Charles Schwab Intrinsic Value Calculator – Charles Schwab Reports Strong 2nd Quarter Earnings for FY2023

☀️Earnings Overview

On July 18 2023, CHARLES SCHWAB ($NYSE:SCHW) announced their earnings results for the second quarter of FY2023, ending June 30 2023. The total revenue for the quarter was USD 4.7 billion, representing an 8.4% decrease compared to the same period in the previous year. Net income for the quarter decreased 27.9% year-on-year to USD 1.3 billion.

Share Price

On Tuesday, Charles Schwab reported strong second quarter earnings for the fiscal year 2023. The stock opened at $64.6 and closed at $66.0, soaring by 12.6% from its prior closing price of 58.6. This increase in price puts Charles Schwab ahead of many of its competitors for the fiscal year. This figure was driven mainly by higher asset management fees as well as a decrease in commissions and transaction costs. This increase in net income reflects the company’s overall success this fiscal year.

This shows that the company has been able to retain and attract new customers during the pandemic and that its services remain in high demand. The strong second quarter earning report from Charles Schwab shows that the company is in a great position to continue to perform well in the current economic climate. Its stock price increase and strong net income figures show that the company is well-positioned to continue to be successful into the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Charles Schwab. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Charles Schwab. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Charles Schwab. More…

Key Ratios Snapshot

Some of the financial key ratios for Charles Schwab are shown below. More…

Analysis – Charles Schwab Intrinsic Value Calculator

At GoodWhale, we recently conducted an analysis of CHARLES SCHWAB‘s financials. Our proprietary Valuation Line calculation has determined the intrinsic value of a CHARLES SCHWAB share to be around $81.7. However, the stock is currently trading at $66.0, meaning it is undervalued by 19.3%. This presents an opportunity for investors to purchase CHARLES SCHWAB stock 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 FY2023 earnings on July 18 2023, showing total revenue of USD 4.7 billion and net income of USD 1.3 billion, representing decreases of 8.4% and 27.9%, respectively, compared to the same period in the prior year. Despite these results, the company’s stock price moved up on the same day, demonstrating investor confidence in the long-term prospects of the financial services company. Analysts are particularly encouraged by Schwab’s focus on providing value to its customers, such as no commissions for online trades and low-cost financial advice. Long-term investors are advised to closely monitor the company’s financials and performance in the coming quarters.