DB:SIU

Stock Analysis Report

Stewart Information Services

Executive Summary

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction services.

Rewards

Trading at 27.2% below its fair value

Earnings grew by 75.8% over the past year

Pays a high and reliable dividend of 2.94%

Risk Analysis

Earnings are forecast to decline by an average of -19.8% per year for the next 3 years

Large one-off items impacting financial results

Significant insider selling over the past 3 months



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Stewart Information Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SIU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SIU

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

-4.8%

SIU

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: SIU underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: SIU underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

SIUIndustryMarket
7 Day0%0.4%0.07%
30 Day-3.2%0.8%1.9%
90 Day5.2%4.5%7.1%
1 Year-1.9%-4.8%32.7%27.1%18.4%14.8%
3 Year-1.7%-9.9%64.7%44.8%17.4%7.0%
5 Year31.8%14.8%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is Stewart Information Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Stewart Information Services undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIU (€36.4) is trading below our estimate of fair value (€49.98)

Significantly Below Fair Value: SIU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SIU is good value based on its PE Ratio (10.7x) compared to the Insurance industry average (11.9x).

PE vs Market: SIU is good value based on its PE Ratio (10.7x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: SIU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIU is overvalued based on its PB Ratio (1.3x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Stewart Information Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIU's earnings are forecast to decline over the next 3 years (-19.8% per year).

Earnings vs Market: SIU's earnings are forecast to decline over the next 3 years (-19.8% per year).

High Growth Earnings: SIU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIU's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: SIU's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIU's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Stewart Information Services performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIU has a large one-off gain of $36.8M impacting its September 30 2019 financial results.

Growing Profit Margin: SIU's current net profit margins (4.9%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SIU's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: SIU's earnings growth over the past year (75.8%) exceeds its 5-year average (23.9% per year).

Earnings vs Industry: SIU earnings growth over the past year (75.8%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: SIU's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stewart Information Services's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SIU has a low level of unsold assets or inventory.

Debt Coverage by Assets: SIU's debt is covered by short term assets (assets are 4.2x debt).


Financial Institutions Analysis

Asset Level: SIU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SIU has a sufficient allowance for bad loans.

Low Risk Liabilities: SIU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SIU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SIU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SIU has an appropriate level of bad loans.


Next Steps

Dividend

What is Stewart Information Services's current dividend yield, its reliability and sustainability?

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: SIU's dividend (2.94%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: SIU's dividend (2.94%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: SIU's dividends per share have been stable in the past 10 years.

Growing Dividend: SIU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.5%), SIU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIU's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).


Next Steps

Management

What is the CEO of Stewart Information Services's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Fred Eppinger (60yo)

0.3yrs

Tenure

US$148,500

Compensation

Mr. Frederick Henry Eppinger, Jr., also known as Fred, is Chief Executive Officer at Stewart Information Services Corporation since September 10, 2019. Mr. Eppinger serves as Chief Executive Officer at All ...


Management Age and Tenure

3.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SIU's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SIU's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: SIU insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Buy€416,11507 Nov 19
Frederick Eppinger
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares11,316
Max Price€37.03
Sell€547,70231 Oct 19
Glenn Christenson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max Price€36.51
Sell€156,66513 Sep 19
James Chadwick
EntityIndividual
Shares4,906
Max Price€31.93
Sell€1,941,70313 Sep 19
Ancora Advisors, LLC
EntityCompany
Shares60,805
Max Price€31.93
Buy€47,43513 Sep 19
Clifford Bradley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max Price€31.62
Sell€41,46506 Mar 19
Steven Lessack
EntityIndividual
Shares1,093
Max Price€37.94

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Fred Eppinger (60yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$148.50k
  • Matt Morris (47yo)

    Advisor & Director

    • Tenure: 3.3yrs
    • Compensation: US$2.52m
  • David Hisey (59yo)

    CFO, Secretary & Treasurer

    • Tenure: 2.3yrs
    • Compensation: US$1.97m
  • Glenn Clements (71yo)

    Director of Stewart Title Insurance Company of New York & Executive VP of Stewart Title

    • Tenure: 3.7yrs
    • Compensation: US$1.41m
  • Brian Glaze (50yo)

    Principal Accounting Officer

    • Tenure: 11.8yrs
  • John Killea (63yo)

    Chief Legal Officer

    • Tenure: 2.9yrs
    • Compensation: US$1.45m
  • John Arcidiacono

    Chief Marketing Officer

    • Nat Otis

      Director of IR / Senior Vice President - Finance

      • Tenure: 6yrs
    • Brad Rable (52yo)

      Chief Information Officer

      • Tenure: 4.8yrs
    • Ann Manal (52yo)

      Chief Human Resources Officer

      • Tenure: 3.4yrs

    Board Members

    • Glenn Christenson (70yo)

      Independent Director

      • Tenure: 5.7yrs
      • Compensation: US$160.50k
    • William Hobby (58yo)

      Advisory Director

      • Tenure: 5.7yrs
      • Compensation: US$130.00k
    • Fred Eppinger (60yo)

      CEO & Director

      • Tenure: 0.3yrs
      • Compensation: US$148.50k
    • Robert Clarke (76yo)

      Independent Director

      • Tenure: 15.2yrs
      • Compensation: US$159.00k
    • Tom Apel (58yo)

      Chairman of the Board

      • Tenure: 5.7yrs
      • Compensation: US$196.00k
    • Matt Morris (47yo)

      Advisor & Director

      • Tenure: 3.3yrs
      • Compensation: US$2.52m
    • Karen Pallotta (55yo)

      Director

      • Tenure: 0.08yrs
    • Clifford Bradley (67yo)

      Independent Director

      • Tenure: 3.1yrs
      • Compensation: US$139.00k
    • Manolo Sánchez Rodríguez (52yo)

      Director

      • Tenure: 0.08yrs

    Company Information

    Stewart Information Services Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Stewart Information Services Corporation
    • Ticker: SIU
    • Exchange: DB
    • Founded: 1893
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$966.523m
    • Listing Market Cap: US$871.320m
    • Shares outstanding: 23.71m
    • Website: https://www.stewart.com

    Number of Employees


    Location

    • Stewart Information Services Corporation
    • 1360 Post Oak Boulevard
    • Suite 100
    • Houston
    • Texas
    • 77056
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    STCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
    SIUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

    Biography

    Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction services. The company operates in two segments, Title Insurance and Related Services, and Ancillary Services and Corporate. The Title Insurance and Related Services segment is involved in searching, examining, closing, and insuring the condition of the title to real property. This segment also offers home and personal insurance services; and services for tax-deferred exchanges. The Ancillary Services and Corporate segment primarily provides search and valuation services to the mortgage industry. The company offers its products and services through its directly owned policy-issuing offices, network of independent agencies, and other businesses. It serves homebuyers and sellers, residential and commercial real estate professionals, mortgage lenders and servicers, title agencies and real estate attorneys, home builders, and mortgage brokers and investors. The company operates in the United States, Canada, the United Kingdom, Australia, Central Europe, and internationally. Stewart Information Services Corporation was founded in 1893 and is headquartered in Houston, Texas. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 21:24
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.