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STC

Stewart Information ServicesNYSE:STC Stock Report

Last Price

US$68.64

Market Cap

US$1.8b

7D

-11.6%

1Y

36.6%

Updated

23 Jan, 2022

Data

Company Financials +
STC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends5/6

STC Stock Overview

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

Stewart Information Services Competitors

Chubb

NYSE:CB

US$82.7b

Progressive

NYSE:PGR

US$63.1b

Travelers Companies

NYSE:TRV

US$39.2b

Allstate

NYSE:ALL

US$34.2b

Price History & Performance

Summary of all time highs, changes and price drops for Stewart Information Services
Historical stock prices
Current Share PriceUS$68.64
52 Week HighUS$81.00
52 Week LowUS$45.58
Beta1.11
1 Month Change-12.09%
3 Month Change-5.00%
1 Year Change36.60%
3 Year Change56.57%
5 Year Change58.52%
Change since IPO1,093.74%

Recent News & Updates

Jan 20
Here's Why I Think Stewart Information Services (NYSE:STC) Might Deserve Your Attention Today

Here's Why I Think Stewart Information Services (NYSE:STC) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

STCUS InsuranceUS Market
7D-11.6%-4.0%-6.1%
1Y36.6%19.4%4.2%

Return vs Industry: STC exceeded the US Insurance industry which returned 19.4% over the past year.

Return vs Market: STC exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is STC's price volatile compared to industry and market?
STC volatility
STC Average Weekly Movement3.9%
Insurance Industry Average Movement4.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: STC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
18936,600Fred Eppingerhttps://www.stewart.com

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.

Stewart Information Services Fundamentals Summary

How do Stewart Information Services's earnings and revenue compare to its market cap?
STC fundamental statistics
Market CapUS$1.85b
Earnings (TTM)US$297.39m
Revenue (TTM)US$3.08b

6.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STC income statement (TTM)
RevenueUS$3.08b
Cost of RevenueUS$1.36b
Gross ProfitUS$1.72b
ExpensesUS$1.42b
EarningsUS$297.39m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)11.06
Gross Margin55.84%
Net Profit Margin9.65%
Debt/Equity Ratio22.6%

How did STC perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

12%

Payout Ratio

Valuation

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

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STC ($68.64) is trading below our estimate of fair value ($89.27)

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


Price To Earnings Ratio

PE vs Industry: STC is good value based on its PE Ratio (6.2x) compared to the US Insurance industry average (10.9x).

PE vs Market: STC is good value based on its PE Ratio (6.2x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STC is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (1.1x).


Future Growth

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

-23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STC's earnings are forecast to decline over the next 3 years (-23.1% per year).

Earnings vs Market: STC's earnings are forecast to decline over the next 3 years (-23.1% per year).

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

Revenue vs Market: STC's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: STC's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STC's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

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

41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STC has high quality earnings.

Growing Profit Margin: STC's current net profit margins (9.7%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: STC's earnings have grown significantly by 41.4% per year over the past 5 years.

Accelerating Growth: STC's earnings growth over the past year (212.4%) exceeds its 5-year average (41.4% per year).

Earnings vs Industry: STC earnings growth over the past year (212.4%) exceeded the Insurance industry 38.1%.


Return on Equity

High ROE: STC's Return on Equity (25.8%) is considered high.


Financial Health

How is Stewart Information Services's financial position?


Financial Position Analysis

Short Term Liabilities: STC's short term assets ($737.7M) exceed its short term liabilities ($209.1M).

Long Term Liabilities: STC's short term assets ($737.7M) do not cover its long term liabilities ($949.7M).


Debt to Equity History and Analysis

Debt Level: STC has more cash than its total debt.

Reducing Debt: STC's debt to equity ratio has increased from 18.9% to 22.6% over the past 5 years.

Debt Coverage: STC's debt is well covered by operating cash flow (142.5%).

Interest Coverage: STC's interest payments on its debt are well covered by EBIT (163.1x coverage).


Balance Sheet


Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STC's dividend (2.19%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: STC's dividend (2.19%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.6%), STC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STC's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Fred Eppinger (62 yo)

2.33yrs

Tenure

US$4,037,845

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD4.04M) is about average for companies of similar size in the US market ($USD3.74M).

Compensation vs Earnings: Fred's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: STC's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: STC's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STC 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

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


Key Information

  • Name: Stewart Information Services Corporation
  • Ticker: STC
  • Exchange: NYSE
  • Founded: 1893
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: US$1.846b
  • Shares outstanding: 26.89m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 23:24
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.