📊 STC Key Takeaways
Is Stewart Information Services Corp. (STC) a Good Investment?
Stewart Information Services exhibits fundamental deterioration with net income declining 11.2% YoY while carrying extremely thin operating margins of 3.0% and net margins of 2.2%. Most critically, the company is burning cash with negative operating cash flow (-$4.5M) and negative free cash flow (-$20.9M), indicating severe earnings quality concerns and unsustainable capital structure despite modest revenue growth.
Why Buy Stewart Information Services Corp. Stock? STC Key Strengths
- Moderate leverage with 0.27x Debt/Equity ratio and adequate interest coverage of 4.7x
- Positive net income of $17.0M demonstrates continued profitability in ongoing business
- Reasonable cash position of $271.2M provides liquidity buffer
STC Stock Risks: Stewart Information Services Corp. Investment Risks
- Negative operating cash flow and free cash flow signal potential earnings quality issues and operational distress
- Net income declined 11.2% YoY despite 2.2% revenue growth, indicating margin compression and deteriorating business fundamentals
- Extremely weak return metrics (ROE 1.0%, ROA 0.5%) show negligible capital efficiency
- Cyclical title insurance industry with thin margins limits pricing power and operational flexibility
- Sustainable negative free cash flow cannot be maintained long-term without asset sales or increased leverage
Key Metrics to Watch
- Operating Cash Flow recovery (critical - currently negative at -$4.5M)
- Net Income trend (currently declining despite revenue growth)
- Operating Margin expansion from current 3.0% level
- Free Cash Flow improvement and path to positive territory
- Debt/Equity maintenance as company burns cash
Stewart Information Services Corp. (STC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
STC Profit Margin, ROE & Profitability Analysis
STC vs Finance Sector: How Stewart Information Services Corp. Compares
How Stewart Information Services Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stewart Information Services Corp. Stock Overvalued? STC Valuation Analysis 2026
Based on fundamental analysis, Stewart Information Services Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stewart Information Services Corp. Balance Sheet: STC Debt, Cash & Liquidity
STC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stewart Information Services Corp.'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.11 reflects profitable operations.
STC Revenue Growth, EPS Growth & YoY Performance
STC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2024 | $519.5M | $3.1M | $0.11 |
| Q3 2023 | $590.3M | $14.0M | $0.51 |
| Q2 2023 | $538.1M | $7.6M | $0.28 |
| Q1 2023 | $519.5M | -$8.2M | $-0.30 |
| Q3 2022 | $717.6M | $29.4M | $1.08 |
| Q2 2022 | $802.0M | $61.7M | $2.26 |
| Q1 2022 | $681.4M | $54.2M | $2.01 |
| Q3 2021 | $590.7M | $55.9M | $2.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stewart Information Services Corp. Dividends, Buybacks & Capital Allocation
STC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stewart Information Services Corp. (CIK: 0000094344)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STC
What is the AI rating for STC?
Stewart Information Services Corp. (STC) has an AI rating of SELL with 76% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STC's key strengths?
Claude: Moderate leverage with 0.27x Debt/Equity ratio and adequate interest coverage of 4.7x. Positive net income of $17.0M demonstrates continued profitability in ongoing business.
What are the risks of investing in STC?
Claude: Negative operating cash flow and free cash flow signal potential earnings quality issues and operational distress. Net income declined 11.2% YoY despite 2.2% revenue growth, indicating margin compression and deteriorating business fundamentals.
What is STC's revenue and growth?
Stewart Information Services Corp. reported revenue of $781.3M.
Does STC pay dividends?
Stewart Information Services Corp. pays dividends, with $16.3M distributed to shareholders in the trailing twelve months.
Where can I find STC SEC filings?
Official SEC filings for Stewart Information Services Corp. (CIK: 0000094344) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STC's EPS?
Stewart Information Services Corp. has a diluted EPS of $0.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is STC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Stewart Information Services Corp. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STC stock overvalued or undervalued?
Valuation metrics for STC: ROE of 1.0% (sector avg: 12%), net margin of 2.2% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy STC stock in 2026?
Our dual AI analysis gives Stewart Information Services Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STC's free cash flow?
Stewart Information Services Corp.'s operating cash flow is $-4.5M, with capital expenditures of $16.4M. FCF margin is -2.7%.
How does STC compare to other Finance stocks?
Vs Finance sector averages: Net margin 2.2% (avg: 25%), ROE 1.0% (avg: 12%), current ratio N/A (avg: 1.2).