Charles Schwab Intrinsic Value – Charles Schwab Reports Second Quarter Earnings Results for Fiscal Year 2023

🌥️Earnings Overview

CHARLES SCHWAB ($NYSE:SCHW)’s financial report for the second quarter of fiscal year 2023, ending June 30, 2023, revealed total revenue of USD 4.7 billion, a decrease of 8.4% compared to the same period in the prior year. Net income was USD 1.3 billion, a decrease of 27.9% compared to the same period in the prior year.

Price History

On Tuesday, Charles Schwab reported its second quarter earnings results for fiscal year 2023. The company’s stock opened at $64.6 and closed at $66.0, soaring by 12.6% from the previous closing price of 58.6. Its assets under management also saw a substantial increase and reported a total of $4 trillion, a rise of 19% year-over-year. The strong earnings report was driven by success in the company’s core businesses, such as trading, advice, and client service.

Charles Schwab also experienced strong demand for its digital banking services and as a result, its digital banking accounts grew by 2 million year-over-year. Investors are optimistic about Charles Schwab’s future growth and potential for further gains. 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

GoodWhale has conducted an extensive analysis of CHARLES SCHWAB‘s financials and has determined that the fair value of its share is approximately $81.7. This figure was calculated by our proprietary Valuation Line, a tool which factors in key elements such as earnings, cash flows, and analyst forecasts. Currently, the stock is trading at $66.0, representing a 19.2% undervaluation. As such, this presents an attractive opportunity for investors looking to buy into the stock. 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 second quarter earnings for fiscal year 2023, with total revenue of $4.7 billion, a decline of 8.4% year-over-year. Net income decreased 27.9% from the prior year to $1.3 billion. Despite the decreased earnings, the stock price moved up on the news. Investors may be encouraged by the company’s performance in light of the pandemic and global economic downturn.

Despite the financial losses, Schwab’s investments remain resilient and may be seen as an opportunity for investors who are looking for a long-term investment vehicle. Investors should consider factors such as Schwab’s performance over time, its competitive positioning, its strength in customer service, and its dividend history when considering investing in Schwab.