SCHWNEUTRAL

SCHW Return on Equity (ROE) Analysis

19.1%

Higher than 71% of Financial Services sector peers

Updated 96h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) shows how much profit a company generates from every dollar of shareholders’ equity, and at 19.1% it indicates the company is earning nearly 19 cents for each dollar of equity invested.

Sector Performance

71th percentile

SCHW

19.1%

Sector Median

13.4%

Sector Avg

17.9%

Prior Period

17.9%(May 2026)

↑ Improving

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Deep Analysis

This level sits well above the sector median of 12.9%, placing SCHW in the 72nd percentile among Financial Services peers. The year-over-year change is not available, but the quarter-over-quarter increase of +6.7% shows recent improvement from the prior value of 17.9%. Although the available trend data is limited, the combination of a high ROE and a positive quarterly shift suggests the company is using its equity efficiently, which can reduce risk. This metric supports the overall NEUTRAL verdict by highlighting a competitive advantage in profitability, though it alone does not warrant a more bullish rating given the lack of longer-term trend evidence.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SCHW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SCHW's Return on Equity (ROE) compare to its sector?

SCHW's Return on Equity (ROE) of 19.1% compares to a Financial Services sector median of 13.4%, placing it in the 71th percentile.

Who are SCHW's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (13.4%), HDB (13.8%), SPGI (13.9%), AFL (12.4%), AIZ (14.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.