Charles Schwab Intrinsic Value Calculation – Charles Schwab Reports Q2 Earnings Results for FY2023 on July 18, 2023
August 1, 2023
🌥️Earnings Overview
CHARLES SCHWAB ($NYSE:SCHW)’s fiscal year 2023 second quarter earnings results were reported on July 18 2023, with total revenue of USD 4.7 billion for the quarter, a decrease of 8.4% from the same period in the prior year. Net income for the quarter was USD 1.3 billion, a decrease of 27.9% compared to the same quarter in the prior year.
Share Price
On Tuesday, July 18, 2023, Charles Schwab reported their second quarter earnings results for the fiscal year of 2023. Overall, the results were positive and investors have responded positively to the news as evidenced by the increase in stock prices. Charles Schwab is expected to continue their impressive performance into the third quarter and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Charles Schwab. More…
| Total Revenues | Net Income | Net Margin |
| 20.77k | 6.41k | 33.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Charles Schwab. More…
| Operations | Investing | Financing |
| 8.78k | 32.05k | -68.72k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Charles Schwab. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 535.55k | 499.2k | 19.97 |
Key Ratios Snapshot
Some of the financial key ratios for Charles Schwab are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.0% | – | – |
| FCF Margin | ROE | ROA |
| 38.3% | 15.6% | 1.1% |
Analysis – Charles Schwab Intrinsic Value Calculation
At GoodWhale, we have conducted a fundamental analysis of CHARLES SCHWAB and are excited to share our findings. Our proprietary Valuation Line indicates that the fair value for a share of CHARLES SCHWAB is estimated to be around $81.6. However, the stock is currently being traded at $66.0 which is a 19.2% undervaluation of the true value. This presents an interesting opportunity for those looking to purchase a share of CHARLES SCHWAB at a discounted rate. More…
Peers
Charles Schwab Corp is an American financial services company with headquarters in San Francisco, California. The company was founded in 1971 by Charles Schwab and offers a wide variety of financial services including banking, investments, and retirement planning. Morgan Stanley, CITIC Securities Co Ltd, and Samsung Securities Co Ltd are all competitors of Charles Schwab in the financial services industry.
– Morgan Stanley ($NYSE:MS)
As of 2022, Morgan Stanley’s market cap is 137.06B with a ROE of 9.95%. Morgan Stanley is a leading global financial services firm that provides a full range of investment banking, securities, investment management and wealth management services. The company has offices in more than 42 countries and employs over 60,000 people.
– CITIC Securities Co Ltd ($SHSE:600030)
CITIC Securities Co Ltd has a market cap of 244.81B as of 2022. The company’s return on equity is 7.96%. CITIC Securities Co Ltd is a leading investment bank in China with a focus on providing comprehensive financial services to clients in the areas of securities, investment banking, and asset management.
– Samsung Securities Co Ltd ($KOSE:016360)
Samsung Securities Co Ltd is a South Korean investment bank and brokerage firm. It is a subsidiary of the Samsung Group. The company has a market capitalization of 2.84 trillion as of 2022 and a return on equity of 10.07%. The company provides a range of financial services, including investment banking, equity research, asset management, and more.
Summary
Charles Schwab reported their second quarter earnings for fiscal year 2023 on July 18th, showing a total revenue of $4.7 billion, a decrease of 8.4% year-over-year. Net income was also down 27.9% from the same period in the prior year, with with net income of $1.3 billion. Despite this, the stock price rose on the same day.
Investors may be encouraged by the company’s resilience in the face of the Covid-19 pandemic and its ability to generate revenue despite unfavorable market conditions. For those looking to invest in Schwab, careful consideration of risk factors such as changes in trading volume and commissions are advised, as well as taking note of the company’s success in cost management efforts and ability to remain competitive in the online brokerage space.
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