State Street Intrinsic Value Calculation – STATE STREET Reports Record Revenue and Net Income for 2nd Quarter of FY2023
July 26, 2023
🌥️Earnings Overview
For the second quarter of FY2023, State Street ($NYSE:STT) reported total revenue of USD 3110.0 million, a 5.3% increase from the same period in the previous year, and a net income of USD 763.0 million, an increase of 2.1% from the same quarter of the previous year, ending on June 30 2023.
Price History
However, despite the positive news, the company’s stock plummeted by 12.1% from its prior closing price of 77.5 to 68.1. This represents a dramatic shift in STATE STREET’s stock trajectory, as it opened the day at $75.0. Analysts attribute the sudden decrease to investor uncertainty about the company’s long-term prospects and plans for future growth. The drop in stock price is an indication that investors are hesitant to invest in the company right now, despite the successful quarter.
In response to the drop in stock prices, STATE STREET is reassessing its short-term strategy and focusing on ways to regain investor confidence. The company is actively working on initiatives that will strengthen its long-term outlook and show investors that it is a secure investment opportunity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for State Street. More…
| Total Revenues | Net Income | Net Margin |
| 12.3k | 2.62k | 22.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for State Street. More…
| Operations | Investing | Financing |
| 4.51k | 6.82k | -18.43k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for State Street. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 294.56k | 270.36k | 72.41 |
Key Ratios Snapshot
Some of the financial key ratios for State Street are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.0% | – | – |
| FCF Margin | ROE | ROA |
| 30.3% | 8.5% | 0.7% |
Analysis – State Street Intrinsic Value Calculation
At GoodWhale, we have performed our proprietary Valuation Line analysis on STATE STREET. Our analysis has determined that the intrinsic value of a STATE STREET share is around $86.2. However, the current market value of a STATE STREET share is $68.1, representing a 21.0% undervaluation. This presents a great opportunity for investors looking to enter the market and benefit from the discrepancy between the intrinsic and market values. More…
Peers
State Street Corporation is one of the largest financial services companies in the world, and it faces strong competition from several well-established competitors such as DWS Group GmbH & Co KGaA, CI Financial Corp, and Bank of New York Mellon Corp. All of these companies are fiercely competitive in the financial services industry, and offer a wide range of products and services to their customers. Despite the fierce competition, State Street Corporation remains a leader in the industry, offering innovative solutions and superior customer service.
– DWS Group GmbH & Co KGaA ($BER:DWS)
DWS Group GmbH & Co KGaA is a global asset management company with headquarters in Frankfurt, Germany. It provides a comprehensive range of services to both institutional and private investors. As of 2022, the company has a market capitalization of 6.26 billion euros. This is an indication of the size and financial strength of the company. The company also boasts an impressive return on equity of 8.89%. This indicates that the company has been successful in utilizing its resources and generating profits for its shareholders. DWS Group is committed to delivering innovative and sustainable investment solutions to its clients, always striving for excellence.
– CI Financial Corp ($TSX:CIX)
CI Financial Corp is a Canadian wealth management company providing financial services to investors and advisors. The company has a market capitalization of 2.48B in 2022, which indicates the overall size and value of the company. Additionally, its Return on Equity (ROE) of 28.09% indicates the company’s ability to generate profits from its shareholders’ investments. CI Financial Corp is committed to providing innovative and customized wealth solutions to its clients and advisors, as well as delivering superior returns to its shareholders.
– Bank of New York Mellon Corp ($NYSE:BK)
The Bank of New York Mellon Corp is a financial services company that provides services such as custody, asset management and securities lending for institutions, corporations and individuals. As of 2022, it has a market cap of 36.14B and a Return on Equity of 5.74%. The market cap indicates the total value of its outstanding shares and is a major indicator of its financial health. The Return on Equity ratio is a measure of the company’s ability to generate profits from its shareholders’ investments. This ratio is an important indicator of the company’s profitability and efficiency. Overall, the Bank of New York Mellon Corp is a solid financial services company with a strong market cap and ROE.
Summary
Despite the positive financial indicators, the stock price fell on the same day, suggesting that investors are not convinced of the company’s performance or outlook. Analysts should take this into consideration when making investing decisions related to State Street, as there may be other factors at play that could affect investors’ returns.
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