SCHWSCHWAB CHARLES CORP
Security Brokers, Dealers & Flotation Companies
- Revenue
- $23.9B
- 22% YoY
- Operating margin
- —
- EBITDA
- —
- Market cap
- $152.3B
- Employees
- 33,000
- $725K revenue each
- Net debt / EBITDA
- —
- −$17.9B net debt
- AI in 10-K
- 0.5
- mentions per 10K words
Takeover score 6 of 13
Fixable underperformance 3 of 7
- TSR below peersYes3 of 5 years3+ of last 5 years
- High CEO pay despite TSRYes$24M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo1052× net incomeCash flow under 80% of net income
- Dilutive SBCNo1% of revenueOver 10% of revenue
- Payouts exceed cash flowYes104% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo2% of assetsOver 40% of assets
- Shareholder dissentNo93% lowest supportAny vote under 80% support
Buyer economics 2 of 4
- Low revenue per employeeYes$725K · 17th pctBottom quartile of its SIC industry
- Quiet on AIYes0.5 per 10K words · 21st pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedNo$152.3B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$341M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $18.5B | $20.8B | $18.8B | $19.6B | $23.9B | 22% |
| Net income | $6M | $7M | $5M | $6M | $9M | 49% |
| Operating cash flow | $2.1B | $2.1B | $19.6B | $2.7B | $9.3B | 249% |
| Capex | $916M | $971M | $700M | $620M | $548M | 12% |
| Stock-based comp | $254M | $366M | $320M | $337M | $317M | 5.9% |
| Buybacks | $0 | $3.4B | $2.8B | $0 | $7.3B | |
| Dividends | $1.8B | $2.1B | $2.3B | $2.3B | $2.3B | 2.4% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Feb 12, 2025 | TORONTO DOMINION BANK | SCHEDULE 13D/A | 0.1% | Passive |
| Aug 23, 2024 | TORONTO DOMINION BANK | SC 13D/A | 7.6% | Passive |
| Feb 27, 2023 | Schwab Charles R. | SC 13D/A | 6.1% | Passive |
| Aug 3, 2022 | TORONTO DOMINION BANK | SC 13D/A | 9.6% | Passive |
Insider trading
- Open-market buys, 12 mo
- $2M · 1
- Open-market sells, 12 mo
- $342M · 91
- Net
- −$341M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $19M | $27M | 201 | 231 |
| FY2024 | $26M | $29M | 147 | 183 |
| FY2023 | $24M | $4M | 135 | 143 |
| FY2022 | $24M | $58M | 160 | 126 |
| FY2021 | $22M | $42M | 160 | 140 |