Education
About Us
Working with TipRanks
Follow Us
Stewart Information Services Corp. (STC)
NYSE:STC
Top Page
Stewart Information Services
(NYSE:STC)
Select Model
Select Model
Rating:69Neutral
Price Target:
$78.00
▲(23.28% Upside)
Action:ReiteratedDate:03/03/26
STC scores 69 mainly due to improving financial performance and stronger cash generation in 2025, supported by a constructive (but not strong) technical setup. The earnings call adds confidence through positive execution and measured 2026 guidance, while moderate valuation and a ~2.9% dividend provide additional support; cyclical housing exposure, margin volatility, and rising leverage remain the key constraints.
Positive Factors
Cash generation improvement
Stewart converted strong operating performance into durable cash flow in 2025, with free cash flow roughly equal to net income. Sustained cash conversion improves financial flexibility for dividends, acquisitions, and working-capital needs, lowering reliance on external financing across cycles.
Diversification via commercial growth and MCS
Adding MCS expands lender/default services and complements strong commercial momentum, which delivered outsized fee-per-file gains. This diversifies revenue away from purchase/refinance cycles, creating higher-margin, countercyclical streams and persistent cross-sell opportunities over the medium term.
Stronger liquidity and capital base
A larger credit facility, recent equity raise and substantial excess cash/investments materially increase the company's capacity to fund operations, absorb cyclical revenue dips, and execute targeted M&A. This bolsters long-term resilience and strategic optionality versus peers with weaker liquidity.
Negative Factors
Cyclical housing volume risk
Prolonged low existing-home sales structurally reduce title volumes and pressure pricing leverage across Stewart's core business. Given fixed-cost intensity from a large branch network, sustained volume shortfalls will constrain margin expansion and earnings growth until housing activity meaningfully rebounds.
Rising leverage
Higher leverage reduces financial flexibility and raises interest and covenant sensitivity during downturns. Even with equity growth and cash buffers, increased debt elevates refinancing and liquidity risk if housing volumes or investment returns weaken, limiting the company's capacity for aggressive capital allocation.
Margin volatility & Real Estate Solutions shortfall
Segment margin shortfalls and historical swings show profitability is sensitive to pricing, expansion costs, and integration execution. If Real Estate Solutions fails to sustainably reach target margins, overall net margins (~4% in 2025) will remain thin and earnings will be more exposed to cyclical and competitive pressures.
Stewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.96B
Dividend Yield2.88%
Average Volume (3M)146.97K
Price to Earnings (P/E)14.1
Beta (1Y)0.76
Revenue Growth16.22%
EPS Growth69.80%
CountryUS
Employees6,800
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.65
Shares Outstanding30,419,415
10 Day Avg. Volume134,661
30 Day Avg. Volume146,971
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.24
Price to Sales (P/S)0.70
P/FCF Ratio15.42
Enterprise Value/Market Cap-162.32
Enterprise Value/Revenue-109.16
Enterprise Value/Gross Profit-124.43
Enterprise Value/Ebitda-1.32K
Forecast
1Y Price Target
$81.33Price Target Upside28.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.82
Revenue Forecast (FY)$3.32B
Stewart Information Services Business Overview & Revenue Model
Company DescriptionStewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services. The company operates in two segments, Title, and Ancillary Services and Corporate. The Title segment is involved in searching, examining, closing, and insuring the condition of the title to real property. This segment also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services. The Ancillary Services and Corporate segment provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services to the mortgage industry. The company offers its products and services through its directly owned policy-issuing offices, network of independent agencies, and other businesses within the company. It serves homebuyers and sellers, residential and commercial real estate professionals, title agencies, real estate attorneys and investors, and home builders, as well as mortgage lenders, servicers, brokers, and investors. The company operates in the United States, Canada, the United Kingdom, and Australia. Stewart Information Services Corporation was founded in 1893 and is headquartered in Houston, Texas.
How the Company Makes MoneyStewart Information Services generates revenue primarily through the sale of title insurance policies and related services. The company earns money by charging fees for title searches, title insurance premiums, and settlement services during real estate transactions. Key revenue streams include direct title insurance sales, fees from closing and escrow services, and commissions from agents and brokers. Additionally, Stewart leverages technology solutions to enhance operational efficiency and drive revenue growth. Partnerships with real estate agencies, lenders, and other industry stakeholders further contribute to its earnings by expanding its market reach and service offerings.
Stewart Information Services Key Performance Indicators (KPIs)
Stewart Information Services Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial progress narrative: significant revenue, profit and margin expansion in 2025 across title, agency and commercial businesses; strengthened balance sheet and strategic acquisition (MCS) to expand lender services; and multiple profitable growth initiatives (commercial expansion, agency commercial initiatives, and targeted M&A). Key challenges remain: a depressed existing-home-sales backdrop that pressures volumes and first-quarter seasonality, margin shortfalls in parts of Real Estate Solutions, and localized regulatory rate reductions (Texas) that pressure some agents. Management expects modest housing improvement in 2026 and sees continued upside from commercial momentum and acquired capabilities, while acknowledging risks to timing and pace of market recovery.Q4-2025 Updates
Positive Updates
Strong Full-Year Financial Performance
Full year 2025 revenue grew 18%, net income grew 48%, and adjusted EPS grew 46% year-over-year. Adjusted pretax margin expanded to 6.8% from 5.8% the prior year.
Robust Fourth Quarter Results
Q4 revenue increased 20% year-over-year to $791 million. Reported Q4 net income was $36 million ($1.25 diluted EPS); adjusted Q4 net income was $48 million ($1.65 diluted EPS), a 50% increase versus prior-year adjusted results.
Title Segment Margin and Revenue Improvement
Title operating revenues rose $106 million (19%) in Q4. Title adjusted pretax income improved 35% to $68 million from $51 million and adjusted pretax margin increased to 10% from ~9% year-over-year.
Commercial Business Outperformance
All domestic commercial revenues grew 34% for the year. National commercial services grew 43% year-over-year and delivered a 49% increase in Q4. Average domestic commercial fee per file increased ~39% to ~$27,000 in Q4.
Agency and Direct Operations Growth
Agency services revenue grew ~21% for the year and 20% in Q4, with notable strength in Florida, Texas and New York. Direct operations main street commercial grew 17% for the year; direct operations grew 8% in Q4 despite a challenged residential market.
Real Estate Solutions Revenue Expansion
Real Estate Solutions revenues rose 22% year-over-year (29% in Q4). Q4 adjusted pretax income for the segment improved 47% to $10 million from $6 million, with Q4 adjusted pretax margin of 8.5% and a plan to reach low‑teens margin in 2026.
Strategic Acquisition and Product Expansion
Closed acquisition of Mortgage Contracting Services (MCS) in December to expand default and lender services; MCS reported ~ $165 million annual revenue and roughly $40 million EBITDA, expected to broaden cross-sell opportunities.
Strengthened Financial Flexibility and Capital Position
Upsized credit facility by $100 million to $300 million and completed an equity offering of 2.2 million shares raising $140 million. Total cash and investments were approximately $480 million in excess of statutory reserves; stockholders' equity ~$1.6 billion and book value of $54 per share (+$4 YoY).
Operational Efficiency and Cash Generation
Net cash provided by operations improved $22 million (32%). Employee cost ratio improved to 29% from 31% driven by revenue growth; other operating expense ratio remained ~25%.
Claims and Loss Performance
Fourth-quarter title loss ratio improved to 3.4% from 3.7% year-over-year, reflecting favorable claims experience. Management expects 2026 title losses to average in the 3.5%–4% range.
Negative Updates
Persistently Weak Existing Home Sales
Company noted a multi-year slump in existing home sales with two consecutive years at the lowest levels in 30 years; existing home sales have been ~4 million units for three years and are not expected to return to the ~5 million long-term average in 2026, constraining volume and margins.
First-Quarter Seasonality and Fixed-Cost Leverage
Large fixed-cost base (~500 locations) creates meaningful seasonality and margin pressure in Q1 when volumes are low; management emphasized operating leverage that would materially improve only as existing-home-sales recover toward 5M.
Real Estate Solutions Margin Shortfall and Costs
Full-year Real Estate Solutions margin was 10.1%, below management's target due to isolated pricing issues and expansion costs. While Q4 margin improved, the segment must still normalize margins into the low‑teens in 2026.
Texas Title Rate Reduction Impact on Agents
Texas title premium rate reduction (~6%) is expected to have a low-single-digit negative impact on company earnings this year and may materially pressure small/rural agents' profitability, potentially causing agency disruption in some areas.
MCS and Foreclosure Exposure Seasonality
MCS contribution (~$165M revenue, ~$40M EBITDA) carries some seasonality (lower in Q1) and exposure to rising delinquencies/foreclosures, introducing near-term revenue volatility in lender/default services.
Potential Moderation in Commercial Growth Rates
Management cautioned that the very strong commercial growth in 2025 (e.g., 49% in Q4) could moderate in 2026 due to tougher comparisons despite continued healthy pipeline and market share opportunities.
Company Guidance
Guidance from the call was cautiously optimistic: management expects modest housing-market improvement in 2026 but does not expect existing home sales to return to the long‑term ~5.0M level this year; Q1 should be a bit better than last year but remain seasonal. They expect title losses to average about 3.5%–4.0% in 2026 (Q4 title loss ratio was 3.4%), Real Estate Solutions margins to normalize to the low‑teens (Q4 margin 8.5%), and lender‑services margins to be roughly in the 12%–13% range; commercial revenue growth should continue but may moderate from the exceptional 49% Q4 / 43% full‑year gains. Management reiterated balance‑sheet flexibility (credit facility upsized to $300M, ~$200M drawn currently, $140M raised via a 2.2M‑share offering, and ~ $480M cash/investments in excess of statutory reserves), said MCS adds roughly $165M of annual revenue (~$40M EBITDA) with some Q1 seasonality, and noted investment income could move by only a few million depending on timing of any rate cuts as higher escrow balances largely offset lower short‑term yields.Stewart Information Services Financial Statement Overview
Summary
Financials are improving but still cyclical. Revenue rebounded in 2025 and profitability improved versus 2023, while cash generation strengthened materially with free cash flow roughly matching net income. Offsetting this, margins have been volatile across the cycle and leverage has increased (debt-to-equity rising to ~0.54), keeping the score in the upper-middle range rather than higher.Income Statement
Revenue rebounded in 2025 to $2.92B (+4.5% YoY) after a sharp 2023 decline, showing improved top-line stability. Profitability is positive but relatively thin for 2025 (net margin ~4.0%), though it has improved meaningfully versus 2023 (~1.3%). Margins have been volatile over the cycle (notably stronger in 2020–2022 and especially 2021), which suggests earnings are sensitive to industry conditions and pricing/volume swings.64
Positive
Balance Sheet
Leverage is moderate with debt-to-equity at ~0.54 in 2025 (up from ~0.40 in 2024), indicating rising balance-sheet risk versus last year. Equity has grown to ~$1.64B alongside asset growth to ~$3.25B, supporting a solid capital base. Returns on equity improved to ~7.0% in 2025 from ~5.2% in 2024, but remain well below peak levels seen earlier in the period, highlighting that balance-sheet strength is good but profitability on that capital is not consistently high.67
Positive
Cash Flow
Cash generation strengthened in 2025 with operating cash flow of ~$206M and free cash flow also ~$206M, up sharply versus 2024 free cash flow (~$95M). Free cash flow is strong relative to earnings in 2025 (about 1.0x net income), indicating good cash conversion and financial flexibility. The main weakness is volatility across years (free cash flow fell in 2022 and 2023 before rebounding), suggesting cash generation can swing with operating conditions.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.92B | 2.49B | 2.26B | 3.07B | 3.31B |
| Gross Profit | 2.56B | 2.41B | 2.18B | 2.97B | 3.18B |
| EBITDA | 241.43M | 195.84M | 143.04M | 308.23M | 475.39M |
| Net Income | 115.56M | 73.31M | 30.44M | 162.31M | 323.22M |
Balance Sheet | |||||
| Total Assets | 3.25B | 2.73B | 2.70B | 2.74B | 2.81B |
| Cash, Cash Equivalents and Short-Term Investments | 369.67M | 257.50M | 272.39M | 272.69M | 503.57M |
| Total Debt | 890.91M | 564.68M | 580.94M | 595.01M | 632.91M |
| Total Liabilities | 1.60B | 1.32B | 1.32B | 1.37B | 1.52B |
| Stockholders Equity | 1.64B | 1.40B | 1.37B | 1.36B | 1.28B |
Cash Flow | |||||
| Free Cash Flow | 132.28M | 95.14M | 45.25M | 143.91M | 350.49M |
| Operating Cash Flow | 205.69M | 135.61M | 83.04M | 191.86M | 390.29M |
| Investing Cash Flow | -368.58M | -87.26M | -29.97M | -300.67M | -645.28M |
| Financing Cash Flow | 265.21M | -60.96M | -69.10M | -123.22M | 310.37M |
Stewart Information Services Technical Analysis
Negative
63.27
Price Trends
68.23
Negative
70.25
Negative
68.34
Negative
Market Momentum
-1.12
Positive
34.26
Neutral
10.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STC, the sentiment is Negative. The current price of 63.27 is below the 20-day moving average (MA) of 67.83, below the 50-day MA of 68.23, and below the 200-day MA of 68.34, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 10.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STC.
Stewart Information Services Risk Analysis
Stewart Information Services disclosed 22 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.17B | 5.59 | 38.04% | 0.82% | 8.71% | 17.26% | |
77 Outperform | $2.01B | 12.16 | 18.27% | ― | 22.51% | 2.19% | |
76 Outperform | $1.07B | 11.55 | 9.97% | 4.59% | 13.35% | 16.56% | |
69 Neutral | $1.96B | 14.05 | 7.08% | 2.88% | 16.22% | 69.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $680.40M | 27.78 | 14.21% | ― | 38.50% | ― | |
56 Neutral | $1.74B | -74.49 | 9.03% | 3.15% | 4.51% | -8.29% |
* Financial Sector Average
STC
Stewart Information Services
64.59
-4.96
-7.14%
SAFT
Safety Insurance Group
73.24
-1.27
-1.70%
KMPR
Kemper
29.72
-36.84
-55.35%
HCI
HCI Group
167.39
30.08
21.90%
ROOT
Root
43.76
-107.97
-71.16%
SKWD
Skyward Specialty Insurance Group, Inc.
45.17
-4.61
-9.26%
Stewart Information Services Corporate Events
Dividends
Stewart Information Services Declares First-Quarter 2026 Cash Dividend
Positive
Mar 2, 2026
On March 2, 2026, Stewart Information Services Corporation announced that its Board of Directors declared a cash dividend of $0.525 per share for the first quarter of 2026. The dividend will be paid on March 31, 2026, to common stockholders of record as of March 16, 2026, underscoring the company’s ongoing commitment to returning capital to shareholders through regular cash distributions.
The first-quarter dividend declaration signals continued confidence by Stewart’s board in the company’s financial position and cash-generation capabilities. For investors and income-focused stakeholders, the maintained payout level provides visibility into near-term returns and highlights the firm’s steady capital allocation approach within the competitive real estate services sector.
The most recent analyst rating on (STC) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Stewart Information Services stock, see the STC Stock Forecast page.
M&A TransactionsPrivate Placements and Financing
Stewart Information Services Completes Major Acquisition
Positive
Dec 12, 2025
On December 10, 2025, Stewart Information Services Corporation entered into an underwriting agreement with Goldman Sachs & Co. LLC to issue and sell 1,900,000 shares of common stock in a public offering, with an option for an additional 285,000 shares, which was fully exercised by December 11, 2025. Additionally, on the same day, Stewart’s subsidiary, SISCO Holdings, LLC, completed the acquisition of Mortgage Contracting Services for $330 million, enhancing its position in the property preservation services market.
The most recent analyst rating on (STC) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Stewart Information Services stock, see the STC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.