STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STC - US8603721015 - Common Stock
76.92 USD
+0.29 (+0.38%)
76.92 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to STC. STC was compared to 148 industry peers in the Insurance industry. STC has a medium profitability rating, but doesn't score so well on its financial health evaluation. STC is not overvalued while it is showing excellent growth. This is an interesting combination. 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
Looking at the Return On Assets, with a value of 3.58%, STC is in the better half of the industry, outperforming 71.62% of the companies in the same industry.
STC has a Return On Equity of 6.92%. This is in the lower half of the industry: STC underperforms 72.30% of its industry peers.
STC has a Return On Invested Capital of 4.83%. This is in the better half of the industry: STC outperforms 77.70% 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 4.57%.
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
STC's Profit Margin of 3.65% is on the low side compared to the rest of the industry. STC is outperformed by 74.32% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
STC has a worse Operating Margin (5.64%) than 75.00% of its industry peers.
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.
Compared to 1 year ago, STC has more shares outstanding
STC has more shares outstanding than it did 5 years ago.
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.
With a Debt to FCF ratio value of 3.55, STC perfoms like the industry average, 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.
STC has a Debt to Equity ratio (0.30) which 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/WACC0.63
WACC7.69%
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.
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.
STC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.19%.
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)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
With a Price/Earnings ratio of 17.68, STC is valued on the expensive side.
Based on the Price/Earnings ratio, STC is valued a bit more expensive than 66.89% of the companies in the same industry.
STC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
The Price/Forward Earnings ratio is 14.18, which indicates a correct valuation of STC.
62.84% of the companies in the same industry are cheaper than STC, based on the Price/Forward Earnings ratio.
STC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 14.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STC.
STC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. STC is more expensive than 60.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.16 | ||
| EV/EBITDA | 11.01 |
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.
STC's earnings are expected to grow with 26.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)2.18
EPS Next 2Y26.86%
EPS Next 3Y26.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, STC has a reasonable but not impressive dividend return.
STC's Dividend Yield is a higher than the industry average which is at 3.32.
STC's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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 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
STC pays out 55.39% of its income as dividend. 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%
76.92
+0.29 (+0.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.58%
Inst Owner Change2.98%
Ins Owners1.72%
Ins Owner Change-0.69%
Market Cap2.16B
Revenue(TTM)2.80B
Net Income(TTM)102.00M
Analysts45
Price Target79.56 (3.43%)
Short Float %2.26%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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)0%
PT rev (3m)6.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.51%
EPS NY rev (1m)6%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.51%
Revenue NY rev (1m)3.57%
Revenue NY rev (3m)3.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 14.18 | ||
| P/S | 0.77 | ||
| P/FCF | 17.16 | ||
| P/OCF | 11.71 | ||
| P/B | 1.46 | ||
| P/tB | 11.02 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)4.35
EY5.66%
EPS(NY)5.42
Fwd EY7.05%
FCF(TTM)4.48
FCFY5.83%
OCF(TTM)6.57
OCFY8.54%
SpS99.82
BVpS52.58
TBVpS6.98
PEG (NY)0.54
PEG (5Y)2.18
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
WACC7.69%
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 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 7 / 10 and the dividend payout ratio is 55.39%.