Stewart Information Services Corporation (STC) Fundamental Analysis: Bull vs. Bear Case

STC

Stewart Information Services Corporation

Fundamental data last updated:September 2, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Property & Casualty

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 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.

VALUATION

P/E

15.73 Market Cap ($M USD)

$2.01B

Forward P/E

8.65 PEG

0.11 PRICE TO SALES

0.65 PRICE TO BOOK

1.24 EV / EBITDA

9.53 5-Year Average P/E

Free Cash Flow Yield

7.64%

DCF Value

$73.17

Graham Number

$70.89

Price to FCF

13.10 EV to FCF

16.35 Earnings Yield

6.36%

FCF Yield

7.64%

DIVIDEND

Yield

3.14%

Annual Payout

$2.08

Payout Ratio

47.03%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.20

Next Year EPS Growth Estimate

$7.64

Next Year Revenue Growth Estimate

$3.95B

Return on Equity (ROE)

8.36%

FREE CASH FLOW

Operating Margin

6.18%

Debt-to-Equity

0.47 Piotroski F-Score

5 Altman Z-Score

2.61 Return on Invested Capital (ROIC)

5.90%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

1.90 Interest Coverage

8.26 Gross Profit margin

79.44%

FCF PER SHARE

$4.99

REVENUE PER SHARE

$100.33

Gainseekers Quantitative Analysis

Summary

Stewart Information Services Corporation appears undervalued when juxtaposed with its DCF Value and Graham Number. The stock has traded below its intrinsic value, suggesting a potential mispricing by the market. With a Forward P/E of 9.13 and an Earnings Yield of 6.03%, the company offers a compelling case for growth at a reasonable price. The Altman Z-score of 2.64 indicates moderate financial health, suggesting the company is not at immediate risk of distress. Overall, the valuation metrics point to a solid investment opportunity for those seeking value.

AI Exposure / Tech Reliance

Operating within the insurance sector, Stewart Information Services is positioned to leverage AI for risk assessment and claims processing. As technology reshapes the industry, the company’s ability to integrate AI could enhance operational efficiency. However, the traditional nature of its business may slow rapid tech adoption compared to more agile tech-centric firms.

The Bull Case

For value and GARP investors, Stewart Information Services offers a tantalizing proposition. The ROIC of 5.9% and a robust FCF Yield of 8.23% underscore its capital efficiency. With a Piotroski F-Score of 5, the company shows moderate financial strength, while its Gross Profit Margin of 79.44% highlights strong pricing power. These metrics suggest a well-managed company capable of generating consistent cash flow, making it an attractive buy.

The Bear Case

Despite its strengths, Stewart Information Services faces structural challenges. The Price/Book ratio of 1.31 and Price/Sales ratio of 0.69 suggest the stock might not be as cheap as it appears at first glance. Additionally, the company’s Current and Quick Ratios are zero, indicating potential liquidity issues. The proximity to its 52-week high, with only a 12.73% distance, suggests the stock could be technically overextended, posing a risk for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$80.50

Institutional Ownership %

1-Year Beta

1.04 Insider Buying % (6 Mo)

Distance to 52-Week High

18.91%

Distance to 52-Week Low

14.70%

EARNINGS SURPRISE %

50.00%

50-DAY SMA

$65.71

200-DAY SMA

$69.58

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.