Stewart Information Services (STC) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: 2.86%
• Average Volume (3M): 146.97K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.73
• Revenue Growth: 16.22%
• EPS Growth: 69.80%
• Country: US
• Employees: 6,800
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.64
• Shares Outstanding: 29,924,204
• 10 Day Avg. Volume: 134,661
• 30 Day Avg. Volume: 146,971
• PEG Ratio: 0.18
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 19.60
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 11.44
• 1Y Price Target: $81.50
• Price Target Upside: 13.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $81.00 ▲(13.07% Upside)

Stewart Information Services has a strong financial foundation with impressive revenue growth and strategic expansion initiatives. The earnings call and recent corporate events further highlight the company's resilience and strategic progress. While technical indicators show a neutral trend, the company's fair valuation and attractive dividend yield provide a solid investment case.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective strategic initiatives and market expansion, enhancing long-term business prospects.

Strategic Acquisitions

The acquisition expands Stewart's service offerings, strengthening its market position and supporting future revenue streams.

Cash Generation

Strong cash generation supports operational flexibility and investment in growth opportunities, ensuring financial stability.

Negative Factors

Residential Real Estate Challenges

Prolonged weakness in the residential market could limit growth in core business areas, impacting revenue and profitability.

Market Volatility

High competition and market volatility can disrupt strategic initiatives, affecting long-term growth and market share.

Net Profit Margin

Low net profit margin suggests inefficiencies that could hinder profitability and limit reinvestment in business growth.

Stewart Information Services Business Overview & Revenue Model

Company Description

Stewart Information Services Corporation (STC) is a leading provider of real estate services, specializing in title insurance and related solutions. Founded in 1893 and headquartered in Houston, Texas, Stewart operates through various segments, including title insurance, real estate services, and technology solutions. The company serves a wide array of clients, including real estate professionals, lenders, and consumers, offering products such as title insurance policies, closing services, and property information services.

How the Company Makes Money

Stewart 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 Financial Statement Overview

Summary

Stewart Information Services exhibits a robust financial position with strong revenue growth and excellent gross profit margins. The balance sheet is stable with moderate leverage and improving return on equity. Cash flow generation is impressive, although there is some volatility in operating cash flow. The company is well-positioned for future growth, but there is room for improvement in net profitability and operational efficiency.

Income Statement

Stewart Information Services has demonstrated a solid revenue growth rate of 4.71% in the TTM, recovering from previous declines. The gross profit margin is exceptionally high at 97.62%, indicating strong cost management. However, the net profit margin is relatively low at 3.29%, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are stable, reflecting consistent earnings before interest and taxes.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.40, indicating a balanced approach to leveraging. Return on equity is improving, currently at 6.22%, which is a positive sign of profitability. The equity ratio stands at 51.68%, showcasing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Stewart Information Services has shown a significant free cash flow growth rate of 4% in the TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is exceptionally high at 404.21, highlighting efficient cash utilization. However, the operating cash flow to net income ratio is low, suggesting potential volatility in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.49B	2.26B	3.07B	3.31B	2.29B
Gross Profit	2.59B	2.41B	2.18B	2.97B	3.18B	2.17B
EBITDA	212.30M	195.84M	143.04M	308.23M	475.39M	240.34M
Net Income	87.84M	73.31M	30.44M	162.31M	323.22M	154.91M
Balance Sheet
Total Assets	2.78B	2.73B	2.70B	2.74B	2.81B	1.98B
Cash, Cash Equivalents and Short-Term Investments	223.83M	257.50M	272.39M	272.69M	503.57M	453.36M
Total Debt	575.79M	564.68M	580.94M	595.01M	632.91M	220.86M
Total Liabilities	1.33B	1.32B	1.32B	1.37B	1.52B	966.17M
Stockholders Equity	1.44B	1.40B	1.37B	1.36B	1.28B	1.01B
Cash Flow
Free Cash Flow	67.74B	95.14M	45.25M	143.91M	350.49M	260.81M
Operating Cash Flow	167.57M	135.61M	83.04M	191.86M	390.29M	275.81M
Investing Cash Flow	-60.49M	-87.26M	-29.97M	-300.67M	-645.28M	-231.37M
Financing Cash Flow	-62.91M	-60.96M	-69.10M	-123.22M	310.37M	54.30M

Stewart Information Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.64
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 71.64 is below the 20-day moving average (MA) of 74.22, below the 50-day MA of 71.96, and above the 200-day MA of 67.55, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 33.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STC.

Stewart Information Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKWD	79 Outperform	$2.07B	15.13	16.06%	―	22.51%	2.19%
SAFT	75 Outperform	$1.17B	13.31	9.97%	4.65%	13.35%	16.56%
STC	74 Outperform	$2.14B	19.94	7.08%	2.86%	16.22%	69.80%
HCI	73 Outperform	$2.46B	12.12	31.94%	0.84%	8.71%	17.26%
ROOT	70 Neutral	$1.15B	23.69	17.02%	―	38.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KMPR	52 Neutral	$2.39B	10.65	9.03%	3.14%	4.51%	-8.29%

Stewart Information Services Corporate Events

Stewart Information Services Completes Major Acquisition

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.

Stewart Information Services Declares Q4 2025 Dividend

On December 1, 2025, Stewart Information Services Corporation announced that its Board of Directors declared a cash dividend of $0.525 per share for the fourth quarter of 2025. This dividend is payable on December 30, 2025, to stockholders of record as of December 15, 2025.

Stewart Information Services Acquires Mortgage Contracting Services

On November 6, 2025, Stewart Information Services Corporation announced that its subsidiary, SISCO Holdings, entered into an agreement to acquire Mortgage Contracting Services (MCS) for $330 million in cash. This acquisition, expected to close by the end of the year, aims to enhance Stewart’s real estate services portfolio by adding property preservation services to support mortgage servicers and lenders. The transaction is anticipated to be immediately accretive and will be funded with Stewart’s available resources, with MCS continuing to operate as a standalone company.

Stewart Information Services Secures New Credit Agreement

On October 7, 2025, Stewart Information Services Corporation entered into a new senior unsecured credit agreement with PNC Bank, establishing a $300 million revolving credit facility maturing in October 2030. This agreement replaces the previous credit facility and includes an option to increase commitments by up to $125 million, supporting Stewart’s strategic growth initiatives and positioning it as a leading title services company.