State Street Corporation
State Street Corporation Fundamental Analysis
State Street Corporation (STT) shows strong financial fundamentals with a PE ratio of 12.44, profit margin of 13.01%, and ROE of 10.76%. The company generates $22.2B in annual revenue with strong year-over-year growth of 19.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentSTT delivers strong and consistent growth momentum.
Financial Health Score
WeakSTT carries high financial risk with limited liquidity.
Profitability Score
WeakSTT struggles to sustain strong margins.
Key Financial Metrics
Is STT Expensive or Cheap?
P/E Ratio
STT trades at 12.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STT's PEG of -23.89 indicates potential undervaluation.
Price to Book
The market values State Street Corporation at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.47 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 $13.01 as profit after all expenses.
Operating Margin
Core operations generate 16.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.76 in profit for every $100 of shareholder equity.
ROA
State Street Corporation generates $0.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
State Street Corporation produces operating cash flow of $3.25B, showing steady but balanced cash generation.
Free Cash Flow
State Street Corporation generates strong free cash flow of $2.68B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.59 in free cash annually.
FCF Yield
STT converts 7.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-23.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How STT Stacks Against Its Sector Peers
| Metric | STT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.44 | 18.66 | Better (Cheaper) |
| ROE | 10.76% | 806.00% | Weak |
| Net Margin | 13.01% | -451.00% (disorted) | Strong |
| Debt/Equity | 1.07 | 1.00 | Neutral |
| Current Ratio | 0.20 | 662.02 | Weak Liquidity |
| ROA | 0.80% | -24409.00% (disorted) | 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
107.80%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
48.83%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-388.30%
Industry Style: Value, Dividend, Cyclical
Declining