STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - NYSE:STC - US8603721015 - Common Stock
74.71 USD
+2.6 (+3.61%)
74.71 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. Both the profitability and financial health of STC have multiple concerns. STC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
Each year in the past 5 years STC has been profitable.
Each year in the past 5 years STC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.16%, STC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.11%, STC is doing worse than 68.03% of the companies in the same industry.
STC has a Return On Invested Capital of 4.33%. This is in the better half of the industry: STC outperforms 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 has a Profit Margin of 3.29%. This is in the lower half of the industry: STC underperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
The Operating Margin of STC (5.22%) is worse 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
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.
Compared to 5 years ago, STC has more shares outstanding
The debt/assets ratio for STC has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of STC is 3.73, which is a good value as it means it would take STC, 3.73 years of fcf income to pay off all of its debts.
STC has a Debt to FCF ratio of 3.73. This is comparable to the rest of the industry: STC outperforms 45.58% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that STC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.31, STC perfoms like the industry average, outperforming 51.70% of the companies in the same 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
STC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.63%, which is quite impressive.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
The Revenue has grown by 10.33% in the past year. This is quite good.
The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)52.63%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%40.17%
Revenue 1Y (TTM)10.33%
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
The Revenue is expected to grow by 10.79% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 17.17 indicates a rather expensive valuation of STC.
63.95% of the companies in the same industry are cheaper than STC, based on the Price/Earnings ratio.
STC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.83, the valuation of STC can be described as correct.
STC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. STC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.17 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
STC's Enterprise Value to EBITDA is on the same level as the industry average.
STC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.51 | ||
| 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)0.69
PEG (5Y)2.11
EPS Next 2Y26.63%
EPS Next 3Y25.91%
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 2.91%. 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 3.26.
Compared to an average S&P500 Dividend Yield of 2.31, STC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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.
The dividend of STC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.35%
EPS Next 2Y26.63%
EPS Next 3Y25.91%
74.71
+2.6 (+3.61%)
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 Cap2.09B
Revenue(TTM)2.49B
Net Income(TTM)87.84M
Analysts45
Price Target74.46 (-0.33%)
Short Float %2.27%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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 | 17.17 | ||
| Fwd PE | 13.83 | ||
| P/S | 0.78 | ||
| P/FCF | 17.51 | ||
| P/OCF | 12.48 | ||
| P/B | 1.45 | ||
| P/tB | 11.21 | ||
| EV/EBITDA | 11.75 |
EPS(TTM)4.35
EY5.82%
EPS(NY)5.4
Fwd EY7.23%
FCF(TTM)4.27
FCFY5.71%
OCF(TTM)5.98
OCFY8.01%
SpS95.29
BVpS51.35
TBVpS6.67
PEG (NY)0.69
PEG (5Y)2.11
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)10.33%
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 6 / 10 and the dividend payout ratio is 63.35%.