Stewart Information Services (STC) Fundamental Analysis: Revenue, Earnings & Valuation

7.09 / 10

Outperform

STC's fundamental analysis scores 7.1/10, reflecting a solid financial framework. Key positives include a healthy fixed assets turnover ratio of 7.9821 (Q1, score 3) and a robust shareholders' equity growth rate of 5.0834% (Group 3, score 3). However, the cost of sales ratio at 70.5303% falls into Group 1 with a lower score of 2, indicating room for improvement in cost control. Overall, the fundamentals provide a good base but are not without weaknesses.

Analysis Checks(10/10)

Operating cycle

Value11.14

Score2/3

Weight3.55%

1M Return1.33%

Non-current assets / Total assets (%)

Value85.42

Score2/3

Weight4.57%

1M Return1.68%

Quick ratio

Value2.20

Score2/3

Weight0.73%

1M Return0.27%

Non-current liabilities / Total liabilities (%)

Value82.81

Score2/3

Weight2.30%

1M Return0.85%

Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)

Value5.08

Score3/3

Weight17.32%

1M Return5.87%

Net profit margin (%)

Value4.19

Score3/3

Weight22.06%

1M Return7.25%

Fixed assets turnover ratio

Value7.98

Score3/3

Weight20.76%

1M Return6.91%

Cost of sales ratio (%)

Value70.53

Score2/3

Weight0.89%

1M Return0.33%

Current assets / Total assets (%)

Value14.58

Score3/3

Weight20.66%

1M Return7.04%

Current ratio

Value1.77

Score2/3

Weight7.15%

1M Return2.48%

Is STC undervalued or overvalued?

STC scores 7.09/10 on fundamentals and holds a Discounted valuation at present. Backed by its 5.48% ROE, 4.16% net margin, 24.58 P/E ratio, 1.46 P/B ratio, and 69.44% earnings growth, these metrics solidify its Outperform investment rating.