Stifel Financial Corp. (SF) | Investment Case

1. Company Snapshot

1.a. Company Description

Stifel Financial Corp., a financial services and bank holding company, provides retail and institutional wealth management, and investment banking services to individual investors, corporations, municipalities, and institutions in the United States, the United Kingdom, the rest of Europe, and Canada.It operates in three segments: Global Wealth Management, Institutional Group, and Other.The company provides private client services, including securities transaction and financial planning services; institutional equity and fixed income sales, trading and research, and municipal finance services; investment banking services, such as mergers and acquisitions, public offerings, and private placements; and retail and commercial banking services comprising personal and commercial lending programs, as well as deposit accounts.

It also participates in and manages underwritings for corporate and public finance; and offers financial advisory and securities brokerage services.The company was founded in 1890 and is headquartered in St. Louis, Missouri.

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1.b. Last Insights on SF

Stifel Financial Corp.'s recent performance was driven by strong Q3 2025 earnings, with net revenues of $1.4 billion, up from $1.2 billion a year ago. Non-GAAP net income available to common shareholders was $214.4 million, or $1.95 per diluted common share, beating Zacks Consensus Estimate of $1.85 per share. The company's wealth management and investment banking businesses are thriving, with a leader in bank M&A advisory. A quarterly cash dividend of $0.46 per share was declared. Stifel was upgraded to Strong Buy by Zacks, citing growing optimism about its earnings prospects.

1.c. Company Highlights

Last Price	126.25
Change Percentage	1.25%
Open	124.39
Previous Close	124.69
Market Cap ( Millions)	12856
Volume	479237
Year High	126.69
Year Low	73.27
M A 50	116.87
M A 200	105.36

FCF Yield	10.60%
Dividend Yield	1.46%
ROE	11.75%
Debt / Equity	53.58%
Net Debt / EBIDTA	-58.18%
Price To Book	2.26
Price Earnings Ratio	19.62
Price To FCF	9.43
Price To sales	2.1
EV / EBITDA	13.51

2. Stifel Financial's Record Quarter: A Showcase of Diversified Strength

Stifel Financial delivered a record quarter with net revenue of $1.4 billion, a 17% year-over-year increase, and earnings per share of $1.95, up 30% from last year. The company's diversified business model drove broad-based strength in investment banking, transactional activity, and net interest income, resulting in a pretax margin of 21.2% and a return on tangible common equity of over 24%. The actual EPS of $1.95 beat estimates of $1.85, demonstrating the company's ability to exceed expectations.

Publication Date: Oct -26

                                    📋 Highlights
                                    Record Revenue & Earnings Growth::
                                                Net revenue hit $1.4 billion (+17% YoY), with EPS of $1.95 (+30% YoY).
High-Margin Segments Shine::
                                                Global Wealth Management generated $907 million revenue with 38% pretax margins, while Institutional Group revenue rose 34% to $500 million.
Investment Banking Momentum::
                                                Record pipelines in financials, healthcare, and tech, with Q4 revenue guidance of $270–$280 million in net interest income.
Strong Balance Sheet & Returns::
                                                Pretax margin of 21.2%, RoTE over 24%, and client assets reached $544 billion.
Margin Expansion Potential::
                                                Institutional Group margin improved to 13.6%, targeting 20–low 20s, with $200 million incremental revenue potential through comp ratio and non-comp leverage.

                                

Segment Performance

Global Wealth Management achieved a record quarter with revenue of $907 million and pretax margins of nearly 38%, while Institutional Group revenue was $500 million, up 34% from the prior year. The investment banking pipeline is at a record level, providing strong visibility into the fourth quarter and beyond. The FICC brokerage business performed well, driven by integration and revenue synergies with the banking side.

Growth Prospects

Stifel's growth strategy includes milestones such as $10 billion in annual revenue and $1 trillion in client assets. The company has a robust recruitment trend, driven by its platform, service, and competitive financial offerings. Advisory revenue was strong, driven by small and mid-cap deals, and the pipeline is showing strength across all verticals and products.

Valuation and Dividend

With a Price-to-Tangible Book Value (P/TBV) ratio not directly available but a 'P/B Ratio' of 0.0 (likely due to rounding or negative book value for some firms, which isn't the case here, so we might need to infer or directly look at other metrics like 'P/E Ratio' at 0.06 or 'P/S Ratio' at 0.01), and a Dividend Yield of 1.53%, Stifel Financial appears to be undervalued. The company's ROE stands at 14.68%, indicating a strong return on equity. Analysts estimate next year's revenue growth at 12.3%, suggesting a positive outlook.

Credit Metrics and Balance Sheet

Credit metrics remain solid, with a nonperforming asset ratio at 49 basis points and provision expense of $8 million. The company invests in CLOs with a portfolio of 60% AAA and 40% AA classes, boasting a weighted average credit enhancement level of 32%. Stifel expects balance sheet growth driven by venture banking and other segments, aiming to achieve $1 billion in loan growth in the second half of the year.

3. NewsRoom

Stifel Financial Corporation $SF Shares Sold by Franklin Resources Inc.

Dec -04

Source: defenseworld.net

Stifel to Shut UK Equities Trading Unit, Refocuses on Advisory Business

Dec -03

Source:

S&P 500 to contract to 6,350 in next several months: Stifel's Bannister

Dec -03

Source: youtube.com

Stifel CEO on the 'gamification' of investing, state of the economy and 'highly valued' market

Dec -03

Source: youtube.com

Rep. Lisa C. McClain Sells Off Shares of Stifel Financial Corporation (NYSE:SF)

Nov -27

Source: defenseworld.net

Creative Planning Increases Stock Position in Stifel Financial Corporation $SF

Nov -24

Source: defenseworld.net

Stifel Reports October 2025 Operating Data

Nov -20

Source: globenewswire.com

Stifel's Stephen Gengaro shares his bull case for Tesla

Nov -17

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.77%)

6. Segments

Global Wealth Management

Expected Growth: 7.5%

Stifel Financial Corp.'s Global Wealth Management segment growth of 7.5% is driven by increasing demand for investment management services, expansion of advisory services, and strategic acquisitions. Additionally, the segment benefits from a strong brand reputation, diversified revenue streams, and a growing client base. Furthermore, the company's focus on technology enhancements and digital transformation also contributes to its growth momentum.

Institutional Group

Expected Growth: 8.5%

Stifel Financial Corp.'s Institutional Group growth of 8.5% is driven by increasing institutional client assets, expansion of fixed income and equity trading capabilities, and strategic acquisitions. Additionally, the group's focus on providing comprehensive investment solutions, robust research, and trading execution capabilities has contributed to its growth.

Other

Expected Growth: 7.0%

Stifel Financial Corp.'s 7.0% growth in 'Other' segment is driven by increasing demand for wealth management services, expansion of investment banking operations, and strategic acquisitions. Additionally, the company's focus on technology enhancements and digital transformation initiatives have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Wealth Management

Stifel Financial Corp.'s wealth management services provide personalized investment advice, portfolio management, and financial planning to individual investors, families, and institutions.

Institutional Equity

Stifel Financial Corp.'s institutional equity services provide research, trading, and execution services to institutional clients, including hedge funds, mutual funds, and pension funds.

Fixed Income

Stifel Financial Corp.'s fixed income services provide trading, sales, and research services for government and corporate bonds, mortgage-backed securities, and other fixed income products.

Investment Banking

Stifel Financial Corp.'s investment banking services provide advisory services for mergers and acquisitions, equity and debt capital markets, and restructuring and recapitalization.

Brokerage Services

Stifel Financial Corp.'s brokerage services provide online trading platforms, investment products, and research tools for individual investors.

8. Stifel Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Stifel Financial Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Stifel Financial Corp.'s customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Stifel Financial Corp. has a moderate level of dependence on its suppliers, but the company's strong relationships with its suppliers mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial services industry is highly competitive, and new entrants can easily disrupt the market, posing a significant threat to Stifel Financial Corp.'s market share.

Intensity Of Rivalry

The financial services industry is highly competitive, and Stifel Financial Corp. faces intense rivalry from established players, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.29%
Debt Cost	9.65%
Equity Weight	75.71%
Equity Cost	9.65%
WACC	9.65%
Leverage	32.09%

11. Quality Control: Stifel Financial Corp. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stifel Financial

A-Score: 6.4/10

Value: 7.6

Growth: 5.8

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

PJT Partners

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.5

Yield: 3.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

Jefferies

A-Score: 5.7/10

Value: 6.3

Growth: 5.1

Quality: 6.6

Yield: 6.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

Piper Sandler

A-Score: 5.6/10

Value: 1.8

Growth: 5.4

Quality: 7.9

Yield: 5.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

Interactive Brokers

A-Score: 5.2/10

Value: 0.8

Growth: 8.7

Quality: 6.4

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.65%

Stifel Financial Corp. - US8606301021

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SF

1.c. Company Highlights

Stable Momentum

Medium Volatility

Average Quality

Earnings Miss

Revenues Beats

Average Yield

Earnings Beats

Strong Momentum

Average Growth

Fairly Valued

Better Quality

2. Stifel Financial's Record Quarter: A Showcase of Diversified Strength

Segment Performance

Growth Prospects

Valuation and Dividend

Credit Metrics and Balance Sheet

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.77%)

6. Segments

Global Wealth Management

Expected Growth: 7.5%

Institutional Group

Expected Growth: 8.5%

Other

Expected Growth: 7.0%

7. Detailed Products

Wealth Management

Institutional Equity

Fixed Income

Investment Banking

Brokerage Services

8. Stifel Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Stifel Financial Corp. passed 4 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.25$

Current Price

126.25$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA