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Charles Schwab Corporation SCHW

Charles Schwab Corporation scores good on business quality (6.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$96.70Oct 10, 2026
Business qualityGood
Next earningsOct 15, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What Charles Schwab Corporation does

    Charles Schwab makes money by providing brokerage, wealth management, and banking services to individual investors and independent financial advisors, collecting fees on assets and net interest from client cash. The company focuses on scaling its integrated wealth ecosystem to capture more client assets heading into upcoming earnings reports.

  2. What it does best

    Schwab dominates low-cost retail brokerage and advisor services, commanding an 87.8% gross margin that outpaces peers like Morgan Stanley at 56.7% and Goldman Sachs at 41.8% due to massive asset scale.

  3. The main risk

    Net debt sits at $240.7 billion against $46.0 billion in cash, exposing earnings to prolonged interest rate pressures that squeeze net interest margins if client cash sorting intensifies.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin sits at 44.0%, placing it in the top decile of its sector at the 90th percentile, meaning profitability scales efficiently with asset growth.

MoatFair

Scale and advisor lock-in form a localized moat, ranking in the 48th overall score tier due to intense competition from low-cost platforms.

GrowthSlow

Revenue grew 6.4% to $29.7B, sitting in the middle of the pack at the 40th sector percentile for growth.

Financial healthStrong

Debt-to-equity is 5.8x alongside $10.8B in free cash flow, getting stronger as cash generation recovers from prior lows.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

6 sold $125.4M outside pre-planned sales.

Our sealed record on SCHW

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is SCHW a good business?

Charles Schwab Corporation scores good on the Cluenex quality check (6.1 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health strong.

Are insiders buying SCHW?

In the last 90 days of SEC Form 4 filings: 6 sold $125.4M outside pre-planned sales.

When does SCHW report earnings?

Oct 15, 2026, before the open.

For members

See SCHW today

  • Today's verdict on SCHW, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Charles Schwab Corporation (SCHW)”, https://cluenex.com/stocks/schw/, data as of Oct 10, 2026.