State Street (STT) AI Stock Analysis

• Market Cap: $32.59B
• Dividend Yield: 2.67%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.04
• Revenue Growth: 5.62%
• EPS Growth: 49.49%
• Country: US
• Employees: 52,711
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.78
• Shares Outstanding: 279,312,440
• 10 Day Avg. Volume: 2,725,073
• 30 Day Avg. Volume: 2,067,036
• PEG Ratio: 0.23
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -2.07
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 16.20
• 1Y Price Target: $131.42
• Price Target Upside: 12.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $129.00 ▲(10.55% Upside)

State Street's strong earnings growth and strategic initiatives are the most significant factors driving its stock score. The company's robust valuation and positive technical indicators further support its attractiveness. However, cash flow challenges and increased expenses present potential risks.

Positive Factors

Revenue Growth

State Street's strong revenue growth indicates robust demand for its services, enhancing its market position and supporting long-term financial stability.

Strategic Partnerships

Partnerships with fintech firms like Apex enhance service offerings and operational efficiency, strengthening competitive advantage and future growth potential.

Assets Under Management Growth

Significant growth in assets under management reflects strong client trust and effective investment strategies, boosting revenue from management fees.

Negative Factors

Increasing Debt Levels

Rising debt levels could strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flows indicate potential liquidity issues, which can limit the company's ability to fund operations and strategic initiatives over time.

Higher Expenses

Rising expenses, driven by investments in technology and strategic initiatives, may pressure profit margins and reduce financial flexibility.

State Street Business Overview & Revenue Model

Company Description

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors. It also engages in the provision of portfolio management and risk analytics, as well as trading and post-trade settlement services with integrated compliance and managed data. In addition, the company offers investment management strategies and products, such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies. Further, it provides services and solutions, including environmental, social, and governance investing; defined benefit and defined contribution; and global fiduciary solutions, as well as exchange-traded fund under the SPDR ETF brand. The company provides its products and services to mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1792 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

State Street generates revenue primarily through its Investment Servicing and Investment Management segments. The Investment Servicing segment earns income by providing asset servicing solutions, including custody, accounting, and administration services, charging fees based on the assets under management (AUM) and transaction volumes. The Investment Management segment, particularly through State Street Global Advisors, derives revenue from investment management fees charged on the AUM of its clients, which include pension funds, insurance companies, and sovereign wealth funds. Additionally, State Street benefits from performance fees and client service fees, as well as fees from ETFs (Exchange-Traded Funds) and other investment products. Strategic partnerships with technology providers and financial institutions enhance its service offerings and operational efficiency, further contributing to its revenue streams.

State Street Financial Statement Overview

Summary

State Street shows solid revenue growth and operational efficiency, but faces challenges with high leverage and negative cash flows. Profitability metrics are stable, yet cash flow issues and debt management need attention for long-term financial health.

Income Statement

State Street's income statement shows a consistent revenue growth trend, with a TTM revenue growth rate of 1.44%. The gross profit margin is strong at 58.92%, indicating effective cost management. However, the net profit margin is relatively lower at 12.68%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.40, indicating significant leverage, which could pose risks if not managed properly. The return on equity is moderate at 10.84%, showing decent profitability relative to equity. The equity ratio is not explicitly calculated, but the company's equity position appears stable given the total assets.

Cash Flow

Cash flow analysis shows challenges, with negative operating cash flow and free cash flow in the TTM period. Despite this, the free cash flow to net income ratio is positive at 1.10, indicating that the company is generating cash relative to its net income. However, the negative operating cash flow coverage ratio highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.91B	21.97B	18.37B	13.67B	12.03B	12.07B
Gross Profit	13.63B	12.84B	11.90B	12.11B	12.06B	11.61B
EBITDA	4.13B	4.00B	3.20B	4.48B	4.73B	4.41B
Net Income	2.98B	2.69B	1.94B	2.77B	2.69B	2.42B
Balance Sheet
Total Assets	371.07B	353.24B	297.26B	301.45B	314.62B	314.71B
Cash, Cash Equivalents and Short-Term Investments	74.20B	134.55B	136.24B	146.20B	183.45B	183.45B
Total Debt	34.51B	36.79B	24.37B	18.27B	15.18B	21.20B
Total Liabilities	343.43B	327.91B	273.46B	276.26B	287.26B	288.51B
Stockholders Equity	27.64B	25.33B	23.80B	25.19B	27.36B	26.20B
Cash Flow
Free Cash Flow	-6.14B	-14.14B	-126.00M	11.22B	-7.52B	2.97B
Operating Cash Flow	-5.57B	-13.21B	690.00M	11.95B	-6.71B	3.53B
Investing Cash Flow	-25.98B	-39.48B	12.74B	6.82B	-2.17B	-65.53B
Financing Cash Flow	32.24B	51.79B	-13.35B	-18.43B	9.05B	62.17B

State Street Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 116.69 is above the 20-day moving average (MA) of 115.30, above the 50-day MA of 113.98, and above the 200-day MA of 100.80, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 50.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.

State Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	―	$75.36B	15.59	12.21%	1.85%	4.22%	51.01%
SEIC	―	$9.87B	14.82	29.38%	1.21%	9.33%	33.17%
TROW	―	$22.20B	11.08	19.28%	4.81%	4.26%	0.42%
STT	―	$32.59B	12.35	11.14%	2.67%	5.62%	49.49%
NTRS	―	$24.33B	15.00	13.31%	2.43%	-4.52%	7.01%
BEN	―	$11.86B	43.80	2.16%	5.60%	4.72%	-67.85%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

State Street Corporate Events

State Street to Redeem $500M Senior Notes

On October 29, 2025, State Street Corporation announced its decision to redeem its $500 million 5.751% Fixed-to-Floating Rate Senior Notes due 2026 on November 4, 2025. The redemption will be executed at the principal amount plus accrued interest, and State Street plans to use cash on hand for this transaction. This move may impact the company’s financial operations by reducing its debt obligations.

The most recent analyst rating on (STT) stock is a Buy with a $136.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street Issues $1 Billion Senior Notes

On October 23, 2025, State Street Corporation issued $1 billion in Fixed-to-Floating Rate Senior Notes due 2036. The issuance, conducted through a public offering, is expected to yield net proceeds of approximately $993.9 million, which will potentially impact the company’s financial operations and market positioning.

The most recent analyst rating on (STT) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street’s Earnings Call: Strong Growth Amid Challenges

State Street’s recent earnings call painted a picture of robust financial health, underscored by impressive revenue and earnings growth. The company celebrated successful product launches and strategic partnerships, though it acknowledged challenges such as rising expenses and stagnant net interest income.

State Street’s Strong Q3 2025 Performance and Strategic Growth

State Street Corporation is a leading global financial services provider, specializing in investment servicing, investment management, and investment research and trading, with a significant presence in over 100 markets worldwide.

State Street Reports Strong Q3 2025 Financial Results

On October 17, 2025, State Street reported its third-quarter 2025 financial results, highlighting a strong performance with an EPS of $2.78. The company achieved a record $51.7 trillion in assets under custody/administration and $5.4 trillion in assets under management. The results were driven by a 9% year-over-year increase in total revenue and consistent financial performance, marked by seven consecutive quarters of positive operating leverage. State Street’s strategic focus on innovation and client capabilities was underscored by a new partnership with Apex Fintech Solutions and the launch of 39 new investment products. The company returned $637 million to shareholders through repurchases and dividends, and increased its quarterly dividend by 11% to $0.84 per share, positioning itself for sustained growth.

The most recent analyst rating on (STT) stock is a Buy with a $126.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street Appoints Brian J. Porter as Director

On September 15, 2025, State Street Corporation announced the election of Brian J. Porter as an independent director, who will also serve on the Human Resources and Risk Committees. This appointment is part of State Street’s ongoing efforts to strengthen its governance and oversight, with Mr. Porter receiving compensation consistent with other non-employee directors, reflecting the company’s commitment to maintaining robust leadership and strategic direction.

The most recent analyst rating on (STT) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.