STT

State Street

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/17/26

Business Summary

State Street operates as a global asset manager and custodian, generating revenue from asset servicing, management fees, and institutional fund administration. Its moat is built on scale, embedded client relationships, and the operational complexity of custody and back-office infrastructure that large institutions are reluctant to switch. The business throws off recurring fee income tied to assets under management and administration, which provides baseline revenue stability. Cash generation ultimately depends on market levels, client asset flows, and its ability to maintain spread income while defending fee margins in an increasingly cost-competitive asset management landscape.

VALUATION

P/E

14.8

Market Cap ($M USD)

$38,860

Forward P/E

10.6

PEG

1.6

PRICE TO SALES

2.9

PRICE TO BOOK

1.6

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

2.40%

Annual Payout

$3.36

Payout Ratio

33.50%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

10.10%

Financial Health & Profitability

Earnings Per Share

$9.55

Next Year EPS Growth Estimate

$13.22

Next Year Revenue Growth Estimate

3.50%

Return on Equity (ROE)

9.80%

Operating Margin

29.60%

Debt-to-Equity

1

Piotroski F-Score

5

Altman Z-Score

0.3

Return on Invested Capital (ROIC)

20.10%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 14.8x earnings and just 10.6x forward earnings, the market is pricing STT like a no-growth balance sheet utility, not a scaled asset management franchise. The forward multiple implies earnings acceleration relative to today, yet a PEG of 1.6 suggests that growth is not dramatically underpriced. The real flashing warning sign is the Altman Z-Score of 0.3, which signals extreme balance sheet fragility, completely at odds with a $38,860M market cap institution. A 3.50% ROE and 9.80% operating margin are uninspiring for Financial Services, so while valuation looks optically inexpensive, the market is discounting structural weakness and potential financial stress rather than irrationally mispricing growth.

AI Exposure / Tech Reliance

As an Asset Management firm, STT sits in a data-heavy, scale-driven segment where AI enhances operational efficiency, risk analytics, and portfolio construction. Firms that can automate reporting, custody operations, and compliance through advanced systems protect margins in a low-fee environment. The key question is whether its 9.80% operating margin can expand through tech leverage, because without margin expansion, AI becomes defensive rather than transformative.

The Bull Case

A GARP investor could argue the setup is asymmetric: a 10.6 forward P/E with a 20.10% ROIC is a rare combination if sustainable. That level of invested capital efficiency dwarfs the 3.50% ROE, implying capital is being deployed productively even if headline profitability looks muted. A Piotroski F-Score of 5 is neutral but not distressed, and with Debt/Equity at 29.60%, leverage is not excessive for a financial institution. Layer in a 2.40% dividend and a payout ratio of $3.36, and you have a cash-returning franchise trading at a discount multiple with institutional-scale relevance in global markets.

The Bear Case

The bear case is blunt: a 0.3 Altman Z-Score is deep in distress territory, and the market rarely assigns that without reason. A PEG of 1.6 means you are not stealing growth at this valuation, and with short interest at 10.10% of float, there is a meaningful cohort betting against the story. Return on Equity at 3.50% is simply too low for a high-quality financial compounder, and a 9.80% operating margin leaves little cushion if revenue growth disappoints. If earnings estimates falter, that 10.6 forward P/E can quickly rerate upward without any price appreciation, trapping value investors in a statistical cheap stock.

Market Sentiment & Smart Money

Short Interest %

0.00%

Analyst Consensus

1.84

Average Analyst Price Target

$144.74

Institutional Ownership %

96.40%

1-Year Beta

1.19

Insider Buying % (6 Mo)

0.40%%

Distance to 52-Week High

99.70%%

Distance to 52-Week Low

184.70%%