State Street Intrinsic Value – STATE STREET Reports Second Quarter FY2023 Earnings Results on July 14
July 16, 2023
🌥️Earnings Overview
On July 14 2023, STATE STREET ($NYSE:STT) reported their financial results for the quarter ending June 30 2023, revealing a 5.3% year-on-year rise in total revenue to USD 3110.0 million and a 2.1% increase in net income to USD 763.0 million.
Stock Price
The stock opened at $75.0, but closed the day plummeting by 12.1%, ending at $68.1. This was a significant fall from its previous closing price of $77.5. Investors reacted negatively to the earnings results, which had been lower than expected. The news sent shockwaves through the stock market and was the cause of the drop in STATE STREET’s stock price. 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
At GoodWhale, we have closely examined the financials of STATE STREET. After careful analysis of the data, we have determined that the fair value of their stock is around $86.2. This result was calculated using our proprietary Valuation Line. Currently, STATE STREET is trading at $68.1, which puts the stock at 21.0% undervalued. We strongly suggest that investors take advantage of this potential upside and consider adding STATE STREET to their portfolio. More…
Peers
State Street Corporation is one of the largest financial services companies in the world, and it faces strong competition from several well-established competitors such as DWS Group GmbH & Co KGaA, CI Financial Corp, and Bank of New York Mellon Corp. All of these companies are fiercely competitive in the financial services industry, and offer a wide range of products and services to their customers. Despite the fierce competition, State Street Corporation remains a leader in the industry, offering innovative solutions and superior customer service.
– DWS Group GmbH & Co KGaA ($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
Investors in State Street Corporation have cause to be cautious after the company reported its second quarter earnings results for FY2023. Despite total revenue increasing by 5.3% compared to the same period a year ago, net income was only up 2.1%. The stock price responded negatively on the news, making investors question if the company can sustain this performance in the face of a challenging economic environment. Investors should continue to monitor State Street’s progress to ensure their portfolios are properly diversified.
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