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Stewart Information Services (STC)
:STC
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Stewart Information Services
(NYSE:STC)
Rating:71Outperform
Price Target:
$72.00
▼(-0.18% Downside)
Stewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.96B
Dividend Yield2.77%
Average Volume (3M)217.04K
Price to Earnings (P/E)22.6
Beta (1Y)0.79
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. Volume185,921
30 Day Avg. Volume217,042
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit-0.02
Enterprise Value/Ebitda13.18
Forecast
1Y Price Target
$72.50Price Target Upside0.51% 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: 21.21%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
Stewart Information Services demonstrated strong financial performance despite a challenging real estate market. The company achieved significant revenue and EPS growth, with notable achievements in commercial services and agency services expansion. However, the flat housing market and high mortgage rates present ongoing challenges.Q2-2025 Updates
Positive Updates
Strong Revenue and EPS Growth
Stewart Information Services reported a 20% revenue increase and a 48% adjusted EPS growth compared to the second quarter of 2024.
National Commercial Services Growth
The domestic commercial business grew by 46% relative to the second quarter of last year, driven by penetration in geographic markets and various asset classes.
Agency Services Expansion
The agency services business reported a 25% growth compared to the second quarter of '24, demonstrating share gains in agency residential and commercial.
Real Estate Solutions Business Growth
The real estate solutions segment grew revenue by 22% when compared to the second quarter of last year, supported by higher revenues from credit information evaluation services.
PropStream Acquisition
The acquisition of BatchLeads and BatchDialer by PropStream will enhance its real estate data intelligence and lead targeting capabilities.
Negative Updates
Flat Housing Market
The housing market remains largely flat, with existing home sales down roughly 1% compared to the second quarter of 2024, and price appreciation cooling to 1.5% for the quarter.
High Mortgage Rates and Low Home Sales
The real estate market is challenged with mortgage rates in the high 6s and existing single-family home sales near 15-year lows.
Decline in Domestic Residential Fee Per File
Domestic residential fee per file slightly declined to $2,900 compared to $3,000 last year, mainly due to a higher mix of refinancing and real estate investor orders.
Company Guidance
During the Stewart Information Services Second Quarter 2025 Earnings Call, the company reported a range of metrics showcasing their financial performance and strategic growth initiatives. Revenue grew by 20% and adjusted EPS increased by 48% compared to the same quarter in 2024. In the direct operations, revenue grew by 6%, with small commercial operations alone seeing a 36% increase. The national commercial services business reported a 46% growth in domestic commercial business revenue compared to the previous year, and year-to-date domestic revenue grew by 43%. The agency services business grew by 25%, and the real estate solutions business witnessed a 22% increase in revenue, primarily driven by higher revenues from credit information evaluation services. The company also announced the acquisition of BatchLeads and BatchDialer by their PropStream platform, enhancing their real estate data intelligence capabilities. Despite market challenges, including high mortgage rates and existing home sales at a 15-year low, Stewart's title segment operating revenues improved by 19%, and adjusted pretax income for the segment was 35% better than the previous year. Total title loss expense for the quarter increased slightly, improving the title loss ratio to 3.6% from 4.2% last year. The company's financial position remains robust, with $390 million in cash and investments exceeding statutory reserve requirements, and a fully available $200 million line of credit.Stewart Information Services Financial Statement Overview
Summary
Stewart Information Services demonstrates a stable financial profile with strong cash flow management and a solid equity position. The income statement shows some profitability volatility, but effective cost control is evident through a strong Gross Profit Margin. The balance sheet reflects financial stability, although leverage risks exist. The company's cash flow management is a strength, showing consistent Free Cash Flow and positive cash generation capabilities.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 | 2.41B | 1.97B | 2.42B | 2.68B | 1.91B |
| EBITDA | 195.84M | 143.04M | 308.23M | 439.00M | 221.13M |
| Net Income | 73.31M | 30.44M | 162.31M | 323.22M | 154.91M |
Balance Sheet | |||||
| Total Assets | 2.73B | 2.70B | 2.74B | 2.81B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 257.50M | 223.37M | 272.69M | 503.57M | 453.36M |
| Total Debt | 564.68M | 580.94M | 595.01M | 632.91M | 220.86M |
| Total Liabilities | 1.32B | 1.32B | 1.37B | 1.52B | 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
Positive
72.13
Price Trends
63.57
Positive
64.45
Positive
66.38
Positive
Market Momentum
2.00
Negative
75.04
Negative
93.72
Negative
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 72.13 is above the 20-day moving average (MA) of 65.01, above the 50-day MA of 63.57, and above the 200-day MA of 66.38, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 75.04 is Negative, neither overbought nor oversold. The STOCH value of 93.72 is Negative, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $779.55M | 8.70 | 11.68% | 2.09% | 14.28% | 148.61% | |
72 Outperform | $2.03B | 13.85 | 23.90% | 1.02% | 9.62% | -18.69% | |
72 Outperform | $683.61M | 10.57 | 15.60% | 3.14% | 5.64% | -17.95% | |
71 Outperform | $1.96B | 22.56 | 6.27% | 2.77% | 14.00% | 100.44% | |
68 Neutral | $17.48B | 11.72 | 10.44% | 3.82% | 10.01% | 1.29% | |
67 Neutral | $521.30M | 6.60 | 31.54% | ― | 23.68% | 16.14% | |
64 Neutral | $1.09B | 12.84 | 10.08% | 4.87% | 18.52% | 65.66% |
* Financial Sector Average
Performance Comparison
STC
Stewart Information Services
72.13
3.96
5.81%
SAFT
Safety Insurance Group
74.39
-3.45
-4.43%
UFCS
United Fire Group
30.80
11.66
60.92%
UVE
Universal Insurance Holdings
24.56
4.89
24.86%
ACIC
American Coastal Insurance
11.07
0.05
0.45%
HCI
HCI Group
157.07
63.25
67.42%
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.
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.