STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
NYSE:STC - New York Stock Exchange, Inc. - US8603721015 - Common Stock - Currency: USD
Taking everything into account, STC scores 4 out of 10 in our fundamental rating. STC was compared to 143 industry peers in the Insurance industry. STC may be in some trouble as it scores bad on both profitability and 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
In the past year STC was profitable.
STC had a positive operating cash flow in the past year.
Each year in the past 5 years STC has been profitable.
STC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STC has a Return On Assets of 2.69%. This is in the better half of the industry: STC outperforms 60.14% of its industry peers.
Looking at the Return On Equity, with a value of 5.23%, STC is doing worse than 76.22% of the companies in the same industry.
STC has a better Return On Invested Capital (3.86%) than 71.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STC is in line with the industry average of 4.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.23% | ||
| ROIC | 3.86% |
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
With a Profit Margin value of 2.94%, STC is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of STC has declined.
With a Operating Margin value of 4.88%, STC is not doing good in the industry: 74.83% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of STC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | 2.94% | ||
| 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.
The number of shares outstanding for STC has been increased compared to 5 years ago.
Compared to 1 year ago, STC has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of STC is 4.69, which is a neutral value as it means it would take STC, 4.69 years of fcf income to pay off all of its debts.
STC has a Debt to FCF ratio of 4.69. This is in the lower half of the industry: STC underperforms 67.13% of its industry peers.
STC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
STC has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC7.76%
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 48.71%, which is quite impressive.
Measured over the past years, STC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.13% on average per year.
The Revenue has grown by 10.33% in the past year. This is quite good.
STC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)48.71%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.06%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%10.4%
3.2 Future
The Earnings Per Share is expected to grow by 30.88% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y42.66%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
EPS Next 5YN/A
Revenue Next Year11.38%
Revenue Next 2Y11.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 18.75, STC is valued on the expensive side.
STC's Price/Earnings ratio is a bit more expensive when compared to the industry. STC is more expensive than 65.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. STC is valued slightly cheaper when compared to this.
STC is valuated reasonably with a Price/Forward Earnings ratio of 9.74.
STC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STC is cheaper than 60.84% of the companies in the same industry.
STC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STC.
Based on the Price/Free Cash Flow ratio, STC is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 11.15 |
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 30.88% in the coming years.
PEG (NY)0.44
PEG (5Y)2.31
EPS Next 2Y40.36%
EPS Next 3Y30.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, STC has a reasonable but not impressive dividend return.
STC's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.47, STC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of STC is nicely growing with an annual growth rate of 10.37%!
STC has been paying a dividend for at least 10 years, so it has 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 Years3
Div Non Decr Years14
5.3 Sustainability
STC pays out 73.55% 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.
DP73.55%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
64.69
-0.82 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change0.07%
Ins Owners1.59%
Ins Owner Change1.46%
Market Cap1.81B
Analysts77.14
Price Target80.58 (24.56%)
Short Float %2.45%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend1.96
Dividend Growth(5Y)10.37%
DP73.55%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.53%
Min EPS beat(2)11.39%
Max EPS beat(2)19.67%
EPS beat(4)3
Avg EPS beat(4)60.07%
Min EPS beat(4)-20.27%
Max EPS beat(4)229.47%
EPS beat(8)5
Avg EPS beat(8)25.94%
EPS beat(12)7
Avg EPS beat(12)19.29%
EPS beat(16)11
Avg EPS beat(16)28.75%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)2.12%
Max Revenue beat(2)2.89%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)2.89%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)12
Avg Revenue beat(16)7.02%
PT rev (1m)0%
PT rev (3m)-4.82%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-49.5%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-16.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.73 | ||
| P/FCF | 19.06 | ||
| P/OCF | 13.37 | ||
| P/B | 1.29 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)3.45
EY5.33%
EPS(NY)6.64
Fwd EY10.26%
FCF(TTM)3.39
FCFY5.25%
OCF(TTM)4.84
OCFY7.48%
SpS88.87
BVpS50.02
TBVpS5.17
PEG (NY)0.44
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.23% | ||
| ROCE | 5.07% | ||
| ROIC | 3.86% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 12.89% | ||
| OM | 4.88% | ||
| PM (TTM) | 2.94% | ||
| GM | N/A | ||
| FCFM | 3.82% |
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%
ROICexcg growth 3Y-38.74%
ROICexcg 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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 65.68% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 6.96 | ||
| Cash Conversion | 74.02% | ||
| Profit Quality | 129.78% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.76%
ROIC/WACC0.5
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)48.71%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.06%
EPS Next Y42.66%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
EPS Next 5YN/A
Revenue 1Y (TTM)10.33%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%10.4%
Revenue Next Year11.38%
Revenue Next 2Y11.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y50.86%
EBIT growth 3Y-34.82%
EBIT growth 5Y0.05%
EBIT Next Year79.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y110.25%
FCF growth 3Y-35.25%
FCF growth 5Y-8.62%
OCF growth 1Y63.3%
OCF growth 3Y-29.7%
OCF growth 5Y-4.01%