Charles Schwab Corp (SCHW, Financial) has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $132.29 billion, the company's stock is trading at $72.41. Over the past week, there has been a marginal loss of 0.01%, while the past three months have seen a gain of 11.38%. When compared to the GF Value of $77.34, Charles Schwab is currently considered fairly valued, a shift from its previous status of modestly undervalued when the GF Value was at $77.6.
Overview of Charles Schwab Corp
Charles Schwab Corp operates within the capital markets industry, providing a range of financial services including brokerage, wealth management, banking, and asset management. The company boasts a significant presence with a large network of brokerage branch offices, a robust online investing platform, and mobile trading capabilities. Additionally, it runs a bank and manages proprietary asset management operations, catering to independent investment advisors. As of the end of December 2023, Charles Schwab managed over $8 trillion in client assets, predominantly in the United States. 
Assessing Profitability
Charles Schwab's Profitability Rank stands at 6/10, indicating a solid position in terms of earnings. The company's Return on Equity (ROE) is 13.42%, outperforming 73.48% of its peers in the industry. Its Return on Assets (ROA) is also impressive at 0.99%, surpassing 43.85% of competitors. Notably, Charles Schwab has maintained profitability for the past 10 years, a testament to its consistent performance. 
Growth Trajectory of Charles Schwab
The company's Growth Rank is an impressive 8/10. It has achieved a 3-Year Revenue Growth Rate per Share of 8.10% and a 5-Year Rate of 8.00%, indicating steady progress. Future estimates are even more optimistic, with a Total Revenue Growth Rate projected at 10.80% over the next 3 to 5 years. Earnings per Share (EPS) growth rates are also robust, with a 3-Year EPS without NRI Growth Rate of 8.50% and a 5-Year Rate of 7.70%. The future EPS Growth Rate is expected to be an outstanding 14.24%. 
Key Shareholders in Charles Schwab
Among the notable holders of Charles Schwab stock, Dodge & Cox leads with 86,421,986 shares, representing 4.74% of the company. Ken Fisher (Trades, Portfolio) follows with 18,623,505 shares, accounting for 1.02%, and Ruane Cunniff (Trades, Portfolio) holds 8,470,156 shares, making up 0.46%.
Competitive Landscape
Charles Schwab operates in a competitive environment, with major players like The Goldman Sachs Group Inc (GS, Financial) with a market cap of $130.98 billion, Morgan Stanley (MS, Financial) at $141.76 billion, and Raymond James Financial Inc (RJF, Financial) at $25.99 billion. These firms represent the closest competition in terms of market capitalization within the capital markets industry.
Conclusion
In summary, Charles Schwab Corp has demonstrated a strong stock performance with an 11.38% gain over the past three months, supported by a solid profitability rank and consistent growth in revenue and earnings. The company's strategic position in the capital markets industry, coupled with its expansive service offerings and large asset management portfolio, positions it well against competitors. With a fair valuation according to the GF Value and optimistic future growth estimates, Charles Schwab remains a significant player for investors to watch in the capital markets sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
