STT

State StreetNYSE:STT Stock Report

Market Cap

US$32.1b

7D

0.03%

1Y

41.0%

Updated

16 Sep, 2021

Data

Company Financials +
STT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

STT Overview

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

State Street Competitors

Price History & Performance

Summary of all time highs, changes and price drops for State Street
Historical stock prices
Current Share PriceUS$87.92
52 Week HighUS$56.63
52 Week LowUS$94.64
Beta1.56
1 Month Change-0.26%
3 Month Change11.50%
1 Year Change40.97%
3 Year Change-1.84%
5 Year Change23.76%
Change since IPO1,680.66%

Recent News & Updates

Sep 15
State Street (NYSE:STT) Will Pay A Larger Dividend Than Last Year At US$0.57

State Street (NYSE:STT) Will Pay A Larger Dividend Than Last Year At US$0.57

State Street Corporation's ( NYSE:STT ) dividend will be increasing to US$0.57 on 12th of October. This makes the...

Aug 31
State Street (NYSE:STT) Is Increasing Its Dividend To US$0.57

State Street (NYSE:STT) Is Increasing Its Dividend To US$0.57

State Street Corporation ( NYSE:STT ) will increase its dividend on the 12th of October to US$0.57. This will take the...

Shareholder Returns

STTUS Capital MarketsUS Market
7D0.03%-0.4%-0.6%
1Y41.0%63.9%33.7%

Return vs Industry: STT underperformed the US Capital Markets industry which returned 61.6% over the past year.

Return vs Market: STT exceeded the US Market which returned 30.7% over the past year.

Price Volatility

Is STT's price volatile compared to industry and market?
STT volatility
STT Beta1.56
Industry Beta1.19
Market Beta1

Stable Share Price: STT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
179239,146Ron O’Hanleyhttps://www.statestreet.com

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 custody; product accounting; daily pricing and administration; master trust and master custody; depotbank; record-keeping; cash management; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors. The company also engages in the provision of portfolio management and risk analytics, as well as trading and post-trade settlement services with integrated compliance and managed data throughout.

Valuation

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

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STT ($87.92) is trading below our estimate of fair value ($127.6)

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 (14.4x) compared to the US Capital Markets industry average (13.3x).

PE vs Market: STT is good value based on its PE Ratio (14.4x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: STT is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: STT is good value based on its PB Ratio (1.4x) 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?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STT's forecast earnings growth (6.3% per year) is above the savings rate (2%).

Earnings vs Market: STT's earnings (6.3% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: STT's revenue (4.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: STT's revenue (4.9% 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 (11%).


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 (58.7%).


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?

2.59%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 16 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 12 202112 days from Ex DividendBuy in the next 14 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STT's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: STT's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (27.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ron O’Hanley (64 yo)

2.67yrs

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 ($USD9.31M) is about average for companies of similar size in the US market ($USD11.26M).

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 (2.3 years average tenure).


Board Members

Experienced Board: STT's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

State Street Corporation's 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$32.146b
  • Shares outstanding: 365.63m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 05:00
End of Day Share Price2021/09/15 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.