Charles Schwab Corporation (NYSE:SCHW) is a leading financial services company known for its brokerage, banking, and financial advisory services. As a major player in the financial industry, Schwab competes with firms like Fidelity and E*TRADE. The company is set to release its quarterly earnings on July 15, 2025, with analysts estimating an earnings per share (EPS) of $1.06 and projected revenue of $5.64 billion.
Charles Schwab has a history of surpassing earnings expectations, as highlighted by its recent performance. Over the past two quarters, Schwab has delivered an average earnings surprise of 8.11%. In the most recent quarter, the company was expected to report earnings of $1.04 per share but delivered $1 per share. This consistent performance suggests a potential for another earnings beat in the upcoming report.
The company's financial metrics provide insight into its valuation and financial health. Schwab's price-to-earnings (P/E) ratio is approximately 25.85, indicating how much investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 6.40, while the enterprise value to sales ratio is around 6.59. These ratios help investors assess the company's market value relative to its revenue.
Schwab's debt-to-equity ratio of approximately 0.81 indicates a moderate level of debt compared to its equity, suggesting a balanced approach to financing. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, is around 0.52. This figure suggests that Schwab may rely on its operational cash flow to meet its short-term obligations.
The 2025 Modern Wealth Survey conducted by Charles Schwab reveals that Americans now believe it requires $839,000 to feel "financially comfortable," up from $778,000 last year. This increase reflects changing perceptions of financial security, which may influence Schwab's client base and demand for its financial services. Additionally, the survey indicates that Americans think it takes an average of $2.3 million to be considered "wealthy," highlighting the evolving financial landscape.
