STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
USA - NYSE:STC - US8603721015 - Common Stock
75.28 USD
-1.3 (-1.7%)
75.28 USD
0 (0%)
Taking everything into account, STC scores 4 out of 10 in our fundamental rating. STC was compared to 146 industry peers in the Insurance industry. Both the profitability and financial health of STC have multiple concerns. STC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year STC was profitable.
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
The Return On Assets of STC (3.16%) is better than 67.81% of its industry peers.
Looking at the Return On Equity, with a value of 6.11%, STC is doing worse than 68.49% of the companies in the same industry.
STC has a better Return On Invested Capital (4.33%) than 78.08% 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 | 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
The Profit Margin of STC (3.29%) is worse than 70.55% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
STC's Operating Margin of 5.22% is on the low side compared to the rest of the industry. STC is outperformed by 73.97% of its industry peers.
In the last couple of years the Operating Margin of STC has declined.
| 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.
Compared to 1 year ago, STC has more shares outstanding
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
STC has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as STC would need 3.73 years to pay back of all of its debts.
STC's Debt to FCF ratio of 3.73 is in line compared to the rest of the industry. STC outperforms 43.84% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that STC is not too dependend on debt financing.
STC has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC7.77%
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 52.76%, 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 13.97%.
STC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)52.76%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.25%
Revenue 1Y (TTM)13.97%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%19.81%
3.2 Future
STC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.38% yearly.
The Revenue is expected to grow by 10.79% on average over the next years. This is quite good.
EPS Next Y26.92%
EPS Next 2Y29.55%
EPS Next 3Y26.38%
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
With a Price/Earnings ratio of 19.40, STC is valued on the expensive side.
Based on the Price/Earnings ratio, STC is valued a bit more expensive than the industry average as 67.12% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of STC to the average of the S&P500 Index (27.38), we can say STC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.31, STC is valued correctly.
STC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of STC to the average of the S&P500 Index (22.86), we can say STC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
STC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.65 | ||
| EV/EBITDA | 12.01 |
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.
A more expensive valuation may be justified as STC's earnings are expected to grow with 26.38% in the coming years.
PEG (NY)0.72
PEG (5Y)2.39
EPS Next 2Y29.55%
EPS Next 3Y26.38%
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 2.74%. 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 3.44.
Compared to an average S&P500 Dividend Yield of 2.38, STC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
63.35% 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.
DP63.35%
EPS Next 2Y29.55%
EPS Next 3Y26.38%
75.28
-1.3 (-1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.48%
Inst Owner Change-3.84%
Ins Owners1.73%
Ins Owner Change2.31%
Market Cap2.11B
Analysts46.67
Price Target74.46 (-1.09%)
Short Float %2.1%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-2.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.14%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-7.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 13.31 | ||
| P/S | 0.79 | ||
| P/FCF | 17.65 | ||
| P/OCF | 12.58 | ||
| P/B | 1.47 | ||
| P/tB | 11.29 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)3.88
EY5.15%
EPS(NY)5.66
Fwd EY7.51%
FCF(TTM)4.27
FCFY5.67%
OCF(TTM)5.98
OCFY7.95%
SpS95.29
BVpS51.35
TBVpS6.67
PEG (NY)0.72
PEG (5Y)2.39
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%
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 Turnover0.96
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
WACC7.77%
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)52.76%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.25%
EPS Next Y26.92%
EPS Next 2Y29.55%
EPS Next 3Y26.38%
EPS Next 5YN/A
Revenue 1Y (TTM)13.97%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%19.81%
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%