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Stewart Information Services
(NYSE:STC)
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Rating:71Outperform
Price Target:
$76.00
▲(12.73% Upside)
Action:Upgraded
Date:08/05/26
Overall score reflects improving fundamentals and cash flow strength (recovery in profitability, solid free cash flow growth, and moderate leverage) plus a constructive earnings outlook calling for faster earnings than revenue growth. Valuation is supportive with a ~3.1% dividend yield and mid-range P/E. Technicals are more neutral than strongly bullish, keeping the score in the low-70s rather than higher.
Positive Factors
Strong free cash flow
Stewart’s free cash flow of roughly $192M TTM, up ~25%, and operating cash flow (~$238M) signal durable cash-generation. Strong FCF supports dividends, bolt-on acquisitions, and deleveraging without requiring operational retrenchment, improving financial flexibility through cycles.
Negative Factors
Housing-market cyclicality
Stewart’s core title and settlement revenues are tightly coupled to transaction volumes. With existing home sales at multi-decade lows and high rates constraining activity, revenue and underwriting exposure face a persistent headwind that can depress growth and increase volatility for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Stewart’s free cash flow of roughly $192M TTM, up ~25%, and operating cash flow (~$238M) signal durable cash-generation. Strong FCF supports dividends, bolt-on acquisitions, and deleveraging without requiring operational retrenchment, improving financial flexibility through cycles.
Read all positive factors
Stewart Information Services Key Performance Indicators (KPIs)
Any
Revenue by Geography
Allocates revenue across states or regions to show where the company is most exposed and where growth or weakness is concentrated, helping assess sensitivity to local housing markets, regional demand swings, and state-specific regulations.
Allocates revenue across states or regions to show where the company is most exposed and where growth or weakness is concentrated, helping assess sensitivity to local housing markets, regional demand swings, and state-specific regulations.
Data provided by:
The Fly
The FlyStewart Information Services (STC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.08B
Dividend Yield3.08%
Average Volume (3M)146.97K
Price to Earnings (P/E)14.9
Beta (1Y)0.74
Revenue Growth22.49%
EPS Growth44.43%
CountryUS
Employees8,100
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.59
Shares Outstanding30,522,200
10 Day Avg. Volume134,661
30 Day Avg. Volume146,971
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.24
Price to Sales (P/S)0.70
P/FCF Ratio15.42
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$79.00Price Target Upside17.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.65
Revenue Forecast (FY)$3.51B
Stewart Information Services Business Overview & Revenue Model
Company Description
Stewart Information Services Corporation (STC) operates as a key provider of title insurance and related services essential for real estate transactions, delivered through its various subsidiary entities. The company's operations are divided into ...
How the Company Makes Money
Stewart primarily makes money by facilitating real estate transactions and managing the risk associated with property title through a mix of insurance and fee-based services. A core revenue stream is title insurance: Stewart (as an underwriter and...
Stewart Information Services Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives — robust revenue growth (Q2 +25%, YTD +26%), substantial real estate solutions and agency momentum, commercial expansion, improved loss ratio, and a strong balance sheet with ample excess capital. Management acknowledged near-term margin pressure from deliberate investments (approximately $8M this quarter and increased headcount YTD), centralized/bulk volatility, and a soft housing market tied to high interest rates. Management expects investments to produce multi-quarter payback and plans targeted acquisitions. On balance, highlights outweigh the lowlights with confidence in execution and capital deployment driving a constructive outlook.Positive Updates
Top-Line and Earnings Growth
Year-to-date revenues up 26% and adjusted pre-tax income up 45%. Second quarter total revenues were $177 million, up ~25% year-over-year; Q2 net income improved by $5 million or 17%. Diluted EPS was $1.21 vs $1.13 last year; adjusted Q2 net income $43 million (diluted EPS $1.39) vs $38 million ($1.34) prior-year.
Negative Updates
Challenged Housing Market
Existing home sales remain at multi-decade lows with modest growth of ~2% year-to-date (management now forecasts ~2% vs prior 6–8% expectations). Annualized existing home sales hover in the low-4 million range (4.0–4.1M). Interest rates (~6.5%) continue to constrain buyer activity despite modest price appreciation (~1.5% QoQ).
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line and Earnings Growth
Year-to-date revenues up 26% and adjusted pre-tax income up 45%. Second quarter total revenues were $177 million, up ~25% year-over-year; Q2 net income improved by $5 million or 17%. Diluted EPS was $1.21 vs $1.13 last year; adjusted Q2 net income $43 million (diluted EPS $1.39) vs $38 million ($1.34) prior-year.
Read all positive updates
Company Guidance
Stewart guided that, assuming the housing market stays flat, it expects full-year revenue growth of roughly 20% and earnings growth of about 30% (i.e., earnings outpacing revenue), with an expected year‑over‑year margin improvement of roughly 0.5 percentage points and a long‑term target of 12% adjusted margins when existing home sales return to ~5 million units; near‑term outlook includes title losses averaging in the mid‑3%–4% range (Q2 title loss ratio was 3.2%), other operating expenses running ~27%–28% going forward (Q2 was 27%), and employee‑cost pressure (employee costs up ~17% YTD while the employee cost ratio improved to 27% from 30%). Management noted Q2 results of $177M revenue (+25%) with Q2 real estate solutions revenue $85M (+75%) and adjusted pre‑tax income $27M (14% margin), YTD revenue +26% and adjusted pre‑tax income +45%, average domestic commercial fee per file ≈ $16,900 and average residential fee ≈ $3,200 (+10%), ~$8M of incremental hiring spend in the quarter (about $3–4M commercial, ~$2M direct, $2–3M agency), roughly $400M of cash/investments in excess of statutory reserves, and plans to deploy most of the capital raised on acquisitions expected to close in the next 60–120 days.Stewart Information Services Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.27B | 2.92B | 2.49B | 2.26B | 3.07B | 3.31B |
| Gross Profit | 2.63B | 2.56B | 2.41B | 2.18B | 2.97B | 3.18B |
| EBITDA | 276.65M | 241.43M | 195.84M | 143.04M | 308.23M | 475.39M |
| Net Income | 134.74M | 115.56M | 73.31M | 30.44M | 162.31M | 323.22M |
Balance Sheet | ||||||
| Total Assets | 3.29B | 3.25B | 2.73B | 2.70B | 2.74B | 2.81B |
| Cash, Cash Equivalents and Short-Term Investments | 308.52M | 369.67M | 257.50M | 272.39M | 272.69M | 503.57M |
| Total Debt | 770.98M | 768.76M | 564.68M | 580.94M | 595.01M | 632.91M |
| Total Liabilities | 1.62B | 1.60B | 1.32B | 1.32B | 1.37B | 1.52B |
| Stockholders Equity | 1.66B | 1.64B | 1.40B | 1.37B | 1.36B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 149.97M | 132.28M | 95.14M | 45.25M | 143.91M | 350.49M |
| Operating Cash Flow | 238.20M | 205.69M | 135.61M | 83.04M | 191.86M | 390.29M |
| Investing Cash Flow | -412.58M | -368.58M | -87.26M | -29.97M | -300.67M | -645.28M |
| Financing Cash Flow | 258.22M | 265.21M | -60.96M | -69.10M | -123.22M | 310.37M |
Stewart Information Services Technical Analysis
Positive
67.42
Price Trends
67.40
Positive
66.44
Positive
67.44
Positive
Market Momentum
-0.24
Positive
51.56
Neutral
46.03
Neutral
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 67.42 is below the 20-day moving average (MA) of 67.91, above the 50-day MA of 67.40, and below the 200-day MA of 67.44, indicating a bullish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.65B | 13.53 | 16.84% | ― | 37.99% | 34.78% | |
81 Outperform | $2.29B | 7.11 | 30.79% | 0.89% | 22.83% | 86.58% | |
74 Outperform | $1.52B | 22.08 | 7.16% | 3.57% | 7.04% | -18.57% | |
71 Outperform | $2.08B | 14.86 | 8.40% | 3.11% | 22.49% | 44.43% | |
71 Outperform | $796.81M | 13.87 | 15.91% | ― | 14.86% | -30.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | $1.62B | -3.26 | -19.33% | 4.44% | -3.92% | -256.50% |
* Financial Sector Average
STC
Stewart Information Services
68.20
0.40
0.59%
SAFT
Safety Insurance Group
103.35
33.59
48.16%
KMPR
Kemper
27.42
-23.91
-46.58%
HCI
HCI Group
184.35
31.04
20.25%
ROOT
Root
51.45
-36.60
-41.57%
SKWD
Skyward Specialty Insurance Group, Inc.
59.80
11.90
24.84%
Stewart Information Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Stewart Information Services Unveils Strategic Growth Plan
Positive
Jul 17, 2026
On July 16, 2026, Stewart Information Services began using a new investor presentation, made available via its website, to outline its strategic and financial trajectory to analysts and shareholders. The deck highlights strong recent performance, ...
Dividends
Stewart Information Services Declares Second-Quarter Cash Dividend
Positive
Jun 1, 2026
On June 1, 2026, Stewart Information Services Corporation announced that its board of directors declared a cash dividend of $0.525 per share for the second quarter of 2026. The dividend will be paid on June 30, 2026, to common stockholders of reco...
Executive/Board ChangesShareholder Meetings
Stewart Information Shareholders Back Directors and Executive Pay
Positive
May 11, 2026
On May 7, 2026, Stewart Information Services Corporation held its 2026 Annual Meeting of Stockholders, with 26,970,271 of 30,502,735 eligible shares represented, satisfying quorum requirements. Stockholders elected ten directors, including Thomas ...
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.