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Stifel Financial Corp (SF)
NYSE:SF
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Stifel Financial
(NYSE:SF)
71Outperform
Positive Factors
Earnings
Stifel reported stronger than expected fourth quarter results, with revenue and earnings exceeding analyst expectations.
Growth Outlook
Management provided a highly optimistic outlook for 2025, suggesting that Stifel is well-positioned for growth across its Wealth Management and Institutional segments.
Negative Factors
Valuation Concerns
The recent stock appreciation and expectations create a difficult setup for near-term outperformance.
Stifel Financial (SF) vs. S&P 500 (SPY)
Market Cap
$9.51B
Dividend Yield1.74%
Average Volume (3M)774.36K
Price to Earnings (P/E)15.4
Beta (1Y)1.38
Revenue Growth15.33%
EPS Growth46.64%
CountryUS
Employees9,000
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)6.25
Shares Outstanding103,755,000
10 Day Avg. Volume791,654
30 Day Avg. Volume774,364
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)N/A
Price to Sales (P/S)2.51
Price to Cash Flow (P/CF)3.60
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$128.40Price Target Upside36.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Stifel Financial Business Overview & Revenue Model
Company DescriptionStifel Financial Corp. is a diversified financial services holding company headquartered in St. Louis, Missouri. The company operates through several segments, including Global Wealth Management, Institutional Group, and Other segments, offering a broad range of services such as investment banking, securities brokerage, trading, investment advisory, and related financial services. Stifel serves individuals, corporations, and institutions, providing comprehensive solutions to meet their financial goals and needs.
How the Company Makes MoneyStifel Financial makes money through various revenue streams primarily driven by its core business segments. The Global Wealth Management segment generates revenue through commissions and fees from advisory services, asset management, and brokerage services offered to individual and institutional clients. The Institutional Group segment earns revenue from underwriting, advisory services related to mergers and acquisitions, and trading activities. Stifel also benefits from interest income on client balances and portfolio investments. Strategic partnerships and acquisitions may also enhance their service offering and expand their market reach, contributing to their overall earnings.
Stifel Financial Financial Statement Overview
Summary
Stifel Financial demonstrates solid financial health with strong revenue growth and stable profitability. The balance sheet shows reduced leverage and a strong equity base, reflecting financial stability. However, the lack of EBIT and EBITDA reporting for 2024 limits a comprehensive profitability analysis. The cash flow remains positive, but there is room for improvement in cash flow efficiency.Income Statement
Stifel Financial has demonstrated a strong revenue growth with a significant increase from $4.29 billion in 2023 to $5.95 billion in 2024, reflecting a robust growth rate of 38.8%. The gross profit margin improved from 79.8% in 2023 to 51% in 2024, but there was no EBIT or EBITDA reported for 2024, which limits profitability analysis. The net profit margin in 2024 was 12.3%, up from 12.2% in 2023, indicating stable profitability.74
Positive
Balance Sheet
The company maintains a strong equity position with a steady increase in stockholders' equity from $5.29 billion in 2023 to $5.69 billion in 2024. The debt-to-equity ratio decreased from 0.22 in 2023 to 0.15 in 2024, reflecting reduced leverage. The equity ratio also improved from 14% in 2023 to 14.3% in 2024, suggesting a stable capital structure.82
Very Positive
Cash Flow
Stifel Financial's free cash flow grew from $447.35 million in 2023 to $490.44 million in 2024, representing a growth rate of 9.6%. The operating cash flow to net income ratio was 0.67 in 2024, down from 0.95 in 2023, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio improved slightly, suggesting effective cash management.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.95B | 4.29B | 4.33B | 4.61B | 3.70B | Gross Profit |
| 3.04B | 3.43B | 1.75B | 1.15B | 849.82M | EBIT |
| -2.00B | 769.90M | 979.01M | 1.07B | 651.16M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 731.38M | 522.54M | 662.15M | 824.86M | 503.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.23B | 3.36B | 1.67B | 4.08B | 4.51B | Total Assets |
| 39.90B | 37.73B | 37.20B | 34.05B | 26.60B | Total Debt |
| 867.43M | 1.18B | 1.17B | 1.17B | 1.17B | Net Debt |
| -1.78B | -2.19B | -1.03B | -789.85M | -1.11B | Total Liabilities |
| 34.21B | 32.43B | 31.87B | 29.01B | 22.37B | Stockholders Equity |
| 5.69B | 5.29B | 5.33B | 5.03B | 4.24B |
| Cash Flow | Free Cash Flow | |||
| 490.44M | 447.35M | 1.08B | 683.92M | 1.59B | Operating Cash Flow |
| 490.44M | 499.33M | 1.16B | 872.09M | 1.66B | Investing Cash Flow |
| -179.13M | 923.96M | -4.32B | -6.97B | -1.69B | Financing Cash Flow |
| 980.10M | -254.58M | 3.19B | 5.79B | 1.20B |
Stifel Financial Technical Analysis
Negative
93.90
Price Trends
107.81
Negative
108.24
Negative
96.20
Negative
Market Momentum
-3.98
Positive
31.55
Neutral
17.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SF, the sentiment is Negative. The current price of 93.9 is below the 20-day moving average (MA) of 103.57, below the 50-day MA of 107.81, and below the 200-day MA of 96.20, indicating a bearish trend. The MACD of -3.98 indicates Positive momentum. The RSI at 31.55 is Neutral, neither overbought nor oversold. The STOCH value of 17.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SF.
Stifel Financial Risk Analysis
Stifel Financial disclosed 26 risk factors in its most recent earnings report. Stifel Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stifel Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.20B | 14.00 | 19.07% | 1.34% | 13.79% | 28.57% | |
77 Outperform | $23.23B | 23.79 | 42.26% | 0.39% | 23.20% | 2.38% | |
74 Outperform | $4.59B | 33.37 | 34.27% | 4.13% | 39.75% | ― | |
73 Outperform | $7.44B | 22.76 | 23.03% | 1.55% | 22.67% | 47.20% | |
71 Outperform | $9.51B | 15.42 | 13.32% | 1.74% | 15.33% | 46.64% | |
65 Neutral | $126.97M | 27.63 | 4.54% | 1.53% | 11.61% | -36.95% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
SF
Stifel Financial
93.90
20.94
28.70%
EVR
Evercore Partners
196.97
8.74
4.64%
LPLA
LPL Financial
313.23
49.18
18.63%
RJF
Raymond James Financial
139.70
22.42
19.12%
MC
Moelis
59.79
9.37
18.58%
SFBC
Sound Financial Bancorp
49.36
10.20
26.05%
Stifel Financial Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -18.14% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance for Stifel Financial in 2024, with record-breaking revenue and growth in key segments such as Global Wealth Management and Investment Banking. Despite some challenges like the decline in net interest income and higher non-comp expenses, the overall outlook remains positive, bolstered by dividend increases and a favorable market environment for 2025.Highlights
Record-Breaking Revenue and Growth
Stifel Financial generated record net revenue for the year 2024, driven by strong performance in Global Wealth Management and significant growth in institutional revenue. Earnings per share increased by 46%.
Global Wealth Management Success
Global Wealth Management recorded another record year with record client assets and growth in transactional activity. The segment's revenue was a record $865 million with pretax margins of 37%.
Institutional Revenue Rebound
Institutional segment revenue increased by more than $360 million year-over-year, marking the second-highest annual revenue for the business.
Strong Investment Banking and Advisory Revenue
Investment Banking revenue increased nearly 50% in the fourth quarter, with advisory revenue up 47% year-over-year and capital raising revenue showing strong growth.
Dividend Increase
Stifel's Board authorized a 10% increase in the common stock dividend to $1.84 per share, reflecting confidence in the company's financial position.
Lowlights
Decline in Net Interest Income
Net interest income declined by $110 million due to the Federal Reserve rate cut, although it was partially offset by other revenue increases.
Higher Non-Comp Expenses
Non-compensation expenses came in 9% higher than Street expectations due to higher provision and legal expenses.
Challenges in Institutional Equities
The institutional equities business is still not back to normalized productivity levels despite improvements in other areas.
Company Guidance
In the fourth quarter of 2024, Stifel Financial reported record net revenue of $1.36 billion, marking a 5% increase from its previous high in Q4 2021. Key metrics included a 46% increase in earnings per share and a pretax margin exceeding 20%. Global Wealth Management set new records with $865 million in revenue, driven by robust client asset growth to $501 billion, alongside a 23% return on tangible common equity. Institutional revenue saw a 33% year-over-year rise to $478 million, with investment banking revenue surging by nearly 50%. The firm's net interest income remained stable, with a 3.12% net interest margin and balance sheet growth anticipated to further bolster NII in 2025. Looking ahead, Stifel forecasts total net revenue between $5.25 billion and $5.75 billion for 2025, targeting a 56% to 58% compensation ratio and non-comp operating ratios between 19% and 21%. The firm also announced a 10% increase in its common stock dividend to $1.84 per share.Stifel Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Stifel Financial Reports Growth in Client Assets
Positive
Feb 27, 2025
On February 27, 2025, Stifel Financial Corp. reported its operating results for January 31, 2025, highlighting significant growth in client assets under administration and fee-based assets, which increased by 14% and 18% respectively, compared to the previous year. This growth was attributed to stronger markets and a robust recruiting pipeline. However, the company also noted a seasonal decline in Sweep deposits, resulting in a 4% decrease during January, while client money market and insured products saw a 7% increase from the same period last year.
Business Operations and Strategy
Stifel Financial Updates Wealth Accumulation Plan 2025
Neutral
Feb 7, 2025
On February 4, 2025, Stifel Financial Corp.’s Board of Directors’ Compensation Committee approved the Wealth Accumulation Plan 2025 Restatement, modifying certain provisions and restating previous documents. The committee also approved a Restricted Stock Unit Award Agreement and a Deferred Award Agreement, potentially impacting the company’s financial structuring and stakeholder interests.
Business Operations and StrategyFinancial Disclosures
Stifel Financial Reports Record Client Assets Growth
Positive
Dec 19, 2024
Stifel Financial Corp. reported a record increase in client assets under management, reaching $514 billion in November 2024, driven by strong equity markets and financial advisor recruiting. The firm’s Institutional Group saw improved client activity and investment banking pipeline, indicating a positive operating environment.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.