Stewart Information Services (STC) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 2.97%
• Average Volume (3M): 146.97K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.83
• Revenue Growth: 16.22%
• EPS Growth: N/A
• Country: US
• Employees: 6,800
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.64
• Shares Outstanding: 27,998,524
• 10 Day Avg. Volume: 134,661
• 30 Day Avg. Volume: 146,971
• PEG Ratio: 0.18
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 19.60
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: 11.71
• 1Y Price Target: $78.00
• Price Target Upside: 14.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $79.00 ▲(15.72% Upside)

Stewart Information Services demonstrates strong financial performance with robust revenue growth and excellent gross profit margins. The recent earnings call further supports a positive outlook with significant revenue and earnings growth, strategic expansion, and increased dividends. While technical indicators show mixed momentum, the stock's valuation is reasonable, and the dividend yield is attractive. Challenges in the residential real estate market and office asset class are noted, but the company's strategic initiatives and recognition as a top workplace provide confidence in its future prospects.

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 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.

How the Company Makes Money

Stewart 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 Financial Statement Overview

Summary

Stewart Information Services shows robust financial health with strong revenue growth and excellent gross profit margins. The balance sheet is stable with moderate leverage and improving return on equity. Cash flow generation is impressive, although there is some volatility in operating cash flow. The company is well-positioned for future growth, but there is room for improvement in net profitability and operational efficiency.

Income Statement

Stewart Information Services has demonstrated a solid revenue growth rate of 4.71% in the TTM, recovering from previous declines. The gross profit margin is exceptionally high at 97.62%, indicating strong cost management. However, the net profit margin is relatively low at 3.29%, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are stable, reflecting consistent earnings before interest and taxes.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.40, indicating a balanced approach to leveraging. Return on equity is improving, currently at 6.22%, which is a positive sign of profitability. The equity ratio stands at 51.68%, showcasing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Stewart Information Services has shown a significant free cash flow growth rate of 4% in the TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is exceptionally high at 404.21, highlighting efficient cash utilization. However, the operating cash flow to net income ratio is low, suggesting potential volatility in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.49B	2.26B	3.07B	3.31B	2.29B
Gross Profit	2.60B	2.41B	2.18B	2.97B	3.18B	1.91B
EBITDA	207.34M	195.84M	143.04M	308.23M	475.39M	221.13M
Net Income	87.84M	73.31M	30.44M	162.31M	323.22M	154.91M
Balance Sheet
Total Assets	2.78B	2.73B	2.70B	2.74B	2.81B	1.98B
Cash, Cash Equivalents and Short-Term Investments	23.50M	257.50M	272.39M	272.69M	503.57M	453.36M
Total Debt	575.79M	564.68M	580.94M	595.01M	632.91M	220.86M
Total Liabilities	1.33B	1.32B	1.32B	1.37B	1.52B	966.17M
Stockholders Equity	1.44B	1.40B	1.37B	1.36B	1.28B	1.01B
Cash Flow
Free Cash Flow	67.74B	95.14M	45.25M	143.91M	350.49M	260.81M
Operating Cash Flow	167.57M	135.61M	83.04M	191.86M	390.29M	275.81M
Investing Cash Flow	-60.49M	-87.26M	-29.97M	-300.67M	-645.28M	-231.37M
Financing Cash Flow	-62.91M	-60.96M	-69.10M	-123.22M	310.37M	54.30M

Stewart Information Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.27
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STC, the sentiment is Negative. The current price of 68.27 is below the 20-day moving average (MA) of 70.25, below the 50-day MA of 72.08, and above the 200-day MA of 66.77, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STC.

Stewart Information Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STC	―	$1.91B	19.00	7.08%	2.97%	16.22%	―
SAFT	―	$1.02B	12.03	10.08%	5.27%	18.52%	65.66%
SKWD	―	$1.85B	13.49	16.06%	―	22.56%	2.19%
HCI	―	$2.64B	18.08	23.90%	0.80%	9.62%	-18.69%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	―	$1.24B	16.94	27.52%	―	59.76%	―
KMPR	―	$2.82B	8.48	12.21%	2.82%	2.75%	572.22%

Stewart Information Services Corporate Events

Stewart Information Services Reports Robust Earnings Growth

Stewart Information Services Shines Amidst Market Challenges

Stewart Information Services Reports Strong Q3 2025 Results

Stewart Information Services Corporation is a global real estate services company that provides title insurance, closing and settlement services, and other specialized offerings for the mortgage and real estate industries. The company aims to be the premier title services provider through its comprehensive service and deep expertise.

Stewart Information Services Secures New Credit Agreement

On October 7, 2025, Stewart Information Services Corporation entered into a new senior unsecured credit agreement with PNC Bank, establishing a $300 million revolving credit facility maturing in October 2030. This agreement replaces the previous credit facility and includes an option to increase commitments by up to $125 million, supporting Stewart’s strategic growth initiatives and positioning it as a leading title services company.

The most recent analyst rating on (STC) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Stewart Information Services stock, see the STC Stock Forecast page.

Stewart Information Services Increases Annual Cash Dividend

On September 2, 2025, Stewart Information Services Corporation announced that its Board of Directors approved an increase in the annual cash dividend from $2.00 to $2.10 per share, starting with the third quarterly payment of 2025. The third quarter dividend of $0.525 per share will be payable on September 30, 2025, to shareholders of record on September 16, 2025. This move underscores Stewart’s commitment to delivering consistent returns to its shareholders, as stated by CEO Fred Eppinger.

The most recent analyst rating on (STC) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Stewart Information Services stock, see the STC Stock Forecast page.