STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - NYSE:STC - US8603721015 - Common Stock
74.14 USD
-0.57 (-0.76%)
74.14 USD
0 (0%)
STC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. STC may be in some trouble as it scores bad on both profitability and health. STC is growing strongly while it is still valued neutral. This is a good combination! STC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
STC had positive earnings in the past year.
STC had a positive operating cash flow in the past year.
In the past 5 years STC has always been profitable.
Each year in the past 5 years STC had a positive operating cash flow.
1.2 Ratios
STC has a Return On Assets of 3.16%. This is in the better half of the industry: STC outperforms 66.67% of its industry peers.
The Return On Equity of STC (6.11%) is worse than 68.03% of its industry peers.
The Return On Invested Capital of STC (4.33%) is better than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STC is in line with the industry average of 4.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.11% | ||
| ROIC | 4.33% |
ROA(3y)3.25%
ROA(5y)5.81%
ROE(3y)6.45%
ROE(5y)12%
ROIC(3y)4.8%
ROIC(5y)7.75%
1.3 Margins
STC's Profit Margin of 3.29% is on the low side compared to the rest of the industry. STC is outperformed by 71.43% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
STC has a worse Operating Margin (5.22%) than 74.15% of its industry peers.
STC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 3.29% | ||
| GM | N/A |
OM growth 3Y-28.36%
OM growth 5Y-4.83%
PM growth 3Y-32.98%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STC is destroying value.
Compared to 1 year ago, STC has more shares outstanding
Compared to 5 years ago, STC has more shares outstanding
Compared to 1 year ago, STC has an improved debt to assets ratio.
2.2 Solvency
STC has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as STC would need 3.73 years to pay back of all of its debts.
The Debt to FCF ratio of STC (3.73) is comparable to the rest of the industry.
STC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of STC (0.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC7.66%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.63% over the past year.
STC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.13% yearly.
Looking at the last year, STC shows a quite strong growth in Revenue. The Revenue has grown by 16.19% in the last year.
Measured over the past years, STC shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
EPS 1Y (TTM)52.63%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%40.17%
Revenue 1Y (TTM)16.19%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%20.12%
3.2 Future
The Earnings Per Share is expected to grow by 25.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, STC will show a quite strong growth in Revenue. The Revenue will grow by 10.79% on average per year.
EPS Next Y24.98%
EPS Next 2Y26.63%
EPS Next 3Y25.91%
EPS Next 5YN/A
Revenue Next Year13.39%
Revenue Next 2Y12.9%
Revenue Next 3Y10.79%
Revenue Next 5YN/A
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STC is valuated rather expensively with a Price/Earnings ratio of 17.04.
Based on the Price/Earnings ratio, STC is valued a bit more expensive than 63.95% of the companies in the same industry.
STC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.72, the valuation of STC can be described as correct.
STC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, STC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
STC's Enterprise Value to EBITDA ratio is in line with the industry average.
STC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 11.75 |
4.3 Compensation for Growth
STC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STC's earnings are expected to grow with 25.91% in the coming years.
PEG (NY)0.68
PEG (5Y)2.1
EPS Next 2Y26.63%
EPS Next 3Y25.91%
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 2.81%.
STC's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.30, STC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of STC is nicely growing with an annual growth rate of 10.37%!
STC has paid a dividend for at least 10 years, which is a reliable track record.
STC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.37%
Div Incr Years4
Div Non Decr Years15
5.3 Sustainability
STC pays out 63.35% of its income as dividend. This is not a sustainable payout ratio.
STC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.35%
EPS Next 2Y26.63%
EPS Next 3Y25.91%
74.14
-0.57 (-0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change0.5%
Ins Owners1.72%
Ins Owner Change1.14%
Market Cap2.08B
Revenue(TTM)2.80B
Net Income(TTM)87.84M
Analysts45
Price Target74.46 (0.43%)
Short Float %2.3%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend1.96
Dividend Growth(5Y)10.37%
DP63.35%
Div Incr Years4
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.89%
Min EPS beat(2)-25.74%
Max EPS beat(2)11.96%
EPS beat(4)3
Avg EPS beat(4)4.32%
Min EPS beat(4)-25.74%
Max EPS beat(4)19.67%
EPS beat(8)6
Avg EPS beat(8)32.87%
EPS beat(12)6
Avg EPS beat(12)11.98%
EPS beat(16)10
Avg EPS beat(16)18.28%
Revenue beat(2)2
Avg Revenue beat(2)4.83%
Min Revenue beat(2)1.75%
Max Revenue beat(2)7.91%
Revenue beat(4)4
Avg Revenue beat(4)3.67%
Min Revenue beat(4)1.75%
Max Revenue beat(4)7.91%
Revenue beat(8)7
Avg Revenue beat(8)2.51%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)12
Avg Revenue beat(16)5.37%
PT rev (1m)0%
PT rev (3m)1.39%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-3.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 13.72 | ||
| P/S | 0.78 | ||
| P/FCF | 17.38 | ||
| P/OCF | 12.39 | ||
| P/B | 1.44 | ||
| P/tB | 11.12 | ||
| EV/EBITDA | 11.75 |
EPS(TTM)4.35
EY5.87%
EPS(NY)5.4
Fwd EY7.29%
FCF(TTM)4.27
FCFY5.75%
OCF(TTM)5.98
OCFY8.07%
SpS95.29
BVpS51.35
TBVpS6.67
PEG (NY)0.68
PEG (5Y)2.1
Graham Number70.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.11% | ||
| ROCE | 5.69% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 13.76% | ||
| OM | 5.22% | ||
| PM (TTM) | 3.29% | ||
| GM | N/A | ||
| FCFM | 4.48% |
ROA(3y)3.25%
ROA(5y)5.81%
ROE(3y)6.45%
ROE(5y)12%
ROIC(3y)4.8%
ROIC(5y)7.75%
ROICexc(3y)5.33%
ROICexc(5y)9.53%
ROICexgc(3y)15.9%
ROICexgc(5y)26.2%
ROCE(3y)6.32%
ROCE(5y)10.19%
ROICexgc growth 3Y-38.74%
ROICexgc growth 5Y-1.59%
ROICexc growth 3Y-37.84%
ROICexc growth 5Y-14.03%
OM growth 3Y-28.36%
OM growth 5Y-4.83%
PM growth 3Y-32.98%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 78.25% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.46% | ||
| Profit Quality | 135.99% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.66%
ROIC/WACC0.56
Cap/Depr(3y)70.02%
Cap/Depr(5y)79.51%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)122.37%
Profit Quality(5y)128.78%
High Growth Momentum
Growth
EPS 1Y (TTM)52.63%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%40.17%
EPS Next Y24.98%
EPS Next 2Y26.63%
EPS Next 3Y25.91%
EPS Next 5YN/A
Revenue 1Y (TTM)16.19%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%20.12%
Revenue Next Year13.39%
Revenue Next 2Y12.9%
Revenue Next 3Y10.79%
Revenue Next 5YN/A
EBIT growth 1Y46.31%
EBIT growth 3Y-34.82%
EBIT growth 5Y0.05%
EBIT Next Year78.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y482.66%
FCF growth 3Y-35.25%
FCF growth 5Y-8.62%
OCF growth 1Y190.33%
OCF growth 3Y-29.7%
OCF growth 5Y-4.01%
STEWART INFORMATION SERVICES / STC FAQ
What is the ChartMill fundamental rating of STEWART INFORMATION SERVICES (STC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to STC.
What is the valuation status of STEWART INFORMATION SERVICES (STC) stock?
ChartMill assigns a valuation rating of 4 / 10 to STEWART INFORMATION SERVICES (STC). This can be considered as Fairly Valued.
Can you provide the profitability details for STEWART INFORMATION SERVICES?
STEWART INFORMATION SERVICES (STC) has a profitability rating of 3 / 10.
How financially healthy is STEWART INFORMATION SERVICES?
The financial health rating of STEWART INFORMATION SERVICES (STC) is 2 / 10.
Can you provide the dividend sustainability for STC stock?
The dividend rating of STEWART INFORMATION SERVICES (STC) is 7 / 10 and the dividend payout ratio is 63.35%.