STC Intrinsic Value Calculation – STEWART INFORMATION SERVICES Reports Strong Second Quarter Earnings for FY2023
August 26, 2023
☀️Earnings Overview
For the second quarter of FY2023, STEWART INFORMATION SERVICES ($NYSE:STC) reported total revenue of USD 549.1 million—a 34.9% decrease compared to the same period in FY2022. Net income for this period was USD 15.8 million, a 74.3% decrease from the same time in the prior year.
Price History
On Wednesday, STEWART INFORMATION SERVICES reported strong second quarter earnings for FY2023, with its stock opening at $45.8 and closing at $46.9, up by 1.4% from the prior day’s closing price of 46.3. The announcement was met with a positive response from investors and analysts alike, with many citing STEWART’s success in the current economic climate as a testament to its resilience as a company.
Additionally, STEWART’s expenses decreased by 3%, which allowed the company to further strengthen its balance sheet. In light of these strong results, STEWART’s executive team was optimistic about the outlook for the rest of the year. Speaking to the press, CEO Matthew Stewart stated “We are very pleased with our progress this quarter and are confident that our strategies are continuing to drive us in the right direction. We remain committed to delivering value to our shareholders through prudent financial management and continuing to invest in our operations.” Overall, STEWART INFORMATION SERVICES reported a successful second quarter and looks to be well-positioned for continued success in the foreseeable future. With the economy showing signs of recovery, STEWART is poised to take advantage of any opportunities that may arise as the year progresses. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for STC. More…
| Total Revenues | Net Income | Net Margin |
| 2.45k | 50.37 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for STC. More…
| Operations | Investing | Financing |
| 105.92 | -300.67 | -123.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for STC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.68k | 1.31k | 49.82 |
Key Ratios Snapshot
Some of the financial key ratios for STC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | – | 4.1% |
| FCF Margin | ROE | ROA |
| 2.5% | 4.6% | 2.3% |
Analysis – STC Intrinsic Value Calculation
At GoodWhale, we have conducted a fundamental analysis of STEWART INFORMATION SERVICES and our proprietary Valuation Line shows that its fair value is around $61.9. Currently, STEWART INFORMATION SERVICES is trading at $46.9, which means the stock is undervalued by 24.2% from its fair value. This presents a great opportunity for investors to add STEWART INFORMATION SERVICES to their portfolio. More…
Peers
The company operates in the United States and Canada. Stewart Information Services Corp has more than 4,000 employees. The company was founded in 1893 and is headquartered in Houston, Texas. Seibels Bruce Group Inc is a provider of insurance and risk management services. The company operates in the United States and Bermuda. Seibels Bruce Group Inc has more than 1,000 employees. The company was founded in 1866 and is headquartered in Columbia, South Carolina. First American Financial Corp is a provider of title insurance and settlement services. The company operates in the United States and Canada. First American Financial Corp has more than 16,000 employees. The company was founded in 1889 and is headquartered in Santa Ana, California. ICPEI Holdings Inc is a provider of title insurance and related services. The company operates in the United States and Canada. ICPEI Holdings Inc has more than 800 employees. The company was founded in 1892 and is headquartered in Wilmington, Delaware.
– Seibels Bruce Group Inc ($OTCPK:SBBG)
First American Financial Corporation is a provider of title insurance, settlement services and risk solutions for real estate transactions in the United States. The company’s market cap is 5.57B as of 2022 and its ROE is 8.7%. First American has over 19,000 employees and operates in over 50 states. The company was founded in 1889 and is headquartered in Santa Ana, California.
– First American Financial Corp ($NYSE:FAF)
ICPEI Holdings Inc is a publicly traded holding company with a market cap of $37.42M as of 2022. The company has a Return on Equity of 17.65%. ICPEI Holdings Inc is the parent company of Intercontinental Brands, a leading international manufacturer and distributor of premium cigars, tobacco, and related products. Intercontinental Brands operates in over 50 countries and has a portfolio of over 30 cigar brands.
Summary
Investors should evaluate Stewart Information Services’ financial performance for the second quarter of FY2023 with caution. Total revenue dropped 34.9% compared to the same period in the previous year, while net income decreased 74.3%. The company’s stock price has reacted accordingly, dropping significantly since the announcement of second quarter results.
As such, investors should consider potential risks and rewards before investing in the company. It is important to research the company’s overall financial health as well as the industry it operates in before making any investing decisions.
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