Stewart Information Services Co (STC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Stewart Information Services Co (STC) Financial Services Profile

Stewart Information Services Corporation, founded in 1893, provides title insurance and real estate transaction services across the United States, Canada, the United Kingdom, and Australia. Operating through its Title and Ancillary Services segments, the company supports homebuyers, sellers, and real estate professionals with comprehensive solutions and a network of independent agencies.

What Is the Investment Thesis for STC?

With a market capitalization of $2.03B and a P/E ratio of 14.50, the company demonstrates financial stability. A key value driver is the company's ability to capitalize on the increasing demand for digital solutions in real estate transactions. The dividend yield of 2.98% provides an attractive income stream for investors. However, potential investors may want to evaluate the cyclical nature of the real estate market as a risk factor. The company's beta of 1.04 indicates market correlation.

Based on FMP financials and quantitative analysis

STC Key Highlights

Market Cap of $2.03B indicates a strong market presence in the title insurance and real estate services sector.

• P/E ratio of 14.50 suggests a reasonable valuation compared to earnings.
• Gross Margin of 79.4% reflects efficient cost management and strong pricing power.
• Dividend Yield of 2.98% provides an attractive return for income-focused investors.
• Profit Margin of 4.2% demonstrates profitability, but indicates room for improvement compared to industry leaders.

Who Are STC's Competitors?

STC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are STC's Key Strengths?

Established market position in the title insurance industry.

• Extensive network of offices and agencies.
• Strong brand reputation.
• Diversified service offerings.

What Are STC's Weaknesses?

Exposure to cyclicality of the real estate market.

• Dependence on interest rates and housing market trends.
• Profit margin lower than some competitors.
• Limited international presence compared to some global players.

What Could Drive STC Stock Higher?

Increasing adoption of digital solutions in real estate transactions.

• Strategic acquisitions to expand geographic reach and service offerings.
• Potential for interest rate cuts to stimulate the housing market.
• Expansion of ancillary services to generate additional revenue streams.

What Are the Key Risks for STC?

Insider selling — insiders were net sellers of roughly $1.7M recently.

• Cyclicality of the real estate market.
• Rising interest rates could dampen housing market activity.
• Competition from other title insurance companies.
• Regulatory changes and compliance requirements.
• Cybersecurity risks and data breaches.

What Are the Growth Opportunities for STC?

• Expansion of Digital Services: Stewart Information Services can capitalize on the increasing demand for digital solutions in real estate transactions. By expanding its digital customer engagement platform and online notarization services, the company can attract a broader customer base and improve operational efficiency. The market for digital mortgage solutions is projected to reach $10 billion by 2028, presenting a significant growth opportunity.
• Strategic Acquisitions: Stewart Information Services can pursue strategic acquisitions to expand its geographic footprint and service offerings. Acquiring smaller title agencies and technology companies can provide access to new markets and innovative solutions. The company has a history of successful acquisitions, and further expansion through this strategy can drive revenue growth and market share gains.
• Increased Focus on Ancillary Services: The Ancillary Services segment, which includes appraisal management and credit information services, offers significant growth potential. By expanding its offerings in these areas, Stewart Information Services can generate additional revenue streams and diversify its business. The market for appraisal management services is expected to grow at a rate of 6% annually.
• Geographic Expansion: Stewart Information Services can expand its operations in international markets, particularly in Canada, the United Kingdom, and Australia. These markets offer attractive growth opportunities due to their stable real estate markets and increasing demand for title insurance services. The company's existing presence in these countries provides a solid foundation for further expansion.
• Partnerships and Alliances: Stewart Information Services can form strategic partnerships and alliances with real estate technology companies and mortgage lenders to expand its reach and enhance its service offerings. Collaborating with these companies can provide access to new customers and innovative solutions. The company can also partner with real estate agents and brokers to offer bundled services and improve customer satisfaction.

What Are STC's Competitive Advantages?

• Established brand reputation and long history in the title insurance industry.
• Extensive network of directly owned policy-issuing offices and independent agencies.
• Strong relationships with real estate professionals and mortgage lenders.
• Proprietary technology and digital solutions for real estate transactions.

What Does STC Do?

Stewart Information Services Corporation, established in 1893, has evolved into a leading provider of title insurance and real estate transaction services. Founded in Houston, Texas, the company initially focused on providing abstract services before expanding into title insurance. Over the years, Stewart Information Services has grown through strategic acquisitions and organic expansion, extending its reach across the United States, Canada, the United Kingdom, and Australia. The company operates through two primary segments: Title, and Ancillary Services and Corporate. The Title segment focuses on searching, examining, closing, and insuring the condition of real property titles. This segment also offers home and personal insurance services, services for tax-deferred exchanges, and digital customer engagement platform services. The Ancillary Services and Corporate segment provides appraisal management, online notarization and closing, credit and real estate information, and search and valuation services to the mortgage industry. Stewart Information Services serves a diverse clientele, including homebuyers and sellers, residential and commercial real estate professionals, title agencies, real estate attorneys and investors, home builders, mortgage lenders, servicers, brokers, and investors. The company distributes its products and services through directly owned policy-issuing offices and a network of independent agencies.

What Products and Services Does STC Offer?

• Provides title insurance to protect homebuyers and lenders from property ownership disputes.
• Offers real estate transaction services, including closing and escrow services.
• Conducts title searches and examinations to ensure clear property titles.
• Provides appraisal management services to mortgage lenders.
• Offers online notarization and closing services.
• Provides credit and real estate information services.
• Offers services for tax-deferred exchanges.

How Does STC Make Money?

• Generates revenue from title insurance premiums.
• Earns fees from real estate transaction services, such as closing and escrow services.
• Receives fees for appraisal management and credit information services.
• Generates revenue from digital customer engagement platform services.

What Industry Does STC Operate In?

Stewart Information Services Corporation operates within the property and casualty insurance industry, which is closely tied to the real estate market. The industry is influenced by factors such as interest rates, housing market trends, and regulatory changes. The market is competitive, with key players like PACS Group, Inc. and Aspen Insurance Holdings Ltd vying for market share. The increasing adoption of digital technologies and the growing demand for efficient real estate transaction processes are shaping the industry landscape. Stewart Information Services is positioned to benefit from these trends through its investments in digital solutions and customer engagement platforms.

Who Are STC's Key Customers?

• Homebuyers and sellers
• Residential and commercial real estate professionals
• Title agencies
• Real estate attorneys and investors
• Home builders
• Mortgage lenders, servicers, brokers, and investors

Company Profile

Stewart Information Services Co operates in the Insurance - Property & Casualty industry within the Financial Services sector. It is headquartered in Houston, US. The company is led by CEO Frederick Henry Eppinger Jr.. STC has traded publicly since 1973.

Stewart Information Services Co Financial Trajectory

Stewart Information Services Co (STC) reported $899.2M in revenue for Q2 FY2026, reflecting 15.1% growth compared to the prior quarter. The company recorded net income of $37.2M, with diluted EPS of $1.21. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, STC averaged $1.14 in diluted EPS.

How Stewart Information Services Co Is Valued

Stewart Information Services Co carries a market capitalization of $2.03B, placing it in the mid-cap category. Analyst price targets span from $87.00 to $87.00, with a consensus of $87.00. At the current price of $66.56, that implies approximately 31% upside potential. Relative to its peer group, STC's quantitative score of 66/100 is below the peer average of 84/100.

Return on equity for Stewart Information Services Co stands at 8.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.1%, showing how much profit it generates from its asset base. STC trades at a trailing price-to-earnings ratio of 14.50, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 7.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.68 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.5%, the inverse of the P/E and a quick read on earnings relative to price.

Stewart Information Services Co's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.36 places it in the grey zone, a middle ground that warrants monitoring.

Stewart Information Services Co has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 8.1% above estimates on average.

Over the past six months, Stewart Information Services Co insiders filed 86 SEC Form 4 transactions — 44 sales and 42 purchases. On net that is roughly 70K shares acquired (about $1.7M) — insiders putting money in tends to read as conviction.

STC Financials

STC Latest News

STC Analyst Consensus

STC MoonshotScore

STC Financial Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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