Does Stewart's Strong Agency Services Growth and Dividend Hike Signal Sustained Momentum for STC?

• Stewart Information Services Corporation recently reported third-quarter 2025 results, with revenue rising to US$796.92 million and net income reaching US$44.26 million, both higher than the prior year.
• The company raised its annual dividend for the fifth consecutive year, and agency services experienced a 28% year-over-year revenue increase, highlighting business momentum in key states.
• We'll explore how these robust agency services gains shape Stewart's investment narrative and future growth outlook.

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Stewart Information Services Investment Narrative Recap

To invest in Stewart Information Services, you need to believe in a rebound of the housing market and the company’s ability to capture volume through agency services growth and operational leverage. While the latest quarterly results showcased strong gains in revenue and earnings, these positive headlines do not materially alter the fact that housing market weakness remains the most important near-term catalyst and also the primary risk to the business. The third-quarter performance affirms that Stewart can generate solid momentum in pockets of demand, but this does not guarantee relief from sector headwinds that linger.

Read the full narrative on Stewart Information Services (it's free!)

Stewart Information Services is projected to reach $3.4 billion in revenue and $214.5 million in earnings by 2028. This outlook assumes annual revenue growth of 10.3% and a $141.2 million increase in earnings from the current level of $73.3 million.

Uncover how Stewart Information Services' forecasts yield a $75.90 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided fair value estimates ranging from US$44.39 to US$75.90, across three different analyses. Despite this wide gap, agency services’ 28 percent revenue increase adds context on how business momentum might affect future share price outcomes, especially given ongoing risks to housing activity that many should keep in mind…

Explore 3 other fair value estimates on Stewart Information Services - why the stock might be worth 38% less than the current price!

Build Your Own Stewart Information Services Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Stewart Information Services research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Stewart Information Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Stewart Information Services' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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