NYSE:STT

Stock Analysis Report

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Executive Summary

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. More Details


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has State Street's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

STT

4.0%

US Capital Markets

3.9%

US Market


1 Year Return

6.7%

STT

11.6%

US Capital Markets

18.5%

US Market

Return vs Industry: STT underperformed the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: STT underperformed the US Market which returned 17.2% over the past year.


Shareholder returns

STTIndustryMarket
7 Day2.7%4.0%3.9%
30 Day-12.9%-4.2%-4.3%
90 Day-6.0%1.9%8.1%
1 Year10.4%6.7%14.4%11.6%21.2%18.5%
3 Year-33.5%-38.9%18.2%9.0%38.2%29.0%
5 Year-2.6%-14.0%69.5%47.6%84.3%63.4%

Price Volatility Vs. Market

How volatile is State Street's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is State Street undervalued compared to its fair value and its price relative to the market?

9.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STT ($59.33) is trading above our estimate of fair value ($51.48)

Significantly Below Fair Value: STT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STT is good value based on its PE Ratio (9.4x) compared to the US Capital Markets industry average (22.3x).

PE vs Market: STT is good value based on its PE Ratio (9.4x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STT is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (4.2x).


Next Steps

Future Growth

How is State Street forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STT's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: STT's earnings are forecast to decline over the next 3 years (-2.5% per year).

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

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

High Growth Revenue: STT'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: STT's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has State Street performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STT has high quality earnings.

Growing Profit Margin: STT's current net profit margins (19.1%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: STT's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: STT's earnings growth over the past year (8.2%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: STT earnings growth over the past year (8.2%) exceeded the Capital Markets industry 7.2%.


Return on Equity

High ROE: STT's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is State Street'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


Financial Institutions Analysis

Asset Level: STT's Assets to Equity ratio (11.3x) is moderate.

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

Low Risk Liabilities: 78% of STT's liabilities are made up of primarily low risk sources of funding.

Loan Level: STT has an appropriate level of Loans to Assets ratio (10%).

Low Risk Deposits: STT's Loans to Deposits ratio (13%) is appropriate.

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


Next Steps

Dividend

What is State Street current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STT's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: STT's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.89%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), STT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STT's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Ron O’Hanley (63 yo)

1.67yrs

Tenure

US$8,699,401

Compensation

Mr. Ronald Philip O’Hanley, also known as Ron, has been the Chief Executive Officer of State Street Corporation since January 1, 2019 and has been its President since November 6, 2017. He served as Chief O ...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD8.70M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald O’Hanley
Chairman1.67yrsUS$8.70m0.029%
$ 6.1m
Eric Aboaf
Executive VP & CFO3.5yrsUS$5.38m0.011%
$ 2.3m
Jeffrey Carp
Executive Vice President14.67yrsUS$6.49m0.040%
$ 8.4m
Andrew Erickson
Chief Productivity Officer & CEO of International Business6.42yrsUS$6.17m0.0096%
$ 2.0m
Francisco Alberto Aristeguieta Silva
CEO & Head of Institutional Services1.17yrsUS$13.35m0.018%
$ 3.7m
Louis Maiuri
Executive VP & COO1.5yrsno data0.024%
$ 5.0m
Ian Appleyard
Executive VP2.33yrsno data0.0047%
$ 978.4k
Ali El Abboud
EVP & Chief Technology Officer1yrno datano data
Brian Franz
Executive VP & Global Chief Information Officer0.67yrno data0.014%
$ 2.9m
Michael Richards
Executive VP & Chief Administrative Officer0.17yrno data0.0058%
$ 1.2m
Ilene Bieler
Executive VP & Global Head of IRno datano datano data
David Phelan
Executive VP & General Counsel0.17yrno data0.028%
$ 5.8m

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: STT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ronald O’Hanley
Chairman1.67yrsUS$8.70m0.029%
$ 6.1m
Gregory Summe
Independent Director19.67yrsUS$345.50k0.026%
$ 5.3m
Richard Sergel
Independent Director21.67yrsUS$360.01k0.018%
$ 3.7m
Sara Mathew
Independent Director2.5yrsUS$305.01k0.0024%
$ 508.0k
William Meaney
Independent Director2.5yrsUS$320.36k0.0025%
$ 520.6k
Sean O'Sullivan
Independent Director3.33yrsUS$305.01k0.0030%
$ 633.5k
Patrick de Saint-Aignan
Independent Director11.5yrsUS$375.76k0.010%
$ 2.1m
Amelia Fawcett
Independent Lead Director1.33yrsUS$410.01k0.012%
$ 2.5m
Marie Chandoha
Independent Director1yrUS$201.69k0.0015%
$ 324.1k
William Freda
Independent Director5.75yrsUS$375.76k0.0046%
$ 968.0k
Lynn Dugle
Independent Director4.75yrsUS$357.36k0.0041%
$ 853.0k

3.3yrs

Average Tenure

64yo

Average Age

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

State Street Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: State Street Corporation
  • Ticker: STT
  • Exchange: NYSE
  • Founded: 1792
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$20.907b
  • Shares outstanding: 352.38m
  • Website: https://www.statestreet.com

Number of Employees


Location

  • State Street Corporation
  • State Street Financial Center
  • One Lincoln Street
  • Boston
  • Massachusetts
  • 2111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STTNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
ZYADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
STT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1980
0L9GLSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
STT.PRDNYSE (New York Stock Exchange)DEP SHS 1/4000 DUSUSDFeb 2014
STT.PRGNYSE (New York Stock Exchange)DEP SHS PFD GUSUSDApr 2016
A2RSCJDB (Deutsche Boerse AG)5.625%-FRN PERP USD 'H'DEUSDSep 2018
S1TT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJan 2020

Biography

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. It offers investment servicing products and services, including ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:55
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.