STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STC - US8603721015 - Common Stock
71.63 USD
-0.01 (-0.01%)
71.63 USD
0 (0%)
Overall STC gets a fundamental rating of 4 out of 10. We evaluated STC against 148 industry peers in the Insurance industry. While STC is still in line with the averages on profitability rating, there are concerns on its financial health. STC is not priced too expensively while it is growing strongly. Keep and eye on this one! Finally STC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
STC had positive earnings in the past year.
In the past year STC had a positive cash flow from operations.
STC had positive earnings in each of the past 5 years.
In the past 5 years STC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.58%, STC is in the better half of the industry, outperforming 72.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.92%, STC is doing worse than 69.59% of the companies in the same industry.
STC's Return On Invested Capital of 4.83% is fine compared to the rest of the industry. STC outperforms 77.03% of its industry peers.
STC had an Average Return On Invested Capital over the past 3 years of 4.80%. This is significantly below the industry average of 14.88%.
The 3 year average ROIC (4.80%) for STC is below the current ROIC(4.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.92% | ||
| ROIC | 4.83% |
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 has a Profit Margin of 3.65%. This is in the lower half of the industry: STC underperforms 72.97% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
The Operating Margin of STC (5.64%) is worse than 72.30% of its industry peers.
STC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.64% | ||
| PM (TTM) | 3.65% | ||
| 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
STC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STC has been increased compared to 1 year ago.
STC has more shares outstanding than it did 5 years ago.
STC has a better debt/assets ratio than last year.
2.2 Solvency
STC has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as STC would need 3.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.55, STC is in line with its industry, outperforming 45.27% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that STC is not too dependend on debt financing.
The Debt to Equity ratio of STC (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC7.75%
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.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
STC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.19%.
STC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
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
Based on estimates for the next years, STC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.03% on average per year.
Based on estimates for the next years, STC will show a quite strong growth in Revenue. The Revenue will grow by 11.36% on average per year.
EPS Next Y32.47%
EPS Next 2Y26.86%
EPS Next 3Y26.03%
EPS Next 5YN/A
Revenue Next Year17.43%
Revenue Next 2Y13.73%
Revenue Next 3Y11.36%
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
A Price/Earnings ratio of 16.47 indicates a correct valuation of STC.
Based on the Price/Earnings ratio, STC is valued a bit more expensive than the industry average as 60.14% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.61. STC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.21, which indicates a correct valuation of STC.
STC's Price/Forward Earnings is on the same level as the industry average.
STC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 13.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.98 | ||
| EV/EBITDA | 10.33 |
4.3 Compensation for Growth
The 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 26.03% in the coming years.
PEG (NY)0.51
PEG (5Y)2.03
EPS Next 2Y26.86%
EPS Next 3Y26.03%
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
STC's Dividend Yield is a higher than the industry average which is at 2.30.
STC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
On average, the dividend of STC grows each year by 10.37%, which is quite nice.
STC has paid a dividend for at least 10 years, which is a reliable track record.
STC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.37%
Div Incr Years4
Div Non Decr Years15
5.3 Sustainability
55.39% of the earnings are spent on dividend by STC. This is a bit on the high side, but may be sustainable.
The dividend of STC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.39%
EPS Next 2Y26.86%
EPS Next 3Y26.03%
71.63
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.37%
Inst Owner Change2.98%
Ins Owners1.72%
Ins Owner Change-0.62%
Market Cap2.01B
Revenue(TTM)2.80B
Net Income(TTM)102.00M
Analysts46.67
Price Target81.6 (13.92%)
Short Float %2.11%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend1.96
Dividend Growth(5Y)10.37%
DP55.39%
Div Incr Years4
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.81%
Min EPS beat(2)11.96%
Max EPS beat(2)17.66%
EPS beat(4)3
Avg EPS beat(4)5.89%
Min EPS beat(4)-25.74%
Max EPS beat(4)19.67%
EPS beat(8)6
Avg EPS beat(8)32.1%
EPS beat(12)7
Avg EPS beat(12)15.34%
EPS beat(16)10
Avg EPS beat(16)17.52%
Revenue beat(2)2
Avg Revenue beat(2)7.46%
Min Revenue beat(2)7.02%
Max Revenue beat(2)7.91%
Revenue beat(4)4
Avg Revenue beat(4)4.7%
Min Revenue beat(4)1.75%
Max Revenue beat(4)7.91%
Revenue beat(8)7
Avg Revenue beat(8)3.03%
Revenue beat(12)9
Avg Revenue beat(12)1.77%
Revenue beat(16)12
Avg Revenue beat(16)5.05%
PT rev (1m)2.56%
PT rev (3m)9.59%
EPS NQ rev (1m)10.83%
EPS NQ rev (3m)4.72%
EPS NY rev (1m)0%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 13.21 | ||
| P/S | 0.72 | ||
| P/FCF | 15.98 | ||
| P/OCF | 10.9 | ||
| P/B | 1.36 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 10.33 |
EPS(TTM)4.35
EY6.07%
EPS(NY)5.42
Fwd EY7.57%
FCF(TTM)4.48
FCFY6.26%
OCF(TTM)6.57
OCFY9.17%
SpS99.82
BVpS52.58
TBVpS6.98
PEG (NY)0.51
PEG (5Y)2.03
Graham Number71.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.92% | ||
| ROCE | 6.35% | ||
| ROIC | 4.83% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 15.78% | ||
| OM | 5.64% | ||
| PM (TTM) | 3.65% | ||
| GM | N/A | ||
| FCFM | 4.49% |
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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 95.27% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.98% | ||
| Profit Quality | 123.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.75%
ROIC/WACC0.62
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 Y32.47%
EPS Next 2Y26.86%
EPS Next 3Y26.03%
EPS Next 5YN/A
Revenue 1Y (TTM)16.19%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%20.12%
Revenue Next Year17.43%
Revenue Next 2Y13.73%
Revenue Next 3Y11.36%
Revenue Next 5YN/A
EBIT growth 1Y48.51%
EBIT growth 3Y-34.82%
EBIT growth 5Y0.05%
EBIT Next Year78.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y378.68%
FCF growth 3Y-35.25%
FCF growth 5Y-8.62%
OCF growth 1Y169.16%
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 4 / 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 8 / 10 and the dividend payout ratio is 55.39%.