Business Analysis of Charles Schwab

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Charles Schwab

CHARLES SCHWAB

Business Overview

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; and stock plan services, compliance solutions, and mutual fund clearing services, as well as engages in the off-platform sales business. The Advisor Services segment provides custodial, trading, and support services; and retirement and corporate brokerage retirement services. The company provides brokerage accounts with cash management capabilities; third-party mutual funds through the Mutual Fund Marketplace, including no-transaction fee mutual funds through the Mutual Fund OneSource service, which includes proprietary mutual funds, plus mutual fund trading, and clearing services to broker-dealers; exchange-traded funds (ETFs), including proprietary and third-party ETFs; and advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. It also offers banking products and services, including checking and savings accounts, certificates of deposit, first lien residential real estate mortgage loans, home equity loans and lines of credit, and Pledged Asset Lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. The company serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, London, and Hong Kong. The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California.

Charles Schwab

Charles Schwab


R&P Rank: 370
Sector: Financial Services
Industry:Investment Services
H.Q Location:California
Website: www.aboutschwab.com
Company Address:
211 MAIN STREET, SAN FRANCISCO CA 94105
Ph:415-667-7000

Business Analysis of Charles Schwab

The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Charles Schwab compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Charles Schwab to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Charles Schwab with an interactive chart.

  1. Revenue Growth: Charles Schwab reported a revenue growth of 17.2% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
  2. COGS share of Revenues: Charles Schwab COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Charles Schwab R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Charles Schwab spent 51.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
  5. Inventory share of Revenues: Charles Schwab Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Charles Schwab invested 512.2% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Charles Schwab invested 239.1% of its total revenues on Accounts Receivable (A/R). Investment Services industry average Accounts Receivable investment in the same period was 79.0%
  8. PP&E share of Revenues: As a percentage of revenue, Charles Schwab invested 17.4% of its total revenues on Property, Plants, and Equipments (PP&E). Investment Services industry average PPE investment in the same period was 6.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Charles Schwab invested 18.3% of its total revenues on Intangibles. Investment Services industry average Intangibles investment in the same period was 74.6%
  10. Net Margins: Charles Schwab Net Margins in the year 2016 were 25.3%. Investment Services industry average Net Margins in the same period were 17.8%

Sector and Industry Association of Charles Schwab

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Charles Schwab is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

  • Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
  • Consumer Finance industry includes companies providing credit services and mortgage finance services.
  • Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
  • Financial News, Research and Data industry includes companies providing payments and transaction processing services.

Industry Ranking of Charles Schwab

With $7.5 billion revenues, Charles Schwab ranked number 8 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Investment Services industry by revenues during 2016 were:

  1. Morgan Stanley ($34.6 billion)
  2. Goldman Sachs ($30.6 billion)
  3. Bank Of New York Mellon ($15.2 billion)
  4. INTL FCStone ($14.8 billion)
  5. Ameriprise Financial ($11.7 billion)
  6. BlackRock ($11.2 billion)
  7. State Street ($10.2 billion)
  8. Charles Schwab ($7.5 billion)
  9. Franklin Templeton Investments ($6.6 billion)
  10. Intercontinental Exchange ($6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Charles Schwaband its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of charles-schwab

Ameriprise Financial (AMP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ameriprise Financial Inc with $12 billion revenues in the year 2016 was the number 5 Investment Services company. Read this report to know the top competitors of Ameriprise Financial and identify growth and cost optimization opportunities of Ameriprise Financial

BlackRock (BLK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

BlackRock Inc. with $11 billion revenues in the year 2016 was the number 6 Investment Services company. Read this report to know the top competitors of BlackRock and identify growth and cost optimization opportunities of BlackRock

State Street (STT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

State Street Corp with $10 billion revenues in the year 2016 was the number 7 Investment Services company. Read this report to know the top competitors of State Street and identify growth and cost optimization opportunities of State Street

Franklin Templeton Investments (BEN) Business Analysis – Analyze Historical Performance, Strategic...

Franklin Resources Inc with $7 billion revenues in the year 2016 was the number 9 Investment Services company. Read this report to know the top competitors of Franklin Templeton Investments and identify growth and cost optimization opportunities of Franklin Templeton Investments

Intercontinental Exchange (ICE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Intercontinental Exchange, Inc. with $6 billion revenues in the year 2016 was the number 10 Investment Services company. Read this report to know the top competitors of Intercontinental Exchange and identify growth and cost optimization opportunities of Intercontinental Exchange

Raymond James Financial (RJF) Business Analysis – Analyze Historical Performance, Strategic...

Raymond James Financial Inc with $5 billion revenues in the year 2016 was the number 11 Investment Services company. Read this report to know the top competitors of Raymond James Financial and identify growth and cost optimization opportunities of Raymond James Financial

Revenues Analysis

Charles Schwab (SCHW) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Charles Schwab Corp (SCHW) from 2012 to 2016. Charles Schwab generated a total of $7.5 billion revenues during 2016. Charles Schwab reported a revenue growth of 17.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Charles Schwab (SCHW) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Charles Schwab Corp (SCHW) from 2002 to 2016. Charles Schwab generated a total of $7.5 billion revenues during 2016. Charles Schwab reported a revenue growth of 17.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Charles Schwab (SCHW) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Charles Schwab Corp (SCHW) revenue growth with Investment Services industry growth during the last five years from 2012 to 2016. Charles Schwab reported a revenue growth of 17.2% year-over-year during 2016. The Investment Services industry growth was -6.5% year-over-year during 2016. Charles Schwab growth was faster than the industry during 2016.

Profit Analysis