Stewart Information Services Corp. (STC)
NYSE:STC
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Stewart Information Services
(NYSE:STC)
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Rating:69Neutral
Price Target:
$66.00
▲(2.36% 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
Strong Cash Generation
Stewart converted operating performance into materially stronger cash flow in 2025 (OCF and FCF ~ $206M). Durable cash conversion improves financial flexibility for dividends, buybacks, M&A or reserve builds and reduces reliance on external funding across typical real-estate cycles.
Negative Factors
Prolonged Housing Volume Weakness
A multi-year slump in existing-home sales constrains title policy issuance and settlement activity. Because much of Stewart’s revenue is transaction-tied and it runs a large fixed-cost footprint, prolonged low volumes depress utilization, margins and the pace at which operating leverage can restore profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Stewart converted operating performance into materially stronger cash flow in 2025 (OCF and FCF ~ $206M). Durable cash conversion improves financial flexibility for dividends, buybacks, M&A or reserve builds and reduces reliance on external funding across typical real-estate cycles.
Read all positive factors
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)17.7
Beta (1Y)0.77
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-162.60
Enterprise Value/Revenue-109.16
Enterprise Value/Gross Profit-124.43
Enterprise Value/Ebitda-1.32K
Forecast
1Y Price Target
$81.33Price Target Upside26.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)5.86
Revenue Forecast (FY)$3.32B
Stewart Information Services Business Overview & Revenue Model
Company Description
Stewart 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 invo...
How the Company Makes Money
Stewart primarily makes money from (1) underwriting and issuing title insurance policies and (2) providing transaction-based settlement and closing services tied to real estate purchases and mortgage originations/refinancings. Title insurance reve...
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
64
Positive
Balance Sheet
67
Positive
Cash Flow
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
Neutral
64.48
Price Trends
65.48
Negative
68.15
Negative
67.90
Negative
Market Momentum
-1.36
Negative
48.27
Neutral
75.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STC, the sentiment is Neutral. The current price of 64.48 is above the 20-day moving average (MA) of 61.34, below the 50-day MA of 65.48, and below the 200-day MA of 67.90, indicating a neutral trend. The MACD of -1.36 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STC.
Stewart Information Services Risk Analysis
Stewart Information Services disclosed 25 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.01B | 5.59 | 38.04% | 0.82% | 8.71% | 17.26% | |
77 Outperform | $2.01B | 12.16 | 18.27% | ― | 22.51% | 2.19% | |
76 Outperform | $1.09B | 11.55 | 11.29% | 4.59% | 13.35% | 16.56% | |
69 Neutral | $1.96B | 17.66 | 7.77% | 2.88% | 16.22% | 69.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $722.07M | 27.78 | 10.96% | ― | 38.50% | ― | |
56 Neutral | $1.85B | -74.49 | 9.03% | 3.15% | 4.51% | -8.29% |
* Financial Sector Average
STC
Stewart Information Services
64.48
-0.23
-0.36%
SAFT
Safety Insurance Group
74.67
2.29
3.16%
KMPR
Kemper
31.45
-26.99
-46.19%
HCI
HCI Group
154.36
15.77
11.38%
ROOT
Root
46.44
-82.42
-63.96%
SKWD
Skyward Specialty Insurance Group, Inc.
45.19
-6.56
-12.68%
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 rec...
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.