33 700
- **Website**: https://www.aboutschwab.com
- **Market cap**: $168B
- **Last price**: $96.87
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $26.0B
- **Net income**: $10.1B
- **Free cash flow**: $10.8B
- **Net cash**: $23.8B
- **P/E**: 16.6
- **Revenue growth (YoY)**: 20.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 62 |
| Growth | 72 |
| Profitability | 95 |
| Health | 53 |
| Quality | 87 |
| Moat | 70 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +20.3% YoY
- [x] Profitable — $10.1B TTM
- [x] Profit growing — +10.1% YoY
- [x] Generates cash — $10.8B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $168B market cap
- [ ] Not printing shares — +26.1% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 0.4 — distress
- [x] Pays a dividend — yield 1.44%
- [x] Valuation not extreme — P/E 16.6

## Experience (career milestones)

- **FY2025** — Best year on record: $8.85B net income
- **Jul 1, 2020** — The company acquired Wasmer, Schroeder & Company, an independent investment manager of fixed income…
- **2020** — The company began allowing investors to purchase fractional shares of companies listed on the S&P 500…
- **FY2018** — Revenue crossed $10B: $10.1B for the year
- **FY2018** — Became debt-free: cash now exceeds total debt
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $7.48B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2000** — The unit was renamed Schwab Capital Markets in 2000
- **1991** — The company acquired Mayer & Schweitzer, a market making firm, allowing Schwab to execute its customers'…
- **1984** — The company launched 140 no-load mutual funds
- **1983** — The first to offer round-clock order entry and quotation, it was purchased by Bank of America in 1983 for $55 million
- **1982** — Schwab became the first to offer 24/7 order entry and quote service, its first international office was…
- **1972** — In November of that year, Schwab and four others purchased all the stock from Commander Industries, Inc
- **1971** — The firm was incorporated in California as First Commander Corporation, a wholly owned subsidiary of…
- **1971** — Founded as First Commander Corporation in 1971 and renamed to Charles Schwab & Co

## Strengths

- High gross margin (87.8%)
- Strongly profitable — 38.8% net margin
- Revenue growing 20.3% year over year
- Strong cash conversion — FCF is 41.5% of revenue
- Net cash position after subtracting debt from cash

## Watch-outs

- Altman Z-Score 0.42 — elevated financial-distress risk

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $18.5B | $5.86B | $1.20B |
| FY2022 | $20.8B | $7.18B | $1.09B |
| FY2023 | $18.8B | $5.07B | $18.9B |
| FY2024 | $19.6B | $5.94B | $2.05B |
| FY2025 | $23.9B | $8.85B | $8.76B |

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Source: https://stockcv.com/SCHW — derived from company filings; may be delayed or incomplete. Information, not investment advice.