Stewart Information Services Corp. (STC)
NYSE:STC
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Stewart Information Services
(NYSE:STC)
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Rating:72Outperform
Price Target:
$76.00
▲(12.56% Upside)
Action:UpgradedDate:04/23/26
STC scores well on improving financial momentum (notably the 2025 free-cash-flow rebound) and bullish technical trend signals. The earnings call supports the recovery narrative with strong Q1 execution and segment strength, but lowered housing-growth guidance, rate sensitivity, and rising leverage temper the upside; valuation and dividend are supportive but not a major differentiator.
Positive Factors
Strategic M&A and RES expansion
Strategic acquisitions (MCS, NAN) materially scale Stewart’s fee-based Real Estate Solutions and appraisal capabilities, diversifying revenue beyond cyclical title premiums. This structurally increases higher-margin services and creates cross-sell and scale benefits that can sustain growth and margins over the medium term.
Negative Factors
Housing-market and rate sensitivity
Stewart’s core title and settlement revenues are structurally tied to transaction volumes; a lower housing-growth baseline and higher rates reduce the addressable market and make revenue generation more dependent on cyclical commercial wins and accretive M&A, constraining durable top-line expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic M&A and RES expansion
Strategic acquisitions (MCS, NAN) materially scale Stewart’s fee-based Real Estate Solutions and appraisal capabilities, diversifying revenue beyond cyclical title premiums. This structurally increases higher-margin services and creates cross-sell and scale benefits that can sustain growth and margins over the medium term.
Read all positive factors
Stewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.14B
Dividend Yield2.88%
Average Volume (3M)146.97K
Price to Earnings (P/E)28.0
Beta (1Y)0.81
Revenue Growth21.30%
EPS GrowthN/A
CountryUS
Employees6,800
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.78
Shares Outstanding30,502,735
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 Cap176.87
Enterprise Value/Revenue129.26
Enterprise Value/Gross Profit147.35
Enterprise Value/Ebitda1.56K
Forecast
1Y Price Target
$81.00Price Target Upside19.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)6.01
Revenue Forecast (FY)$3.40B
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized pronounced operational and financial progress—notably 28% revenue growth, strong segment-level outperformance (Title, National Commercial Services, RES), improved margins, healthy liquidity and strategic acquisitions—despite persistent residential market weakness, interest rate sensitivity, and near-term integration costs. On balance, the company highlighted broad-based growth and margin expansion with manageable risks tied to housing demand and transaction lumpyness.Positive Updates
Strong Adjusted EPS and Revenue Growth
Adjusted diluted EPS of $0.78 in Q1 2026 (GAAP EPS $0.55) with total revenues of $781 million and adjusted revenue growth of 28% year-over-year; adjusted net income rose to $24 million from $7 million a year ago.
Negative Updates
Weak Residential Transaction Activity
Residential transaction activity remained historically low; existing home sales were relatively flat and down 1% YoY in Q1 and median sale price growth was weak, up just under 1% for the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted EPS and Revenue Growth
Adjusted diluted EPS of $0.78 in Q1 2026 (GAAP EPS $0.55) with total revenues of $781 million and adjusted revenue growth of 28% year-over-year; adjusted net income rose to $24 million from $7 million a year ago.
Read all positive updates
Company Guidance
Management guided that residential market growth for 2026 will be more muted than previously forecast, now expected around 3%–5% (vs prior 6%–8%) with the risk the market could “bounce along the bottom” near ~4.0M existing home sales if geopolitical tensions persist; they expect Q2 momentum to continue if rates remain at or below 2025 levels (recently near 6.0%–6.3%). They guided title losses to average roughly 3.5%–4.0% in 2026 (Q1 was 3.1%), and they expect Real Estate Solutions (RES) full‑year adjusted pretax margins in the low‑teens (Q1 was 12.5%, trending to ~12%–13%+). At the enterprise level management said they see the potential to sustain roughly ~15% company growth (management drove Q1 adjusted revenue growth of 28%, adjusted net income $24M and adjusted EPS $0.78) while pursuing targeted acquisitions (MCS ~ $160M+ annual revenue, ~ $40M/quarter; recent NAN appraisal deal ~ $40M transaction) and noted continued strength in commercial economics (average domestic commercial fee/file up 33% to $21,000; average domestic residential fee/file ~$3,300).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
Positive
67.52
Price Trends
65.14
Positive
67.68
Negative
67.97
Negative
Market Momentum
0.52
Negative
64.41
Neutral
86.75
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 67.52 is above the 20-day moving average (MA) of 62.08, above the 50-day MA of 65.14, and below the 200-day MA of 67.97, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 86.75 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 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 | $2.02B | 5.59 | 38.04% | 0.82% | 20.07% | 129.35% | |
77 Outperform | $2.00B | 12.16 | 18.27% | ― | 23.66% | 40.04% | |
76 Outperform | $1.11B | 11.55 | 11.29% | 4.59% | 13.32% | 40.57% | |
72 Outperform | $2.14B | 27.96 | 0.03% | 2.88% | 21.30% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $821.25M | 27.78 | 10.96% | ― | 28.95% | 32.09% | |
56 Neutral | $1.95B | -74.49 | 5.08% | 3.15% | 3.36% | -55.22% |
* Financial Sector Average
STC
Stewart Information Services
69.99
6.88
10.90%
SAFT
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75.16
2.49
3.43%
KMPR
Kemper
33.69
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-41.33%
HCI
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153.57
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6.70%
ROOT
Root
54.48
-82.15
-60.13%
SKWD
Skyward Specialty Insurance Group, Inc.
45.45
-8.12
-15.16%
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.