State Street Corporation Fundamental Analysis (NYSE: STT)
State Street Corporation (NYSE: STT) shows moderate financial fundamentals with a PE ratio of 16.02, profit margin of 15.04%, and ROE of 12.40%. The company generates $22.8B in annual revenue with weak year-over-year growth of 2.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -18.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STT's fundamental strength across five key dimensions:
Efficiency Score
WeakSTT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTT trades at attractive valuation levels.
Growth Score
ModerateSTT shows steady but slowing expansion.
Financial Health Score
ModerateSTT shows balanced financial health with some risks.
Profitability Score
WeakSTT struggles to sustain strong margins.
Key Financial Metrics
Is STT Expensive or Cheap?
P/E Ratio
STT trades at 16.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, STT's PEG of 0.59 indicates potential undervaluation.
Price to Book
The market values State Street Corporation at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.05 times EBITDA. This is generally considered low.
How Well Does STT Make Money?
Net Profit Margin
For every $100 in sales, State Street Corporation keeps $15.04 as profit after all expenses.
Operating Margin
Core operations generate 19.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.40 in profit for every $100 of shareholder equity.
ROA
State Street Corporation generates $0.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
State Street Corporation generates limited operating cash flow of $-11.16B, signaling weaker underlying cash strength.
Free Cash Flow
State Street Corporation generates weak or negative free cash flow of $-11.78B, restricting financial flexibility.
FCF Per Share
Each share generates $-42.57 in free cash annually.
FCF Yield
STT converts -23.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How STT Stacks Against Its Sector Peers
| Metric | STT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.02 | 21.05 | Better (Cheaper) |
| ROE | 12.40% | 653.00% | Weak |
| Net Margin | 15.04% | -610.00% (disorted) | Strong |
| Debt/Equity | 1.08 | 0.88 | Weak (High Leverage) |
| Current Ratio | 1.92 | 891.58 | Neutral |
| ROA | 0.83% | 6602.00% | Weak |
STT outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews State Street Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
132.51%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
50.91%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
87.70%
Industry Style: Value, Dividend, Cyclical
High Growth