Core net new assets
In January 2018, The Charles Schwab Corporation (SCHW) saw core net new assets of $18.7 billion, thanks to the company’s new and existing client base. However, during the period, the company witnessed an outflow of $7.2 billion for its mutual fund clearing services client. This outflow isn’t included in the above core net new assets.
Charles Schwab’s total client assets stood at $3.48 trillion as of January 31, which reflects a rise of 23% on a YoY (year-over-year) basis. However, on a sequential basis, the rise was 4%. In January 2018, the company saw 165,000 new brokerage accounts, which implies a rise of 49% YoY.
Market performance, net buy and sell activities
On the back of its market performance, Charles Schwab’s total client assets witnessed appreciation of $107.2 billion in January 2018. However, the company made net purchases of $4.84 billion in the mutual funds category. The company also recorded net purchases of ETFs amounting to $6.91 billion.
In the money market funds category, Charles Schwab saw net selling of $5.73 billion in January 2018. During the period, the company made net purchases of large capitalization stocks amounting to $496 million.
Charles Schwab’s enterprise value-to-revenue ratio on an LTM (last-12-month) basis stood at 27.76x, and peers (XLF) Morgan Stanley (MS), Bank of New York Mellon Corporation (BK), and LPL Financial Holdings (LPLA) recorded 11.52x, 3.34x, and 1.64x, respectively, on an LTM basis.