Charles Schwab Stock To $67?

Our multi-factor assessment suggests that it may be time to sell SCHW stock. We have, overall, a pessimistic view of the stock, and a price of $67 may not be out of reach. We believe there is not much to fear in SCHW stock given its overall Strong operating performance and financial condition. Hence, despite its Moderate valuation, this makes the stock look Risky.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $169 Bil in market cap, Charles Schwab provides retail brokerage, investment advisory, banking, trust, retirement plan, custodial, trading, and corporate brokerage services with comprehensive support and retirement solutions.

[1] Valuation Looks Moderate

This table highlights how SCHW is valued vs broader market. For more details see: SCHW Valuation Ratios

[2] Growth Is Strong

• Charles Schwab has seen its top line grow at an average rate of 5.6% over the last 3 years
• Its revenues have grown 22% from $20 Bil to $24 Bil in the last 12 months
• Also, its quarterly revenues grew 18.9% to $6.3 Bil in the most recent quarter from $5.3 Bil a year ago.

This table highlights how SCHW is growing vs broader market.

[3] Profitability Appears Very Strong

• With cash flow margin of 38.9%, it generated nearly $9.3 Bil in operating cash flow over this period
• For the same period, SCHW generated nearly $8.9 Bil in net income, suggesting net margin of about 37.0%

This table highlights how SCHW profitability vs broader market.

[4] Financial Stability Looks N/A

• SCHW Debt was $31 Bil at the end of the most recent quarter, while its current Market Cap is $169 Bil. This implies Debt-to-Equity Ratio of 18.2%
• SCHW Cash (including cash equivalents) makes up $108 Bil of $491 Bil in total Assets. This yields a Cash-to-Assets Ratio of 22.0%

[5] Downturn Resilience Is Very Weak

SCHW has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• SCHW stock fell 50.4% from a high of $95.53 on 14 January 2022 to $47.37 on 4 May 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 July 2025
• Since then, the stock increased to a high of $107.21 on 9 February 2026 , and currently trades at $95.41

2020 Covid Pandemic

• SCHW stock fell 42.0% from a high of $49.00 on 16 January 2020 to $28.43 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 November 2020

2008 Global Financial Crisis

• SCHW stock fell 56.4% from a high of $26.00 on 30 September 2008 to $11.34 on 5 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 31 December 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read SCHW Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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