STIFEL FINANCIAL CORP (SF) Stock Fundamental Analysis
NYSE:SF - New York Stock Exchange, Inc. - US8606301021 - Common Stock - Currency: USD
SF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 231 industry peers in the Capital Markets industry. There are concerns on the financial health of SF while its profitability can be described as average. SF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SF was profitable.
SF had a positive operating cash flow in the past year.
In the past 5 years SF has always been profitable.
SF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SF has a Return On Assets (1.44%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.54%, SF is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
SF has a Return On Invested Capital (3.50%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SF is below the industry average of 7.24%.
The 3 year average ROIC (3.24%) for SF is below the current ROIC(3.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 10.54% | ||
| ROIC | 3.5% |
ROA(3y)1.57%
ROA(5y)1.76%
ROE(3y)11.03%
ROE(5y)12%
ROIC(3y)3.24%
ROIC(5y)2.97%
1.3 Margins
SF has a worse Profit Margin (9.72%) than 60.87% of its industry peers.
In the last couple of years the Profit Margin of SF has remained more or less at the same level.
SF has a Operating Margin (28.54%) which is comparable to the rest of the industry.
SF's Operating Margin has improved in the last couple of years.
SF has a better Gross Margin (98.94%) than 98.70% of its industry peers.
SF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.54% | ||
| PM (TTM) | 9.72% | ||
| GM | 98.94% |
OM growth 3Y11.3%
OM growth 5Y7.74%
PM growth 3Y-10.93%
PM growth 5Y-1%
GM growth 3Y0.06%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The number of shares outstanding for SF has been increased compared to 1 year ago.
SF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.31, we must say that SF is in the distress zone and has some risk of bankruptcy.
SF's Altman-Z score of -0.31 is on the low side compared to the rest of the industry. SF is outperformed by 80.43% of its industry peers.
The Debt to FCF ratio of SF is 39.38, which is on the high side as it means it would take SF, 39.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 39.38, SF is in line with its industry, outperforming 45.22% of the companies in the same industry.
A Debt/Equity ratio of 5.75 is on the high side and indicates that SF has dependencies on debt financing.
The Debt to Equity ratio of SF (5.75) is worse than 85.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.75 | ||
| Debt/FCF | 39.38 | ||
| Altman-Z | -0.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.12 indicates that SF may have some problems paying its short term obligations.
With a Current ratio value of 0.12, SF is not doing good in the industry: 90.87% of the companies in the same industry are doing better.
SF has a Quick Ratio of 0.12. This is a bad value and indicates that SF is not financially healthy enough and could expect problems in meeting its short term obligations.
SF has a worse Quick ratio (0.12) than 90.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.50% over the past year.
Measured over the past years, SF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.86% on average per year.
SF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.94%.
The Revenue has been growing by 11.11% on average over the past years. This is quite good.
EPS 1Y (TTM)21.5%
EPS 3Y-1.24%
EPS 5Y10.86%
EPS Q2Q%-67.11%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y7.56%
Revenue growth 5Y11.11%
Sales Q2Q%7.95%
3.2 Future
Based on estimates for the next years, SF will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.15% on average per year.
Based on estimates for the next years, SF will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y-3.4%
EPS Next 2Y15.39%
EPS Next 3Y16.12%
EPS Next 5Y8.15%
Revenue Next Year5.29%
Revenue Next 2Y7.59%
Revenue Next 3Y8.46%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SF is valuated correctly with a Price/Earnings ratio of 16.00.
SF's Price/Earnings is on the same level as the industry average.
SF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of SF.
67.39% of the companies in the same industry are more expensive than SF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.77. SF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
95.22% of the companies in the same industry are more expensive than SF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SF is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
SF has a very decent profitability rating, which may justify a higher PE ratio.
SF's earnings are expected to grow with 16.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y15.39%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, SF has a reasonable but not impressive dividend return.
SF's Dividend Yield is slightly below the industry average, which is at 8.18.
SF's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of SF grows each year by 26.83%, which is quite nice.
SF has paid a dividend for at least 10 years, which is a reliable track record.
SF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)26.83%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
38.91% of the earnings are spent on dividend by SF. This is a low number and sustainable payout ratio.
SF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.91%
EPS Next 2Y15.39%
EPS Next 3Y16.12%
93.13
-1.17 (-1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.55%
Inst Owner Change2.17%
Ins Owners3.26%
Ins Owner Change4.44%
Market Cap9.60B
Analysts76.47
Price Target107.39 (15.31%)
Short Float %2.83%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend2.24
Dividend Growth(5Y)26.83%
DP38.91%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.05%
Min EPS beat(2)-71.13%
Max EPS beat(2)9.03%
EPS beat(4)2
Avg EPS beat(4)-17.64%
Min EPS beat(4)-71.13%
Max EPS beat(4)9.03%
EPS beat(8)3
Avg EPS beat(8)-16.01%
EPS beat(12)3
Avg EPS beat(12)-14.26%
EPS beat(16)6
Avg EPS beat(16)-8.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-4.53%
Max Revenue beat(2)2.84%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)2.84%
Revenue beat(8)2
Avg Revenue beat(8)-1.3%
Revenue beat(12)4
Avg Revenue beat(12)-0.27%
Revenue beat(16)7
Avg Revenue beat(16)0.23%
PT rev (1m)-1.29%
PT rev (3m)-16.88%
EPS NQ rev (1m)-6.21%
EPS NQ rev (3m)-12.74%
EPS NY rev (1m)-15.88%
EPS NY rev (3m)-21.43%
Revenue NQ rev (1m)-6.14%
Revenue NQ rev (3m)-8.94%
Revenue NY rev (1m)-4.84%
Revenue NY rev (3m)-7.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 10.26 | ||
| P/S | 1.6 | ||
| P/FCF | 11.87 | ||
| P/OCF | 10.79 | ||
| P/B | 1.73 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 4.2 |
EPS(TTM)5.82
EY6.25%
EPS(NY)9.08
Fwd EY9.75%
FCF(TTM)7.84
FCFY8.42%
OCF(TTM)8.63
OCFY9.26%
SpS58.26
BVpS53.75
TBVpS39.16
PEG (NY)N/A
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 10.54% | ||
| ROCE | 27.57% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 4.11% | ||
| OM | 28.54% | ||
| PM (TTM) | 9.72% | ||
| GM | 98.94% | ||
| FCFM | 13.46% |
ROA(3y)1.57%
ROA(5y)1.76%
ROE(3y)11.03%
ROE(5y)12%
ROIC(3y)3.24%
ROIC(5y)2.97%
ROICexc(3y)3.52%
ROICexc(5y)3.22%
ROICexgc(3y)3.83%
ROICexgc(5y)3.53%
ROCE(3y)23.39%
ROCE(5y)18.24%
ROICexcg growth 3Y13.05%
ROICexcg growth 5Y6.85%
ROICexc growth 3Y13.05%
ROICexc growth 5Y7.88%
OM growth 3Y11.3%
OM growth 5Y7.74%
PM growth 3Y-10.93%
PM growth 5Y-1%
GM growth 3Y0.06%
GM growth 5Y0.04%
F-Score8
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.75 | ||
| Debt/FCF | 39.38 | ||
| Debt/EBITDA | 17.7 | ||
| Cap/Depr | 95.12% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 1.8 | ||
| Cash Conversion | 49.43% | ||
| Profit Quality | 138.51% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | -0.31 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)88.97%
Cap/Depr(5y)136.67%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.98%
Profit Quality(3y)108.09%
Profit Quality(5y)148.9%
High Growth Momentum
Growth
EPS 1Y (TTM)21.5%
EPS 3Y-1.24%
EPS 5Y10.86%
EPS Q2Q%-67.11%
EPS Next Y-3.4%
EPS Next 2Y15.39%
EPS Next 3Y16.12%
EPS Next 5Y8.15%
Revenue 1Y (TTM)12.94%
Revenue growth 3Y7.56%
Revenue growth 5Y11.11%
Sales Q2Q%7.95%
Revenue Next Year5.29%
Revenue Next 2Y7.59%
Revenue Next 3Y8.46%
Revenue Next 5Y4.89%
EBIT growth 1Y5.41%
EBIT growth 3Y19.72%
EBIT growth 5Y19.71%
EBIT Next Year-12.57%
EBIT Next 3Y1.63%
EBIT Next 5Y2.66%
FCF growth 1Y-40.69%
FCF growth 3Y-15.23%
FCF growth 5Y-2.34%
OCF growth 1Y-38.6%
OCF growth 3Y-17.46%
OCF growth 5Y-4.79%