Stewart Information Services Corporation
Stewart Information Services Corporation Fundamental Analysis
Stewart Information Services Corporation (STC) shows moderate financial fundamentals with a PE ratio of 17.15, profit margin of 3.96%, and ROE of 7.77%. The company generates $3.0B in annual revenue with strong year-over-year growth of 10.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STC's fundamental strength across five key dimensions:
Efficiency Score
WeakSTC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTC trades at attractive valuation levels.
Growth Score
ModerateSTC shows steady but slowing expansion.
Financial Health Score
ModerateSTC shows balanced financial health with some risks.
Profitability Score
WeakSTC struggles to sustain strong margins.
Key Financial Metrics
Is STC Expensive or Cheap?
P/E Ratio
STC trades at 17.15 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STC's PEG of 1.46 indicates fair valuation.
Price to Book
The market values Stewart Information Services Corporation at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1337.55 times EBITDA. This signals the market has high growth expectations.
How Well Does STC Make Money?
Net Profit Margin
For every $100 in sales, Stewart Information Services Corporation keeps $3.96 as profit after all expenses.
Operating Margin
Core operations generate 5.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.77 in profit for every $100 of shareholder equity.
ROA
Stewart Information Services Corporation generates $3.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stewart Information Services Corporation generates limited operating cash flow of $119.68M, signaling weaker underlying cash strength.
Free Cash Flow
Stewart Information Services Corporation generates weak or negative free cash flow of $72.11M, restricting financial flexibility.
FCF Per Share
Each share generates $2.41 in free cash annually.
FCF Yield
STC converts 3.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How STC Stacks Against Its Sector Peers
| Metric | STC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.15 | 18.86 | Neutral |
| ROE | 7.77% | 847.00% | Weak |
| Net Margin | 3.96% | 4202.00% | Weak |
| Debt/Equity | 0.54 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 3.55% | -21543.00% (disorted) | Weak |
STC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stewart Information Services Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.71%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-20.31%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-30.34%
Industry Style: Value, Dividend, Cyclical
Declining