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Stewart Information Services (STC)
:STC
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Stewart Information Services
(NYSE:STC)
Rating:66Neutral
Price Target:
$66.00
▲(7.37%Upside)
Stewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend Yield3.21%
Average Volume (3M)158.93K
Price to Earnings (P/E)23.6
Beta (1Y)0.76
Revenue Growth11.40%
EPS Growth73.12%
CountryUS
Employees6,800
SectorFinancial
Sector Strength82
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.25
Shares Outstanding27,919,415
10 Day Avg. Volume203,258
30 Day Avg. Volume158,927
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio0.03
Enterprise Value/Market Cap174.30
Enterprise Value/Revenue31.41
Enterprise Value/Gross Profit-0.68
Enterprise Value/Ebitda427.05
Forecast
1Y Price Target
$75.00Price Target Upside22.01% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 Corporation generates revenue through various channels primarily centered around its title insurance and real estate transaction services. The core revenue stream for STC is the underwriting and issuance of title insurance policies, which protect lenders and property buyers from financial losses related to title defects. Additional revenue is derived from escrow and settlement services, where Stewart acts as a neutral third party to manage the exchange of funds and documents between parties in a real estate transaction. The company also offers ancillary services, such as property information and appraisal services, which contribute to its income. Significant partnerships with real estate professionals and financial institutions enhance its market reach and service offerings, boosting its overall earnings.
Stewart Information Services Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -7.92%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
Stewart Information Services demonstrated considerable growth in several key areas, including their title and real estate solutions segments, as well as a strong performance in domestic commercial business. However, they also faced significant challenges, such as a difficult housing market, increased operating expenses, and regulatory fee cuts in Texas. Despite these challenges, the company maintains a positive outlook due to growth in strategic segments and recognition as a top workplace.Q1-2025 Updates
Positive Updates
Growth in Title and Real Estate Solutions Segments
The title segment grew by 11% and the real estate solutions segment by 17% in the first quarter of 2025.
Domestic Commercial Business Expansion
Domestic commercial business grew 39% in Q1 2025 compared to Q1 2024, with growth in asset classes such as retail, mixed-use, and energy.
Agency Services Growth
Gross agency revenue grew by 11% year-over-year and net revenue by 14%, driven by an increase in commercial transactions and expanding agent partnerships.
International Revenue Increase
Non-commercial international revenue grew by 16% compared to the previous year, with a focus on expanding in Canada.
Recognition as a Top Workplace
Stewart was awarded the Top Workplace Award by USA Today, highlighting the company's positive work environment.
Negative Updates
Challenging Housing Market Conditions
Existing home sales were down 3.6% from the previous year, with interest rates between 6.6% to 7%, contributing to a difficult housing market.
Increased Operating Expenses
Higher expenses in the real estate solutions segment due to increased costs of credit data and higher outside data and service fees in commercial operations.
Flat Residential Revenue
Residential revenue remained flat due to a 9% decrease in closed orders, primarily because of lower residential transactions.
Texas Department of Insurance Fee Cut
A surprising 10% fee cut by the Texas Department of Insurance, affecting about 15% of Stewart's total revenues.
Company Guidance
In the first quarter of 2025, Stewart Information Services reported a solid performance amidst a challenging housing market, marked by interest rates between 6.6% and 7% and declining existing home sales. The company's title segment grew by 11%, driven by a 39% increase in domestic commercial business, while its real estate solutions segment saw a 17% growth. Stewart's agency services expanded, with gross agency revenue increasing by 11% and net revenue by 14%. Despite market volatility, the company's first-quarter net income was $3 million, or $0.11 per diluted share, on total revenues of $612 million. Adjusted net income was $7 million, or $0.25 per diluted share. Stewart anticipates continued growth and improved market conditions in the second half of 2025, focusing on strategic growth initiatives and leveraging its strong leadership team to maintain its position as a top workplace.Stewart Information Services Financial Statement Overview
Summary
Stewart Information Services presents a stable financial profile with strong cash flow management and a solid equity position. While profitability metrics show some volatility, the company maintains a strong operational base. Leverage concerns are present but are offset by a robust equity foundation. Continued focus on revenue growth and profitability improvement will be key to enhancing financial performance.Income Statement
STC shows a mixed income statement performance with fluctuating revenues. The Gross Profit Margin appears strong, indicating effective cost control. However, the Net Profit Margin and EBIT Margin have exhibited volatility, suggesting variable operational efficiency. The revenue growth has been inconsistent, indicating challenges in sustaining growth momentum.65
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a favorable Equity Ratio, highlighting financial stability. However, the Debt-to-Equity Ratio is relatively high, pointing to potential leverage risks. The Return on Equity is modest, indicating stable but not exceptional profitability.70
Positive
Cash Flow
Cash flow management is a strength for STC, with consistent Free Cash Flow and positive Operating Cash Flow to Net Income Ratio. The Free Cash Flow Growth Rate is positive, suggesting good cash generation capabilities, although fluctuations in capital expenditures indicate variable investment strategies.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.49B | 2.26B | 3.07B | 3.31B | 2.29B | Gross Profit |
| 2.49B | 1.97B | 2.42B | 2.68B | 1.91B | EBIT |
| 134.22M | 0.00 | 231.57M | 417.20M | 203.74M | EBITDA |
| 195.84M | 143.04M | 308.23M | 475.39M | 240.34M | Net Income Common Stockholders |
| 73.31M | 30.44M | 162.31M | 323.22M | 154.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.07M | 272.39M | 272.69M | 503.57M | 453.36M | Total Assets |
| 2.73B | 2.70B | 2.74B | 2.81B | 1.98B | Total Debt |
| 564.68M | 580.94M | 595.01M | 632.91M | 220.86M | Net Debt |
| 348.38M | 347.58M | 346.64M | 146.99M | -211.82M | Total Liabilities |
| 1.32B | 1.32B | 1.37B | 681.69M | 966.17M | Stockholders Equity |
| 1.40B | 1.37B | 1.36B | 1.28B | 1.01B |
| Cash Flow | Free Cash Flow | |||
| 95.14M | 45.25M | 143.91M | 350.49M | 260.81M | Operating Cash Flow |
| 135.61M | 83.04M | 191.86M | 390.29M | 275.81M | Investing Cash Flow |
| -87.26M | -29.97M | -300.67M | -645.28M | -231.37M | Financing Cash Flow |
| -60.96M | -69.10M | -123.22M | 310.37M | 54.30M |
Stewart Information Services Technical Analysis
Negative
61.47
Price Trends
65.00
Negative
66.32
Negative
68.41
Negative
Market Momentum
-1.39
Negative
43.58
Neutral
60.71
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 61.47 is below the 20-day moving average (MA) of 62.52, below the 50-day MA of 65.00, and below the 200-day MA of 68.41, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 60.71 is Neutral, 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 2 New Risks
1.
Stewart's risk management program may not effectively assess, identify, and manage risks, which could negatively impact our business, financial condition and results of operations. Q4, 2024
2.
It may become difficult to acquire necessary data used in our business, or we may experience increased costs related to acquiring and utilizing such data. Q4, 2024
Stewart Information Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $722.55M | 11.18 | 8.51% | 2.25% | 14.60% | ― | |
78 Outperform | $772.85M | 12.02 | 16.95% | 2.33% | 7.24% | -9.28% | |
78 Outperform | $1.94B | 16.28 | 28.75% | 0.95% | 20.89% | 3.25% | |
69 Neutral | $1.19B | 16.37 | 8.75% | 4.50% | 19.05% | 40.69% | |
66 Neutral | $1.72B | 23.65 | 5.31% | 3.21% | 11.40% | 73.12% | |
64 Neutral | $12.87B | 9.81 | 7.76% | 16985.65% | 12.28% | -7.83% | |
61 Neutral | $528.02M | 7.21 | 31.11% | ― | 12.19% | 5.12% |
* Financial Sector Average
Performance Comparison
STC
Stewart Information Services
61.47
2.48
4.20%
SAFT
Safety Insurance Group
79.32
6.18
8.45%
UFCS
United Fire Group
28.39
7.19
33.92%
UVE
Universal Insurance Holdings
27.46
9.11
49.65%
ACIC
American Coastal Insurance
10.92
0.34
3.21%
HCI
HCI Group
161.48
66.08
69.27%
Stewart Information Services Corporate Events
Dividends
Stewart Information Services Declares Q2 2025 Cash Dividend
Positive
Jun 2, 2025
On June 2, 2025, Stewart Information Services Corporation announced that its Board of Directors declared a cash dividend of $0.50 per share for the second quarter of 2025. The dividend is payable on June 30, 2025, to stockholders of record as of June 16, 2025, reflecting the company’s commitment to returning value to its shareholders.
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.
Executive/Board ChangesShareholder Meetings
Stewart Information Services Holds 2025 Annual Meeting
Neutral
May 8, 2025
On May 7, 2025, Stewart Information Services Corporation held its 2025 Annual Meeting of Stockholders, where three key proposals were addressed. The stockholders elected ten directors to serve until the 2026 Annual Meeting, approved the executive compensation on a non-binding advisory basis, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.