QualityDipStocks / Finance · Specialty Insurers
Stewart Information Services STC
Outside our quality screen, so we don’t track its dips. It’s 41% below its 52-week high.
Outside our quality screen, trading below our fair value estimate.
Worth knowing
- Deepest drop from a 52-week high in over 3 years
- Down 42% from its 52-week high while revenue grew 22%
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $56.96+25%
- Market Value
- $45.02price +2%
- Off 52-wk high
- −41%
- Risk vs market
- Lowbeta 0.46
52-week range 8% of the way from its 52-week low to its high
Price $45.73Fair value est. $56.96Market Value $45.02
5 bullish · 5 bearish See why
Repriced or dip?
Dip: business intact
The price is 41% below its 52-week high (Nov 25), but the business held up: revenue +16.8%, revenue growth rate +6.3 pts, earnings per share +23.3%.
Some numbers held up (revenue +16.8%, revenue growth rate +6.3 pts, earnings per share +23.3%), others slipped (shares outstanding more shares, each owns less). The price is 41% below its 52-week high.
The price is 41% below its 52-week high, and the business changed too: shares outstanding more shares, each owns less.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 7 numbers, high vs now
- Revenue, last 12 months$2.8B → $3.3B (+16.8%)held up
- Revenue growth rate+16.2% → +22.5% a year (+6.3 pts)held up
- Earnings per share, 12 months$3.58 → $4.41 (+23.3%)held up
- Shares outstanding+7.1% (more shares, each owns less)changed
- Stock vs its sector (Finance)stock −41%, sector median +12% since Nov 25changed
- Price fall vs business numbersprice −41%, revenue/EPS/FCF median +20% (shown, not scored)
- Valuation multipleP/E 21.6× at the high → 10.4× now (shown, not scored)
Business numbers as reported at the high (12 months to Sep 30, 2025) vs the latest filing (12 months to Jun 30, 2026). Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
52-wk high: P/E 21.6×; 52-wk low: P/E 9.8×; now: P/E 10.4×.
| High | Low | Now | |
|---|---|---|---|
| Price | $77.17Nov 25 | $42.96Oct 26 | $45.73 |
| P/E | 21.6× | 9.8× | 10.4× |
What this means: a lower P/E than at the high means you pay less for each dollar of profit than buyers did then.
How it’s computed
Banks, insurers and lenders: cash flow includes deposits and loans, so a cash-flow model doesn't fit; we show P/E at each point instead. P/E = that day's close × diluted shares / 12-month net income, using only the filings that were public on that day.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 9.9% ±2 points. Bear = 10.5% and 7.9%; bull = 8.5% and 11.9%. A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, STC would need a return on equity of about 8% a year; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much STC moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.7× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.46
- Volatility
- 35% vs 13% SPY
- Correlation SPY
- 0.17
- Correlation QQQ
- 0.01
How it ranks
Where STC stands vs every one of the 2,467 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 3 measures
- Discount to fair value estimate25% · price below our base caseTop 32%of 1,507
- Dividends + buybacks yield4.9% · cash paid out or used to retire shares, vs market capTop 27%of 2,227
- Revenue growth, last 12 months+22% · vs the 12 months beforeTop 22%of 2,184
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $56.96 · MV $45.02
Financials model (residual income): book value $54.50 a share on Jun 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 9.9%, the average of 8.7% for the trailing 12 months to Jun 30, 2026 and 11.1% over fiscal 2021–2025, on average common equity; payout 47% of earnings (dividends 47%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Aug 4, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur residual-income fair value estimate is $56.96, 25% above the price.
GrowthDiluted EPS grew 55% to $4.05 in FY2025.
GrowthSales grew 22% to $3.3B over the last 12 months vs the 12 months before (SEC filings).
Cash returnsDividend yield of 4.5% ($63M paid over 12 months, 47% of earnings).
ValuationPrice / book of 0.8×, below the 1.6× median for the 368 Finance companies we cover.
Top bearish points 5 of 5
Cash returnsShare count up 8.9% in a year: existing holders are being diluted.
GrowthSales fell 1.6% a year over the last three fiscal years, below the 9.2% median for the 356 Finance companies we cover.
ProfitabilityNet margin of 4.1%, below the 22% median for the 350 Finance companies we cover.
ProfitabilityReturn on equity of 8.7%, below the 12% median for the 363 Finance companies we cover.
QualityDoesn’t pass our quality screen: no cash-flow data; ROE under 12% and ROIC under 10%.
All fundamentals
P/E 10.4 · ROE 9% · Sales +22%
Valuation
- P/E
- 10.4×Finance median 13.3×
- Price / FCF
- n/acash flow isn't a clean measure for an insurer
- FCF yield
- n/acash flow isn't a clean measure for an insurer
- EV / EBITDA
- n/anot meaningful for an insurer
- Price / sales
- 0.43×
- Price / book
- 0.84×
- Market cap
- $1.4Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $3.3B
- Sales growth, 12 months
- +22.5%vs the 12 months before
- Sales growth, 3 yrs
- −1.6%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.57
- EPS growth, last FY
- +55.2%
- Net income, 12 months
- $135M
- Net income growth
- +53%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for an insurer
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 4.1%
- FCF margin
- 4.6%
- Return on equity
- 9%
- Return on invested capital
- n/anot meaningful for an insurer
Balance sheet
- Cash & short-term inv.
- $309M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/anot meaningful for an insurer
- Debt / equity
- n/adeposits/float make debt/equity not comparable for an insurer
- Interest coverage
- n/anot meaningful for an insurer
Cash flow & returns
- Free cash flow, 12 months
- $150M
- FCF growth, 12 months
- +26%
- Dividend yield
- 4.54%$63M paid
- Payout ratio
- 47%
- Buybacks, 12 months
- $6M0.4% of market cap
- Share count, 1 year
- +8.9%diluted shares vs a year ago
- Stock-based comp
- $18M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Stewart Information Services’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
Sales +13%
- Gross margin62%
- Operating margin6%
- Return on invested capital7%
- Return on equity9%
- Sales growth (latest quarter vs year-ago quarter)+13%
- Net debt / EBITDA2.1×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $45.73
- 52-wk lowlowest close, 1 year$42.96−6.1%
- Market Valueavg paid since Oct 21$45.02−1.6%
- PriceMon Nov 2 close$45.73you are here
- Fair value est.base case$56.96+24.6%
- 52-wk highhighest close, 1 year$77.17+68.8%
Momentum & 52-week range
RSI 34 · 5 days +6.4%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
STC is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Stewart Information Services in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 5:14 PM ET.
Compare with peers
Closest in size in Specialty Insurers
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.