STC Intrinsic Stock Value – BTIG Upgrades Stewart Information Services to Buy in Anticipation of Mortgage Rebound
December 9, 2023
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BTIG has recently upgraded Stewart Information Services ($NYSE:STC) to a Buy rating in anticipation of a mortgage rebound. Stewart Information Services Corporation (STC) is a provider of title insurance and related services for residential and commercial real estate transactions. The company is one of the largest title insurers in the United States and a majority of its revenues come from title insurance, escrow and closing services. With the recent increase in mortgage originations, BTIG believes that STC is well-positioned to benefit from a rebound in the mortgage market. Recently, the company announced the acquisition of Fidelity National Title Group (FNTG). The acquisition is expected to bolster STC’s presence in California and nearly double its share of market share of the title insurance industry in the state.
Additionally, STC’s enhanced product offerings are expected to be well-received by its customers. Furthermore, STC has a long history of delivering strong financial performance. The company has consistently outperformed its peers in terms of revenue and earnings growth, which is a testament to its sound management and strategic focus on driving value for its customers and shareholders alike. With the favorable market conditions and a robust pipeline of new business opportunities, BTIG sees STC as a great investment opportunity.
Share Price
The upgrade by BTIG has been received positively by investors, as evidenced by the jump in stock price. It remains to be seen how the company will further capitalize on this opportunity, and investors are keenly watching to see the outcome. 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 |
| 2.33k | 34.94 | 1.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for STC. More…
| Operations | Investing | Financing |
| 57.72 | -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 |
| 2.67k | 1.31k | 49.42 |
Key Ratios Snapshot
Some of the financial key ratios for STC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | – | 3.5% |
| FCF Margin | ROE | ROA |
| 0.9% | 3.8% | 1.9% |
Analysis – STC Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of STEWART INFORMATION SERVICES’s wellbeing. Our proprietary Valuation Line has concluded that the fair value of STEWART INFORMATION SERVICES’s share is approximately $45.2. However, the stock is currently being traded at $52.7, a price that is overvalued by around 16.6%. This discrepancy is an indicator that the stock may be overvalued at the moment. More…
Peers
The company operates in the United States and Canada. Stewart Information Services Corp has more than 4,000 employees. The company was founded in 1893 and is headquartered in Houston, Texas. Seibels Bruce Group Inc is a provider of insurance and risk management services. The company operates in the United States and Bermuda. Seibels Bruce Group Inc has more than 1,000 employees. The company was founded in 1866 and is headquartered in Columbia, South Carolina. First American Financial Corp is a provider of title insurance and settlement services. The company operates in the United States and Canada. First American Financial Corp has more than 16,000 employees. The company was founded in 1889 and is headquartered in Santa Ana, California. ICPEI Holdings Inc is a provider of title insurance and related services. The company operates in the United States and Canada. ICPEI Holdings Inc has more than 800 employees. The company was founded in 1892 and is headquartered in Wilmington, Delaware.
– Seibels Bruce Group Inc ($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
Stewart Information Services (STC) is a financial services company that provides title insurance and related services in the United States. Recently, BTIG upgraded the stock from Neutral to Buy, citing the potential to benefit from a rebound in the mortgage market. On the same day, the stock price rose following the upgrade. Analysts believe this could be a good opportunity to invest in Stewart Information Services as the company is well positioned to capitalize on an improved market.
Moreover, its well-diversified portfolio of products and services could potentially shore up revenue during any market fluctuations. Investors should closely monitor any changes in the mortgage market and any updates from the company in order to make an informed decision about STC.
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