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Stewart Information Services Corp. (STC)
NYSE:STC
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Stewart Information Services
(NYSE:STC)72Outperform
Stewart Information Services (STC) vs. S&P 500 (SPY)
Market Cap
$1.91B
Dividend Yield2.77%
Average Volume (3M)175.41K
Price to Earnings (P/E)26.4
Beta (1Y)0.91
Revenue Growth10.33%
EPS Growth137.93%
CountryUS
Employees6,800
SectorFinancial
Sector Strength93
IndustryInsurance
Share Statistics
EPS (TTM)2.60
Shares Outstanding27,810,678
10 Day Avg. Volume199,096
30 Day Avg. Volume175,407
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)N/A
Price to Sales (P/S)0.79
Price to Cash Flow (P/CF)7.20
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$75.00Price Target Upside6.04% Upside
Rating ConsensusHold
Number of Analyst Covering1
Stewart Information Services Business Overview & Revenue Model
Company DescriptionStewart Information Services Corporation (STC) is a global real estate services company specializing in providing title insurance and settlement-related services to the real estate and mortgage industries. The company operates through a network of policy-issuing offices, agencies, and subsidiaries, offering products and services that facilitate successful real estate transactions. Stewart's core services include title insurance, escrow and closing services, and various ancillary services that support the real estate transaction process.
How the Company Makes MoneyStewart Information Services Corporation primarily generates revenue through the issuance of title insurance policies, which protect property buyers and mortgage lenders against potential defects in property titles. The company earns premiums on these policies, which form a significant portion of its revenue. Additionally, Stewart generates income from escrow and closing services, where it charges fees for managing the funds and documentation required for real estate transactions. The company also offers ancillary services, such as property information services, valuations, and underwriting, which contribute to its earnings. Strategic partnerships with real estate agencies, mortgage lenders, and financial institutions further bolster its revenue by expanding its market reach and customer base.
Stewart Information Services Financial Statement Overview
Summary
Stewart Information Services presents a stable financial profile with strong cash flow management and a solid equity position. While profitability metrics show some volatility, the company maintains a strong operational base. Leverage concerns are present but are offset by a robust equity foundation. Continued focus on revenue growth and profitability improvement will be key to enhancing financial performance.Income Statement
STC shows a mixed income statement performance with fluctuating revenues. The Gross Profit Margin appears strong, indicating effective cost control. However, the Net Profit Margin and EBIT Margin have exhibited volatility, suggesting variable operational efficiency. The revenue growth has been inconsistent, indicating challenges in sustaining growth momentum.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a favorable Equity Ratio, highlighting financial stability. However, the Debt-to-Equity Ratio is relatively high, pointing to potential leverage risks. The Return on Equity is modest, indicating stable but not exceptional profitability.70
Positive
Cash Flow
Cash flow management is a strength for STC, with consistent Free Cash Flow and positive Operating Cash Flow to Net Income Ratio. The Free Cash Flow Growth Rate is positive, suggesting good cash generation capabilities, although fluctuations in capital expenditures indicate variable investment strategies.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.49B | 2.26B | 3.07B | 3.31B | 2.29B | Gross Profit |
| 2.42B | 1.97B | 2.42B | 2.68B | 1.91B | EBIT |
| 47.16M | 0.00 | 231.57M | 417.20M | 203.74M | EBITDA |
| 108.77M | 143.04M | 308.23M | 475.39M | 240.34M | Net Income Common Stockholders |
| 73.31M | 30.44M | 162.31M | 323.22M | 154.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.07M | 272.39M | 272.69M | 503.57M | 453.36M | Total Assets |
| 2.73B | 2.70B | 2.74B | 2.81B | 1.98B | Total Debt |
| 456.17M | 580.94M | 595.01M | 632.91M | 220.86M | Net Debt |
| 455.10M | 347.58M | 346.64M | 146.99M | -211.82M | Total Liabilities |
| 1.32B | 1.32B | 1.37B | 681.69M | 966.17M | Stockholders Equity |
| 1.40B | 1.37B | 1.36B | 1.28B | 1.01B |
| Cash Flow | Free Cash Flow | |||
| 95.14M | 45.25M | 143.91M | 350.49M | 260.81M | Operating Cash Flow |
| 135.61M | 83.04M | 191.86M | 390.29M | 275.81M | Investing Cash Flow |
| -87.26M | -29.97M | -300.67M | -645.28M | -231.37M | Financing Cash Flow |
| -60.96M | -69.10M | -123.22M | 310.37M | 54.30M |
Stewart Information Services Technical Analysis
Positive
70.73
Price Trends
66.79
Positive
69.12
Negative
68.23
Positive
Market Momentum
1.01
Negative
52.23
Neutral
53.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STC, the sentiment is Positive. The current price of 70.73 is above the 20-day moving average (MA) of 68.54, above the 50-day MA of 66.79, and above the 200-day MA of 68.23, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STC.
Stewart Information Services Risk Analysis
Stewart Information Services disclosed 20 risk factors in its most recent earnings report. Stewart Information Services 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
Stewart Information Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.65B | 8.17 | 13.07% | 3.09% | 3.79% | 3.86% | |
72 Outperform | $1.91B | 26.41 | 5.23% | 2.77% | 10.33% | 137.93% | |
68 Neutral | $17.25B | 13.49 | 0.00% | 2.99% | 16.32% | 144.11% | |
68 Neutral | $6.53B | 50.53 | 2.69% | 3.37% | -2.03% | -39.52% | |
68 Neutral | $437.09M | 14.12 | 10.52% | 0.78% | 2.03% | 22.67% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
61 Neutral | $772.47M | 14.39 | 6.62% | 17.39% | 52.96% | ― |
* Financial Sector Average
Performance Comparison
STC
Stewart Information Services
70.73
10.49
17.41%
FNF
Fidelity National Financial
63.51
13.88
27.97%
FAF
First American Financial
64.50
9.71
17.72%
ITIC
Investors Title Company
234.09
85.21
57.23%
RDN
Radian Group
31.76
3.00
10.43%
ORC
Orchid Island Capital
8.37
1.19
16.57%
Stewart Information Services Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 7.66% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in revenue and earnings growth, particularly in the Commercial and Real Estate Solutions segments. While the company has made significant progress, challenges persist in the housing market with low sales and high mortgage rates. The outlook for the housing market remains uncertain, though there is optimism for gradual improvement. Overall, the highlights outweigh the lowlights, suggesting resilience and strategic progress.Highlights
Strong Revenue and Earnings Growth
In 2024, Stewart grew revenues by 10% and adjusted net earnings by 42%, despite a challenging housing market environment.
Significant Growth in Commercial and Real Estate Solutions
Domestic Commercial revenues grew by 38% for the year, and the Real Estate Solutions segment saw a 36% increase in revenue compared to the prior year.
Improved Performance in Title and Commercial Segments
Title segment pretax income increased by 65%, and Domestic Commercial operations improved revenues by 50% year-over-year.
Recognition and Talent Acquisition
U.S. News & World Report recognized Stewart as one of the best companies to work for in 2024 and 2025, reflecting successful talent acquisition and leadership development.
Community Contributions
In 2024, Stewart donated over $1 million to the Stewart Title Foundation, supporting 100 scholarship recipients and over 900 organizations.
Lowlights
Challenging Housing Market
The housing market experienced multi-decade lows, with existing home sales down and mortgage rates around 7%.
Real Estate Solutions Segment Margin Pressure
Pretax income in the Real Estate Solutions segment declined due to vendor price increases and elevated employee costs.
Mixed Market Conditions and Uncertainty
The market remains uncertain with choppy conditions expected in the first half of 2025, and a slow return to normal levels anticipated.
Company Guidance
During the Stewart Information Services Fourth Quarter and Full Year 2024 Earnings Call, CEO Fred Eppinger highlighted the company's significant achievements despite challenges in the housing market. Stewart reported a 10% increase in revenues and a 42% rise in adjusted net earnings for 2024. In the Commercial segment, Domestic Commercial revenues grew by 38%, with a notable 50% increase in the second half of the year, driven by energy and infrastructure projects. The Real Estate Solutions segment saw a 36% revenue increase compared to the previous year. The company's Title segment also performed well, with a 12% rise in operating revenues, leading to a 65% increase in pretax income. Stewart's commitment to growth and resilience was further evidenced by a $2 per share cash dividend and over $1 million in donations through the Stewart Title Foundation. Despite ongoing market challenges, the company remains optimistic about future growth and market normalization by the second half of 2025.Stewart Information Services Corporate Events
Dividends
Stewart Information Services Declares Q1 2025 Dividend
Positive
Mar 3, 2025
On March 3, 2025, Stewart Information Services Corporation announced that its Board of Directors declared a cash dividend of $0.50 per share for the first quarter of 2025. This dividend is payable on March 31, 2025, to stockholders of record as of March 17, 2025, reflecting the company’s ongoing commitment to providing value to its shareholders.
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.