STEWART INFORMATION SERVICES (STC)
US8603721015 - Common Stock
Taking everything into account, STC scores 3 out of 10 in our fundamental rating. STC was compared to 141 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STC was profitable.
STC had a positive operating cash flow in the past year.
In the past 5 years STC has always been profitable.
STC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STC (1.13%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.22%, STC is doing worse than 67.14% of the companies in the same industry.
With a decent Return On Invested Capital value of 2.59%, STC is doing good in the industry, outperforming 62.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STC is above the industry average of 4.07%.
The last Return On Invested Capital (2.59%) for STC is well below the 3 year average (8.25%), which needs to be investigated, but indicates that STC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROIC | 2.59% |
ROA(3y)6.18%
ROA(5y)6.26%
ROE(3y)13.12%
ROE(5y)13.06%
ROIC(3y)8.25%
ROIC(5y)8.4%
1.3 Margins
STC has a Profit Margin of 1.35%. This is in the lower half of the industry: STC underperforms 67.86% of its industry peers.
STC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.57%, STC is not doing good in the industry: 66.43% 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 | 3.57% | ||
| PM (TTM) | 1.35% | ||
| GM | N/A |
OM growth 3Y-28.24%
OM growth 5Y-2.27%
PM growth 3Y-41.6%
PM growth 5Y-11.54%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STC is creating some 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 a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of STC is 9.84, which is on the high side as it means it would take STC, 9.84 years of fcf income to pay off all of its debts.
STC's Debt to FCF ratio of 9.84 is on the low side compared to the rest of the industry. STC is outperformed by 71.43% 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.
The Debt to Equity ratio of STC (0.32) is better than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 9.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC7.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
STC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.12%.
STC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.07% yearly.
STC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.45%.
Measured over the past years, STC shows a small growth in Revenue. The Revenue has been growing by 3.42% on average per year.
EPS 1Y (TTM)-71.12%
EPS 3Y-32.03%
EPS 5Y-2.07%
EPS growth Q2Q0%
Revenue 1Y (TTM)-26.45%
Revenue growth 3Y-0.45%
Revenue growth 5Y3.42%
Revenue growth Q2Q-11.24%
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 76.53% on average per year.
The Revenue is expected to grow by 14.05% on average over the next years. This is quite good.
EPS Next Y97.08%
EPS Next 2Y76.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.44%
Revenue Next 2Y14.05%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.22, which means the current valuation is very expensive for STC.
Based on the Price/Earnings ratio, STC is valued a bit more expensive than 70.00% of the companies in the same industry.
STC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 16.85, STC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STC indicates a slightly more expensive valuation: STC is more expensive than 65.00% of the companies listed in the same industry.
STC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 16.85 |
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 ratio is a bit more expensive when compared to the industry. STC is more expensive than 70.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 13.67 |
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 76.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y76.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.26, STC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, STC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of STC is nicely growing with an annual growth rate of 9.20%!
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)9.2%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
165.98% of the earnings are spent on dividend by STC. This is not a sustainable payout ratio.
The dividend of STC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP165.98%
EPS Next 2Y76.53%
EPS Next 3YN/A
STEWART INFORMATION SERVICES
NYSE:STC (5/3/2024, 7:20:00 PM)
After market: 63.11 0 (0%)63.11
+0.71 (+1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.22 | ||
| Fwd PE | 16.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.57% | ||
| PM (TTM) | 1.35% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-71.12%
EPS 3Y-32.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y97.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.45%
Revenue growth 3Y-0.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y