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Stewart Information Services Corp. (STC)
NYSE:STC
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Stewart Information Services
(NYSE:STC)
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Rating:77Outperform
Price Target:
$83.00
▲(12.53% Upside)
Stewart Information Services scores well overall, driven by strong financial performance and positive earnings call highlights. The technical analysis supports a bullish outlook, and the recent dividend increase adds to shareholder value. While the valuation is fair, the company's strategic initiatives and robust growth in key segments position it well for future success.
Stewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield2.75%
Average Volume (3M)150.08K
Price to Earnings (P/E)23.8
Beta (1Y)0.74
Revenue Growth14.00%
EPS Growth100.44%
CountryUS
Employees6,800
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.34
Shares Outstanding27,998,524
10 Day Avg. Volume172,537
30 Day Avg. Volume150,078
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit0.93
Enterprise Value/Ebitda11.71
Forecast
1Y Price Target
$78.00Price Target Upside5.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Stewart Information Services Business Overview & Revenue Model
Company DescriptionStewart Information Services Corporation (STC) is a leading provider of title insurance and related services in the real estate industry. Founded in 1893, the company operates across various segments, including title insurance, underwriting, and real estate services. Stewart offers a comprehensive suite of products designed to facilitate real estate transactions, ensure property ownership, and manage risks associated with real estate investments.
How the Company Makes MoneyStewart generates revenue primarily through the sale of title insurance policies, which protect against financial loss due to defects in property titles. The company earns fees from underwriting services, conducting title searches, and providing escrow services during real estate transactions. Additional revenue streams include ancillary services such as closing services, property surveys, and appraisal services. Stewart has established partnerships with real estate agents, mortgage lenders, and financial institutions, enhancing its market reach and contributing to its earnings. Moreover, the company's investment in technology and digital solutions improves operational efficiency, further supporting revenue growth.
Stewart Information Services Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
Despite challenging market conditions, Stewart Information Services demonstrated strong performance with significant revenue and profit growth, driven by commercial business expansion and strategic acquisitions. However, market uncertainties and slight declines in residential metrics posed challenges.Q2-2025 Updates
Positive Updates
Significant Revenue and EPS Growth
Stewart Information Services achieved a 20% increase in revenue and a 48% increase in adjusted EPS compared to the second quarter of 2024.
Commercial Business Expansion
The domestic commercial business grew by 46% relative to the second quarter of the previous year, with a year-to-date growth of 43% compared to the first half of 2024.
Agency Services Performance
The agency services business grew by 25% compared to the second quarter of 2024, indicating continued share gains in agency residential and commercial markets.
Real Estate Solutions Segment Growth
The real estate solutions business grew by 22% compared to the second quarter of last year, primarily due to higher revenues from the credit information evaluation services business.
Strategic Acquisition
PropStream acquired BatchLeads and BatchDialer, enhancing the real estate solutions segment with advanced AI-driven tools and contact dialer capabilities.
Negative Updates
Challenging Housing Market Conditions
The housing market remained flat with existing home sales down roughly 1% compared to the second quarter of 2024, and market uncertainty and affordability challenges persisting.
Slight Decline in Residential Fee Per File
Domestic residential fee per file slightly declined to $2,900 compared to $3,000 last year, primarily due to a higher mix of refinancing and real estate investor orders.
Title Loss Ratio
Total title loss expense increased slightly to $22 million due to increased title revenues, although the title loss ratio improved to 3.6% compared to 4.2% last year.
Company Guidance
During the Stewart Information Services Second Quarter 2025 Earnings Call, the company reported robust financial results despite a challenging housing market. Revenue grew by 20%, and adjusted EPS rose by 48% compared to the second quarter of 2024. The direct operations segment saw a 6% growth, while the small commercial segment within direct operations experienced a significant 36% increase. The national commercial services business also performed well, with domestic commercial revenue increasing by 46% year-over-year and 43% year-to-date. The agency services business recorded a 25% growth, and the real estate solutions segment saw a 22% rise in revenue. Stewart's net income for the quarter was $32 million, translating to $1.13 per diluted share, based on revenues of $722 million. On an adjusted basis, net income was $38 million, or $1.34 per diluted share, compared to $25 million or $0.91 per diluted share the previous year. The Title segment's operating revenues improved by 19%, contributing to a pretax income growth of 48%. The company remains focused on strategic growth initiatives, expanding its commercial services and agency services, particularly in 15 key states, and enhancing its real estate solutions 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.75
Positive
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.70
Positive
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.80
Positive
| 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 | 2.60B | 2.41B | 2.18B | 2.97B | 3.18B | 1.91B |
| EBITDA | 207.34M | 195.84M | 143.04M | 308.23M | 475.39M | 221.13M |
| 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 | 23.50M | 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
Positive
73.76
Price Trends
69.45
Positive
65.86
Positive
66.28
Positive
Market Momentum
1.28
Positive
54.63
Neutral
38.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STC, the sentiment is Positive. The current price of 73.76 is above the 20-day moving average (MA) of 73.48, above the 50-day MA of 69.45, and above the 200-day MA of 66.28, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 38.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 1.07B | 12.61 | 8.54% | 5.08% | 18.52% | 65.66% | |
79 Outperform | 788.72M | 8.80 | 7.93% | 2.10% | 14.28% | 148.61% | |
77 Outperform | $2.08B | 23.84 | 6.27% | 2.75% | 14.00% | 100.44% | |
73 Outperform | 2.33B | 15.94 | 24.25% | 0.89% | 9.62% | -18.69% | |
72 Outperform | 713.91M | 11.04 | 15.79% | 3.02% | 5.64% | -17.95% | |
70 Outperform | 551.05M | 6.86 | 32.13% | ― | 23.68% | 16.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
STC
Stewart Information Services
73.76
1.53
2.12%
SAFT
Safety Insurance Group
71.19
-7.17
-9.15%
KMPR
Kemper
51.49
-8.12
-13.62%
HCI
HCI Group
180.43
74.04
69.59%
ROOT
Root
92.57
55.02
146.52%
SKWD
Skyward Specialty Insurance Group, Inc.
46.73
5.77
14.09%
Stewart Information Services Corporate Events
Dividends
Stewart Information Services Increases Annual Cash Dividend
Positive
Sep 2, 2025
On September 2, 2025, Stewart Information Services Corporation announced that its Board of Directors approved an increase in the annual cash dividend from $2.00 to $2.10 per share, starting with the third quarterly payment of 2025. The third quarter dividend of $0.525 per share will be payable on September 30, 2025, to shareholders of record on September 16, 2025. This move underscores Stewart’s commitment to delivering consistent returns to its shareholders, as stated by CEO Fred Eppinger.
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.