Since October 2025, Charles Schwab has been in a holding pattern, posting a small return of 2.7% while floating around $96.55.

Is now the time to buy SCHW? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why Is SCHW a Good Business?

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

Over the last five years, Charles Schwab grew its revenue at an impressive 15.4% compounded annual growth rate. Its growth beat the average financials company and shows its offerings resonate with customers.

2. EPS Increasing Steadily

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Charles Schwab’s solid 15.2% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.

3. Market-Beating ROE Showcases Attractive Growth Opportunities

Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for banks. Over a long period, banks with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.

Over the last five years, Charles Schwab has averaged an ROE of 14.4%, healthy for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Charles Schwab has a decent competitive moat.

Final Judgment

These are just a few reasons why we think Charles Schwab is a great business, but at $96.55 per share (or 15.6× forward P/E), is now the right time to buy the stock? See for yourself in our full research report, it’s free.

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