NYSE:STT

Stock Analysis Report

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Market Cap

US$29.9b

Last Updated

2021/08/01 22:14 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

STT

0.9%

US Capital Markets

-0.4%

US Market


1 Year Return

36.6%

STT

57.6%

US Capital Markets

35.9%

US Market

Return vs Industry: STT underperformed the US Capital Markets industry which returned 56.8% over the past year.

Return vs Market: STT matched the US Market which returned 35.9% over the past year.


Shareholder returns

STTIndustryMarket
7 Day2.1%0.9%-0.4%
30 Day3.4%0.5%-0.3%
90 Day2.9%5.1%3.1%
1 Year40.5%36.6%60.9%57.6%38.0%35.9%
3 Year9.8%0.3%77.4%64.6%62.9%52.7%
5 Year45.7%28.2%169.8%137.5%121.3%96.9%

Long-Term 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?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STT ($87.14) is trading below our estimate of fair value ($124.76)

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


Price To Earnings Ratio

PE vs Industry: STT is poor value based on its PE Ratio (13.7x) compared to the US Capital Markets industry average (12.9x).

PE vs Market: STT is good value based on its PE Ratio (13.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: STT is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: STT is good value based on its PB Ratio (1.3x) compared to the US Capital Markets industry average (61.4x).


Future Growth

How is State Street forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STT's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: STT's earnings (4.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: STT's earnings are forecast to grow, but not significantly.

Revenue vs Market: STT's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: STT's revenue (3.1% per year) is forecast to grow slower than 20% 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 (10.7%).


Past Performance

How has State Street performed over the past 5 years?

1.8%

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 lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: STT's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: STT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STT had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Capital Markets industry average (55.6%).


Return on Equity

High ROE: STT's Return on Equity (9.4%) is considered low.


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 (13x) is moderate.

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

Low Risk Liabilities: 88% 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 (9%).

Low Risk Deposits: STT's Loans to Deposits ratio (12%) is appropriate.

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


Dividend

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

2.62%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 12 202112 days from Ex DividendBuy in the next 59 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STT's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: STT's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (32.7%), 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 (30.3% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Ron O’Hanley (64 yo)

2.5yrs

Tenure

US$9,309,980

Compensation

Mr. Ronald Philip O’Hanley, also known as Ron, has been an Independent Director of Unum Group since February 26, 2015. He serves as Chairman at State Street Corporation since 2020 and also serves as its P...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD9.31M) is about average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

Experienced Management: STT's management team is considered experienced (2.2 years average tenure).


Board Members

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$29.933b
  • Shares outstanding: 343.50m
  • 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


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 Analysis2021/08/01 22:14
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.