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1. Company Snapshot

1.a. Company Description

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services.The company operates in two segments, Title, and Ancillary Services and Corporate.The Title segment is involved in searching, examining, closing, and insuring the condition of the title to real property.


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.The company offers its products and services through its directly owned policy-issuing offices, network of independent agencies, and other businesses within the company.


It serves homebuyers and sellers, residential and commercial real estate professionals, title agencies, real estate attorneys and investors, and home builders, as well as mortgage lenders, servicers, brokers, and investors.The company operates in the United States, Canada, the United Kingdom, and Australia.Stewart Information Services Corporation was founded in 1893 and is headquartered in Houston, Texas.

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1.b. Last Insights on STC

Recent drivers behind Stewart Information Services Corporation's performance include: * Strong Q3 2024 earnings, with total revenues of $667.9 million and net income of $30.1 million, compared to $601.7 million and $14.0 million in the prior year quarter. * Adjusted net income was $33.1 million, a 40% increase from the prior year quarter. * The company's CEO, Frederick Eppinger, has had his employment agreement extended for another three years through the end of 2028. * The promotion of Wilhelmina Kightlinger to Chief Underwriting Counsel is expected to strengthen the company's corporate underwriting capacity and grow its footprint in underrepresented markets. * The company has declared a cash dividend of $0.50 per share for the fourth quarter 2024, payable December 30, 2024, to common stockholders of record on December 16, 2024.

1.c. Company Highlights

2. Stewart's Q3 2025 Earnings: A Strong Beat

Stewart's third-quarter 2025 financial performance was impressive, with revenues growing 19% to $797 million and adjusted earnings per share (EPS) rising 40% to $1.64, significantly beating estimates of $1.33. The strong EPS was driven by robust growth in both the direct operations and Agency Services businesses. The company's Title segment operating revenues grew $107 million or 19%, driven by improved direct and agency title operations, resulting in adjusted title pretax income of $61 million, a 40% increase from the prior year quarter.

Publication Date: Nov -23

📋 Highlights
  • Revenue & EPS Growth:: Revenue surged 19% to $797 million, with adjusted EPS rising 40% to $1.64.
  • Direct Operations Growth:: Direct unit revenue increased 8%, while commercial transactions in direct operations jumped 18%.
  • Agency Services Expansion:: Agency Services revenue grew 28% YoY, driven by share gains and agent onboarding.
  • Commercial Market Penetration:: Domestic commercial revenues rose 33% year-to-date, led by energy, data centers, and hospitality.
  • Financial Strength:: Net cash from operations improved 22% to $17 million, with stockholders’ equity at $1.5 billion and a $300M credit facility.

Business Segment Performance

The direct operations unit grew 8% in the third quarter, with solid progress in targeting metropolitan statistical areas (MSAs) and micro markets. The National Commercial Services business delivered another solid quarter of growth, driven by increased penetration in geographic markets and asset classes. The Agency Services business had a strong quarter, with revenues up 28% year-over-year, driven by share gains in attractive states, onboarding new agents, and wallet share expansion with existing agents. As Frederick Eppinger noted, "We're seeing pretty good share shift in the res side, particularly within the 15 states we're focused on."

Valuation and Outlook

With a Price-to-Sales Ratio of 0.75, the market appears to be pricing in moderate growth expectations. However, with analysts estimating revenue growth of 10.7% next year and the company's strong track record of beating estimates, there may be upside potential. Additionally, the Dividend Yield of 2.72% provides a relatively attractive return for investors. Given the company's momentum and the challenging housing market, Stewart's ability to grow revenues by 19% and adjusted EPS by 40% is a testament to its strong business model and execution.

Financial Position

Stewart's financial position remains solid, with total stockholders' equity at September 30, 2025, of approximately $1.5 billion and a book value of $52.58 per share. The company recently renewed and upsized its line of credit facility by $100 million to $300 million, providing additional financial flexibility. Net cash provided by operations improved by $17 million or 22% compared to last year, demonstrating the company's ability to generate cash from its operations.

3. NewsRoom

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HCI Group (NYSE:HCI) vs. Stewart Information Services (NYSE:STC) Financial Contrast

Dec -02

Source: defenseworld.net

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STEWART INFORMATION SERVICES CORPORATION DECLARES FOURTH QUARTER DIVIDEND

Dec -01

Source: prnewswire.com

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Reviewing Donegal Group (NASDAQ:DGICA) and Stewart Information Services (NYSE:STC)

Nov -18

Source: defenseworld.net

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Stewart Information Services Corporation $STC Shares Bought by Envestnet Asset Management Inc.

Nov -11

Source: defenseworld.net

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Sangoma Technologies Corporation (STC:CA) Q1 2026 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Stewart Strengthens Real Estate Services Portfolio by Announcing its Intent to Acquire Mortgage Contracting Services (MCS)

Nov -07

Source: businesswire.com

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Wealth Firm Trims Stewart Stake by $3 Million amid Strong Quarter but Keeps a Foot in Real Estate

Nov -02

Source: fool.com

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Stewart Information Services Corporation (STC) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.24%)

6. Segments

Title

Expected Growth: 10%

Stewart Information Services Corporation's 10% growth is driven by increasing demand for title insurance and settlement services, fueled by a strong housing market, low interest rates, and government policies supporting homeownership. Additionally, the company's expansion into adjacent markets, such as mortgage services and digital transformation initiatives, contribute to its growth momentum.

Real Estate Solutions

Expected Growth: 12%

Stewart Information Services Corporation's 12% growth in Real Estate Solutions is driven by increasing demand for title insurance and settlement services, fueled by low interest rates, government-backed mortgage incentives, and a strong housing market. Additionally, the company's investments in digital transformation, expansion into new markets, and strategic acquisitions have enhanced its competitive position and contributed to its growth momentum.

Corporate and Other Segment

Expected Growth: 11%

Stewart Information Services Corporation's Corporate and Other Segment growth of 11% is driven by increased demand for title insurance and settlement services, expansion into new markets, and strategic acquisitions. Additionally, cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Title Insurance

Stewart Information Services Corporation provides title insurance policies that protect buyers and lenders from losses due to defects in title, ensuring a clear ownership of the property.

Escrow and Settlement Services

Stewart offers escrow and settlement services, facilitating the transfer of ownership and ensuring a smooth transaction process.

Appraisal and Valuation Services

Stewart provides appraisal and valuation services, offering accurate and reliable property valuations for lenders, investors, and homeowners.

Default Services

Stewart offers default services, including foreclosure processing, REO management, and loss mitigation, to help lenders manage distressed assets.

Search and Examination Services

Stewart provides search and examination services, conducting thorough searches of public records to identify potential title issues.

Recording and Document Services

Stewart offers recording and document services, preparing and recording legal documents, such as deeds and mortgages.

8. Stewart Information Services Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Stewart Information Services Corporation is moderate, as there are alternative title insurance and settlement services providers in the market.

Bargaining Power Of Customers

The bargaining power of customers for Stewart Information Services Corporation is low, as the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Stewart Information Services Corporation is low, as the company has a diverse supplier base and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants for Stewart Information Services Corporation is low, as the company operates in a highly regulated industry with significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Stewart Information Services Corporation is high, as the company operates in a competitive industry with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.70%
Debt Cost 4.53%
Equity Weight 60.30%
Equity Cost 9.84%
WACC 7.73%
Leverage 65.83%

11. Quality Control: Stewart Information Services Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.24$

Current Price

77.24$

Potential

-0.00%

Expected Cash-Flows