STEWART INFORMATION SERVICES (STC) Stock Fundamental Analysis
NYSE:STC - New York Stock Exchange, Inc. - US8603721015 - Common Stock - Currency: USD
Overall STC gets a fundamental rating of 4 out of 10. We evaluated STC against 143 industry peers in the Insurance industry. STC has a bad profitability rating. Also its financial health evaluation is rather negative. STC is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year STC was profitable.
In the past year STC had a positive cash flow from operations.
In the past 5 years STC has always been profitable.
In the past 5 years STC always reported a positive cash flow from operatings.
1.2 Ratios
STC's Return On Assets of 2.69% is fine compared to the rest of the industry. STC outperforms 60.84% of its industry peers.
STC's Return On Equity of 5.23% is on the low side compared to the rest of the industry. STC is outperformed by 76.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.86%, STC is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
STC had an Average Return On Invested Capital over the past 3 years of 4.80%. This is in line with the industry average of 4.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.23% | ||
| ROIC | 3.86% |
ROA(3y)3.25%
ROA(5y)5.81%
ROE(3y)6.45%
ROE(5y)12%
ROIC(3y)4.8%
ROIC(5y)7.75%
1.3 Margins
STC has a Profit Margin of 2.94%. This is in the lower half of the industry: STC underperforms 76.22% of its industry peers.
In the last couple of years the Profit Margin of STC has declined.
STC's Operating Margin of 4.88% is on the low side compared to the rest of the industry. STC is outperformed by 74.83% of its industry peers.
In the last couple of years the Operating Margin of STC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.88% | ||
| PM (TTM) | 2.94% | ||
| GM | N/A |
OM growth 3Y-28.36%
OM growth 5Y-4.83%
PM growth 3Y-32.98%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
STC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STC has more shares outstanding
STC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of STC is 4.69, which is a neutral value as it means it would take STC, 4.69 years of fcf income to pay off all of its debts.
STC's Debt to FCF ratio of 4.69 is on the low side compared to the rest of the industry. STC is outperformed by 66.43% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that STC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, STC is in line with its industry, outperforming 52.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC7.78%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.71% over the past year.
The Earnings Per Share has been growing by 8.13% on average over the past years. This is quite good.
The Revenue has grown by 10.33% in the past year. This is quite good.
The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)48.71%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.06%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%10.4%
3.2 Future
STC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.88% yearly.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y42.66%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
EPS Next 5YN/A
Revenue Next Year11.38%
Revenue Next 2Y11.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STC is valuated rather expensively with a Price/Earnings ratio of 18.75.
STC's Price/Earnings ratio is a bit more expensive when compared to the industry. STC is more expensive than 66.43% of the companies in the same industry.
STC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
STC is valuated reasonably with a Price/Forward Earnings ratio of 9.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STC indicates a somewhat cheap valuation: STC is cheaper than 62.24% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. STC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
STC's Enterprise Value to EBITDA ratio is in line with the industry average.
61.54% of the companies in the same industry are cheaper than STC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
STC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STC's earnings are expected to grow with 30.88% in the coming years.
PEG (NY)0.44
PEG (5Y)2.31
EPS Next 2Y40.36%
EPS Next 3Y30.88%
5. Dividend
5.1 Amount
STC has a Yearly Dividend Yield of 3.00%.
STC's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.51, STC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
On average, the dividend of STC grows each year by 10.37%, which is quite nice.
STC has paid a dividend for at least 10 years, which is a reliable track record.
STC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.37%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
STC pays out 73.55% of its income as dividend. This is not a sustainable payout ratio.
The dividend of STC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.55%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
64.69
-0.82 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.25%
Inst Owner Change0.07%
Ins Owners1.59%
Ins Owner Change1.46%
Market Cap1.81B
Analysts77.14
Price Target80.58 (24.56%)
Short Float %3.5%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend1.96
Dividend Growth(5Y)10.37%
DP73.55%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.53%
Min EPS beat(2)11.39%
Max EPS beat(2)19.67%
EPS beat(4)3
Avg EPS beat(4)60.07%
Min EPS beat(4)-20.27%
Max EPS beat(4)229.47%
EPS beat(8)5
Avg EPS beat(8)25.94%
EPS beat(12)7
Avg EPS beat(12)19.29%
EPS beat(16)11
Avg EPS beat(16)28.75%
Revenue beat(2)2
Avg Revenue beat(2)2.51%
Min Revenue beat(2)2.12%
Max Revenue beat(2)2.89%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)2.89%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)12
Avg Revenue beat(16)7.02%
PT rev (1m)0%
PT rev (3m)-4.82%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-49.5%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-16.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.73 | ||
| P/FCF | 19.06 | ||
| P/OCF | 13.37 | ||
| P/B | 1.29 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)3.45
EY5.33%
EPS(NY)6.64
Fwd EY10.26%
FCF(TTM)3.39
FCFY5.25%
OCF(TTM)4.84
OCFY7.48%
SpS88.87
BVpS50.02
TBVpS5.17
PEG (NY)0.44
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 5.23% | ||
| ROCE | 5.07% | ||
| ROIC | 3.86% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 12.89% | ||
| OM | 4.88% | ||
| PM (TTM) | 2.94% | ||
| GM | N/A | ||
| FCFM | 3.82% |
ROA(3y)3.25%
ROA(5y)5.81%
ROE(3y)6.45%
ROE(5y)12%
ROIC(3y)4.8%
ROIC(5y)7.75%
ROICexc(3y)5.33%
ROICexc(5y)9.53%
ROICexgc(3y)15.9%
ROICexgc(5y)26.2%
ROCE(3y)6.32%
ROCE(5y)10.19%
ROICexcg growth 3Y-38.74%
ROICexcg growth 5Y-1.59%
ROICexc growth 3Y-37.84%
ROICexc growth 5Y-14.03%
OM growth 3Y-28.36%
OM growth 5Y-4.83%
PM growth 3Y-32.98%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 65.68% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 6.96 | ||
| Cash Conversion | 74.02% | ||
| Profit Quality | 129.78% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.78%
ROIC/WACC0.5
Cap/Depr(3y)70.02%
Cap/Depr(5y)79.51%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)122.37%
Profit Quality(5y)128.78%
High Growth Momentum
Growth
EPS 1Y (TTM)48.71%
EPS 3Y-32.99%
EPS 5Y8.13%
EPS Q2Q%47.06%
EPS Next Y42.66%
EPS Next 2Y40.36%
EPS Next 3Y30.88%
EPS Next 5YN/A
Revenue 1Y (TTM)10.33%
Revenue growth 3Y-9.01%
Revenue growth 5Y5.12%
Sales Q2Q%10.4%
Revenue Next Year11.38%
Revenue Next 2Y11.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y50.86%
EBIT growth 3Y-34.82%
EBIT growth 5Y0.05%
EBIT Next Year79.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y110.25%
FCF growth 3Y-35.25%
FCF growth 5Y-8.62%
OCF growth 1Y63.3%
OCF growth 3Y-29.7%
OCF growth 5Y-4.01%