Stifel Financial (SF) AI Stock Analysis

• Market Cap: $9.66B
• Dividend Yield: 1.83%
• Average Volume (3M): 694.70K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.28
• Revenue Growth: 12.85%
• EPS Growth: 20.21%
• Country: US
• Employees: 8,887
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Capital Markets
• EPS (TTM): 1.65
• Shares Outstanding: 102,726,650
• 10 Day Avg. Volume: 527,613
• 30 Day Avg. Volume: 694,698
• PEG Ratio: -0.97
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.56
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 1.70
• 1Y Price Target: $102.83
• Price Target Upside: 10.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: ―

Stifel Financial demonstrates strong financial performance with revenue growth and stable profitability, which are key strengths. However, technical analysis indicates a bearish trend with the stock trading below moving averages. Valuation is fair, supported by a reasonable P/E ratio and dividend yield. The recent earnings call reveals strong results but highlights short-term challenges, including legal charges and market volatility.

Positive Factors

Capital Markets Recovery

SF's valuation offers a free option on capital markets recovery—where outlook improved, and sticking to '25 guidance is a distinct positive.

Market Rally and Asset Growth

Client assets rose in November, ending the month at $513.9B, up 4.1% m/m. The increase in assets m/m was mostly attributed to the November market rally and financial advisor recruiting.

Recruitment and Organic Growth

Stifel Financial expressed optimism about recruitment in 2025, suggesting potential for future organic growth.

Negative Factors

Client Cash Decline

The 5% decline in client cash outpaced peers and previous declines, contributing to a negative outlook for the shares.

Earnings Dilution

IB guidance below expectations and points to ~5% earnings dilution.

Financial Instability

Client money markets and insured product balances fell more significantly than in previous years, indicating financial instability.

Stifel Financial Business Overview & Revenue Model

Company Description

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States, the United Kingdom, the rest of Europe, and Canada. It operates in three segments: Global Wealth Management, Institutional Group, and Other. The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts. It also participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services. The company was founded in 1890 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Stifel Financial makes money through various revenue streams primarily driven by its core business segments. The Global Wealth Management segment generates revenue through commissions and fees from advisory services, asset management, and brokerage services offered to individual and institutional clients. The Institutional Group segment earns revenue from underwriting, advisory services related to mergers and acquisitions, and trading activities. Stifel also benefits from interest income on client balances and portfolio investments. Strategic partnerships and acquisitions may also enhance their service offering and expand their market reach, contributing to their overall earnings.

Stifel Financial Financial Statement Overview

Summary

Stifel Financial demonstrates solid financial health with strong revenue growth and stable profitability. The balance sheet shows reduced leverage and a strong equity base, reflecting financial stability. However, the lack of EBIT and EBITDA reporting for 2024 limits a comprehensive profitability analysis. The cash flow remains positive, but there is room for improvement in cash flow efficiency.

Income Statement

Stifel Financial has demonstrated a strong revenue growth with a significant increase from $4.29 billion in 2023 to $5.95 billion in 2024, reflecting a robust growth rate of 38.8%. The gross profit margin improved from 79.8% in 2023 to 51% in 2024, but there was no EBIT or EBITDA reported for 2024, which limits profitability analysis. The net profit margin in 2024 was 12.3%, up from 12.2% in 2023, indicating stable profitability.

Balance Sheet

The company maintains a strong equity position with a steady increase in stockholders' equity from $5.29 billion in 2023 to $5.69 billion in 2024. The debt-to-equity ratio decreased from 0.22 in 2023 to 0.15 in 2024, reflecting reduced leverage. The equity ratio also improved from 14% in 2023 to 14.3% in 2024, suggesting a stable capital structure.

Cash Flow

Stifel Financial's free cash flow grew from $447.35 million in 2023 to $490.44 million in 2024, representing a growth rate of 9.6%. The operating cash flow to net income ratio was 0.67 in 2024, down from 0.95 in 2023, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio improved slightly, suggesting effective cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.95B	4.29B	4.33B	4.61B	3.70B
	Gross Profit
3.04B	3.43B	1.75B	1.15B	849.82M
	EBIT
-2.00B	769.90M	979.01M	1.07B	651.16M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
731.38M	522.54M	662.15M	824.86M	503.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.23B	3.36B	1.67B	4.08B	4.51B
	Total Assets
39.90B	37.73B	37.20B	34.05B	26.60B
	Total Debt
1.54B	1.18B	1.17B	1.17B	1.17B
	Net Debt
-1.37B	-2.19B	-1.03B	-789.85M	-1.11B
	Total Liabilities
34.21B	32.43B	31.87B	29.01B	22.37B
	Stockholders Equity
5.69B	5.29B	5.33B	5.03B	4.24B
Cash Flow		Free Cash Flow
416.65M	447.35M	1.08B	683.92M	1.59B
	Operating Cash Flow
490.44M	499.33M	1.16B	872.09M	1.66B
	Investing Cash Flow
-2.31B	923.96M	-4.32B	-6.97B	-1.69B
	Financing Cash Flow
980.10M	-254.58M	3.19B	5.79B	1.20B

Stifel Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 93.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SF, the sentiment is Negative. The current price of 93.35 is below the 20-day moving average (MA) of 94.79, above the 50-day MA of 90.05, and below the 200-day MA of 98.86, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 45.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SF.

Stifel Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLI	79 Outperform	$12.17B	29.96	19.93%	1.30%	24.88%	39.55%
EVR	74 Outperform	$9.12B	22.58	29.73%	1.37%	26.88%	68.65%
LAZ	72 Outperform	$4.11B	15.23	59.68%	4.58%	9.54%	―
PIPR	71 Outperform	$4.55B	22.38	17.59%	1.01%	12.29%	99.57%
SF	69 Neutral	$9.66B	17.93	11.48%	1.83%	12.85%	20.21%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
JEF	62 Neutral	$10.16B	17.07	6.38%	3.04%	16.62%	139.24%

Stifel Financial Corporate Events

Stifel Financial Reports Growth in Client Assets

On March 27, 2025, Stifel Financial Corp. announced its operating results for February 28, 2025, highlighting an 11% increase in total client assets to $506 billion and a 14% rise in fee-based client assets to $196 billion compared to the previous year. Despite strong investment banking pipelines, market uncertainty and volatility have impacted activity levels, with first-quarter 2025 investment banking revenue expected to match that of the first quarter of 2024.

Stifel Financial Reports Growth in Client Assets

On February 27, 2025, Stifel Financial Corp. reported its operating results for January 31, 2025, highlighting significant growth in client assets under administration and fee-based assets, which increased by 14% and 18% respectively, compared to the previous year. This growth was attributed to stronger markets and a robust recruiting pipeline. However, the company also noted a seasonal decline in Sweep deposits, resulting in a 4% decrease during January, while client money market and insured products saw a 7% increase from the same period last year.

Stifel Financial Updates Wealth Accumulation Plan 2025

On February 4, 2025, Stifel Financial Corp.’s Board of Directors’ Compensation Committee approved the Wealth Accumulation Plan 2025 Restatement, modifying certain provisions and restating previous documents. The committee also approved a Restricted Stock Unit Award Agreement and a Deferred Award Agreement, potentially impacting the company’s financial structuring and stakeholder interests.