Earnings Review · 06 August 2026
Charles Beat the Quarter, and Still Fails Our Ethical Screen. Here’s Why We Pass.
The print
Revenue n/a. EPS $1.62 vs $1.55 expected.
Give the business its due
The business itself is genuinely strong: revenue growing about 21%, net margins near 39%, a moderate competitive moat.
The valuation lens
Our framework labels the valuation STRONG. Fair value lands near $122 against a $108 share price, a margin of safety of about 13%. The trailing multiple sits around 20 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Business activity screen. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
There is no direct compliant equivalent in the same industry on our screen, the honest answer is to screen a step wider rather than reach for a false substitute.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. We do not confuse a strong quarter with a suitable holding.
This is analysis, not financial advice. Always manage your risk.