Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Charles Schwab's 3-Year RORE % for the quarter that ended in Mar. 2026 was 22.73%.
The industry rank for Charles Schwab's 3-Year RORE % or its related term are showing as below:
HAM:SWG's 3-Year RORE % is ranked better than 68.02% of 763
companies
in the Capital Markets industry
Industry Median: 15.15
vs HAM:SWG: 22.73
Charles Schwab (HAM:SWG) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Charles Schwab 3-Year RORE % Related Terms
Charles Schwab 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Charles Schwab's 3-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:SWG vs HOOD, IBKR, LPLA: 3-Year RORE % Comparison
For the Capital Markets subindustry, Charles Schwab's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charles Schwab 3-Year RORE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Charles Schwab's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Charles Schwab's 3-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Charles Schwab (HAM:SWG) has a 3-Year RORE % of 22.73 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Charles Schwab and its competitors. According to the industry distribution chart, Charles Schwab ranks #244 out of 763 companies in the Capital Markets industry, placing it in the top 32%.
Is Charles Schwab's 3-Year RORE % too high?
Charles Schwab's current 3-Year RORE % is 22.73. The Capital Markets industry median 3-Year RORE % is 15.15. Charles Schwab's value of 22.73 is 50% above this industry median. Based on the distribution chart, Charles Schwab ranks #244 out of 763 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Charles Schwab has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's 3-Year RORE % compare to HOOD and IBKR?
According to the Capital Markets industry distribution chart, Charles Schwab ranks #244 out of 763 companies for 3-Year RORE %. This puts Charles Schwab in the upper half of its industry. The industry median 3-Year RORE % is 15.15. Charles Schwab's value of 22.73 is 50% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Capital Markets company?
The median 3-Year RORE % among Capital Markets companies is 15.15, based on 763 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Charles Schwab's current 3-Year RORE % of 22.73 is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Charles Schwab and its competitors. For the Capital Markets industry, the median 3-Year RORE % is 15.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charles Schwab's current 3-Year RORE % is 22.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Charles Schwab (HAM:SWG) has a current 3-Year RORE % of 22.73. The stock's GF Value™ is €90.00, compared to a current price of €79.24 — trading 12% below its estimated fair value. The current 3-Year RORE % is 22.73 and 50% above the Capital Markets industry median of 15.15. Charles Schwab's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Charles Schwab (HAM:SWG), the current 3-Year RORE % is 22.73 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Charles Schwab (HAM:SWG) Overvalued in 2026?
Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued.
The current stock price of €79.24 is trading 12% below its estimated GF Value™ of €90.00.
Key valuation signals for HAM:SWG:
3-Year RORE %: 22.73
GF Value™: €90.00 vs. price of €79.24 (12% below fair value)
Industry Position: 50% above the Capital Markets median (#244 of 763)
No single metric tells the full story. See the HAM:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score
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