STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STC - US8603721015 - Common Stock
66.05 USD
-0.59 (-0.89%)
66.05 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to STC. STC was compared to 146 industry peers in the Insurance industry. There are concerns on the financial health of STC while its profitability can be described as average. STC is not priced too expensively while it is growing strongly. 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.
- 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 better Return On Assets (3.58%) than 72.60% of its industry peers.
- Looking at the Return On Equity, with a value of 6.92%, STC is doing worse than 69.86% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.83%, STC is in the better half of the industry, outperforming 78.77% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for STC is significantly below the industry average of 15.11%.
- The last Return On Invested Capital (4.83%) for STC is above the 3 year average (4.80%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 3.65%, STC is doing worse than 71.92% of the companies in the same industry.
- In the last couple of years the Profit Margin of STC has declined.
- With a Operating Margin value of 5.64%, STC is not doing good in the industry: 71.23% 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STC is destroying value.
- STC has more shares outstanding than it did 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
- 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.
- The Debt to FCF ratio of STC (3.55) is comparable to the rest of the industry.
- STC has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- STC has a Debt to Equity ratio (0.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC7.68%
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.
- Looking at the last year, STC shows a quite strong growth in Revenue. The Revenue has grown by 16.19% in the last year.
- 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 21.54% on average per year.
- The Revenue is expected to grow by 11.07% on average over the next years. This is quite good.
EPS Next Y36.96%
EPS Next 2Y41.02%
EPS Next 3Y32.8%
EPS Next 5Y21.54%
Revenue Next Year17.43%
Revenue Next 2Y13.73%
Revenue Next 3Y11.36%
Revenue Next 5Y11.07%
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
- Based on the Price/Earnings ratio of 15.18, the valuation of STC can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of STC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.47. STC is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 9.86 indicates a reasonable valuation of STC.
- STC's Price/Forward Earnings ratio is in line with the industry average.
- STC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 9.86 |
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.
- 60.27% of the companies in the same industry are cheaper than STC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 9.69 |
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 32.80% in the coming years.
PEG (NY)0.41
PEG (5Y)1.87
EPS Next 2Y41.02%
EPS Next 3Y32.8%
5. Dividend
5.1 Amount
- STC has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.42, STC pays a bit more dividend than its industry peers.
- STC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 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
- 55.39% of the earnings are spent on dividend by STC. This is a bit on the high side, but may be sustainable.
- STC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.39%
EPS Next 2Y41.02%
EPS Next 3Y32.8%
66.05
-0.59 (-0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)02-03 2026-02-03/amc
Inst Owners94.04%
Inst Owner Change0.02%
Ins Owners1.6%
Ins Owner Change-0.71%
Market Cap1.85B
Revenue(TTM)2.80B
Net Income(TTM)102.00M
Analysts46.67
Price Target83.13 (25.86%)
Short Float %4.12%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend1.96
Dividend Growth(5Y)10.37%
DP55.39%
Div Incr Years4
Div Non Decr Years15
Ex-DateN/A
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)1.88%
PT rev (3m)11.64%
EPS NQ rev (1m)12.08%
EPS NQ rev (3m)12.08%
EPS NY rev (1m)3.39%
EPS NY rev (3m)8.55%
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 | 15.18 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.66 | ||
| P/FCF | 14.74 | ||
| P/OCF | 10.05 | ||
| P/B | 1.26 | ||
| P/tB | 9.46 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)4.35
EY6.59%
EPS(NY)6.7
Fwd EY10.15%
FCF(TTM)4.48
FCFY6.79%
OCF(TTM)6.57
OCFY9.95%
SpS99.82
BVpS52.58
TBVpS6.98
PEG (NY)0.41
PEG (5Y)1.87
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
WACC7.68%
ROIC/WACC0.63
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 Y36.96%
EPS Next 2Y41.02%
EPS Next 3Y32.8%
EPS Next 5Y21.54%
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 5Y11.07%
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 5 / 10 to STC.
What is the valuation status for STC stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the financial health of STEWART INFORMATION SERVICES (STC) stock?
The financial health rating of STEWART INFORMATION SERVICES (STC) is 2 / 10.
What is the expected EPS growth for STEWART INFORMATION SERVICES (STC) stock?
The Earnings per Share (EPS) of STEWART INFORMATION SERVICES (STC) is expected to grow by 36.96% in the next year.