Fundamentals snapshot
STC · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$42.96
52-week range
$42.73 - $78.61
Market cap
$1.31B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $582.36M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Stewart Information Services Corporation helps people buy and sell homes by making sure the property title (the legal right to own a property) is clear and by handling the paperwork for the sale. Most of their money comes from selling title insurance, which is like an extra layer of protection for homebuyers and lenders against any future legal claims on the property's ownership. This business matters because it provides a crucial service that makes real estate transactions smoother and safer for everyone involved.
Stewart Information Services Corporation has a long history, dating back to 1893 when it was founded as Stewart Law & Land Title Office in Galveston, Texas. Initially focused on issuing abstracts, the company soon began offering title insurance, which protects against financial loss from defects in a property's title. Over the decades, it grew from a Texas-based operation into a national title insurance and real estate services company. In 1970, Stewart Information Services Corporation was formed as a holding company, and it went public in 1972. The company has since expanded its services and geographic reach, becoming a significant player in the global title insurance and real estate services market.
At its core, Stewart Information Services Corporation helps make real estate transactions safe and secure. When someone buys or sells property, or when a mortgage is involved, there's a need to ensure the seller legally owns the property and that there are no hidden claims or debts against it. Stewart's main job is to investigate the property's history (this is called 'searching and examining the title') and then provide insurance (title insurance) that protects the buyer and lender against any future claims that might arise from past issues with the title. They also offer services to manage the closing process, where all the paperwork is signed and the property officially changes hands.
This is Stewart's primary business. When you buy a home, you typically get a title insurance policy. This policy is like a guarantee that the seller has the legal right to sell you the property and that there are no outstanding liens (like unpaid mortgages or taxes) or other claims against it that could cause you to lose ownership. Stewart's 'title insurance and related services' segment handles the crucial steps of searching property records to uncover any potential issues, managing the closing process where ownership is transferred, and issuing these title insurance policies. This segment is the largest part of Stewart's business, generating the majority of its revenue.
Beyond just title insurance, Stewart offers a range of services that support the broader real estate and mortgage industries. Think of these as helpful tools and services that make the entire process of buying, selling, or financing a property smoother. This segment includes things like appraisal management services (which involve determining a property's value), online notarization and closing services (making it easier to sign documents remotely), credit and real estate information services (providing data to lenders and professionals), and search and valuation services. These services are often used by mortgage lenders, real estate professionals, and others involved in property transactions.
Stewart's current strategy focuses on strengthening its core title insurance business while also making its operations more efficient and technologically advanced. Management is prioritizing growth in attractive real estate markets where they can establish a strong presence. They are also investing in building out their real estate services to offer a more comprehensive suite of solutions to customers, aiming to enhance their value proposition. A key part of this is embracing technology to streamline processes, improve customer engagement, and adapt to the evolving needs of the real estate and mortgage industries.
Price history
Earnings history
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Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $582.4M. Interest coverage 9.1x.
Stewart Information Services Corporation's profit covers its interest bill about 9.1 times over. which is stronger than most peers shown here.
Total debt $788.33M Interest coverage 9.10x This is the baseline the peer rows are being compared against.
Total debt $2.55B Interest coverage 6.26x -31% vs STC Carries about 1.5x less debt cushion than STC.
Total debt $4.78B Interest coverage 6.77x -26% vs STC Carries about 1.3x less debt cushion than STC.
Total debt $1.75B Interest coverage 17.84x +96% vs STC Carries about 2.0x more debt cushion than STC.
What you should know
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What you should know