Download PDF

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.

Show Full description

1.b. Last Insights on SF

Stifel Financial Corp.'s recent performance faced challenges due to decelerating growth, with some analysts expecting a slowdown despite the company's strong Q1 2026 results, which included 15% year-over-year revenue growth and record wealth management performance. The company's investment banking pipeline and adviser recruitment are expected to drive growth, but a slump in March dealmaking activity may pose a challenge. Additionally, one of the biggest detractors to the Heartland Value Plus Fund's performance in Q1 was Stifel Financial, indicating potential concerns among investors.

1.c. Company Highlights

2. Stifel Q1 2026: Revenue Surge and Resilient Growth

Stifel delivered a robust Q1 2026 performance, posting net revenues of $1.48 billion—an 18% YoY increase—while earnings per share surged to $1.45 on a non‑GAAP basis, comfortably eclipsing analyst expectations of $1.39. The firm’s operating margin expanded to 13%, driven by record wealth‑management fees and a 29% lift in institutional investment banking revenue, as CFO Jim Marischen noted the firm’s strong capital cushion of nearly $560 million in excess capital.

Publication Date: Apr -23

📋 Highlights
  • Strong Q1 Net Revenues:: Reached $1.48 billion, a 18% YoY increase, with 15% growth excluding a nonrecurring gain.
  • Significant EPS Improvement:: GAAP EPS rose to $1.48 from $0.33 YoY, while non-GAAP EPS hit $1.45.
  • Record Institutional Revenue:: 29% YoY growth driven by investment banking performance exceeding expectations.
  • Robust Capital Position:: Tier 1 leverage ratio of 11.4% and $560 million in excess capital available for buybacks or M&A.
  • Global Wealth Management Growth:: Record asset management revenues and adviser productivity boosted net revenue to a first-quarter high.

Revenue Growth & Margin

Net revenue rose 15% excluding the nonrecurring sale of Stifel Independent Advisers, underscoring core business resilience. The firm’s margin expansion reflects higher fee‑based income and disciplined cost management, positioning Stifel well above the industry average P/E of 11.63 and a healthy P/S of 1.90.

Earnings Beat & Guidance

Earnings per share of $1.45 beat the consensus $1.39, translating to a 5% upside over expectations. The company’s guidance remains positive, with a projected revenue growth of 9.3% for 2027, supported by a Tier 1 leverage ratio of 11.4% and a net debt/EBITDA of –0.1, indicating ample leverage flexibility.

Wealth Management Momentum

Global Wealth Management saw record net revenue, fueled by unprecedented asset‑management fees and heightened adviser productivity. Stifel’s $60 billion of short‑term cash—roughly 12% of AUM—offers a buffer for opportunistic deployments, aligning with a 2.02% dividend yield that appeals to income‑focused investors.

Institutional & Investment Banking

The Institutional Group’s 29% revenue jump, driven by record investment banking fees, reflects growing client confidence. The CLO portfolio, valued at $6.8 billion with 62% AAA rating, remains well‑diversified, and stress testing shows no new credit concerns, reinforcing Stifel’s risk‑adjusted returns.

Capital Position & Buyback Potential

With $6.2 billion of excess deposits and $560 million in excess capital, Stifel has the liquidity to pursue share buybacks, potentially tightening the share count and supporting a P/B of 1.33. The firm’s free cash flow yield of 8.29% underscores its capacity to reward shareholders.

Technology & AI Impact

CEO Ron Kruszewski emphasized that AI will enhance adviser productivity but human judgment remains essential. He views technology as a tailwind, anticipating that platforms will absorb transactional cash and help maintain a competitive edge in a high‑interest environment.

Market Outlook & M&A

Stifel anticipates a surge in bank M&A activity in the latter half of 2026, driven by favorable regulatory support. The firm’s global capabilities and cost‑saving initiatives position it to capitalize on consolidation opportunities, potentially boosting long‑term earnings.

Talent & Recruitment

Stifel’s strong culture and reputation enable it to attract top talent even amid economic uncertainty. The firm’s focus on acquisition and recruitment is expected to sustain growth, reinforcing its market positioning and supporting future revenue expansion.

3. NewsRoom

Card image cap

Stifel Declares Quarterly Common Stock Cash Dividend and Declares Preferred Stock Cash Dividend

May -01

Source: globenewswire.com

Card image cap

KBW Announces 2026 Bank Honor Roll Award Winners

Apr -28

Source: globenewswire.com

Card image cap

Stifel Financial: A High-Return, Diversified Franchise The Market Is Undervaluing

Apr -26

Source: seekingalpha.com

Card image cap

Stifel Financial: IB Leads The Way Despite March Dealmaking Snag

Apr -22

Source: seekingalpha.com

Card image cap

Stifel Financial (SF) Q1 Earnings and Revenues Top Estimates

Apr -22

Source: zacks.com

Card image cap

Stifel Reports First Quarter 2026 Results

Apr -22

Source: globenewswire.com

Card image cap

Stifel Financial Schedules First Quarter Financial Results Conference Call

Apr -16

Source: globenewswire.com

Card image cap

Heartland Value Plus Fund Q1 2026 Portfolio Activity

Apr -16

Source: seekingalpha.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stifel Financial

A-Score: 6.1/10

Value: 4.9

Growth: 5.6

Quality: 7.2

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
PJT Partners

A-Score: 6.0/10

Value: 4.3

Growth: 8.1

Quality: 6.9

Yield: 3.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Piper Sandler

A-Score: 5.5/10

Value: 4.1

Growth: 5.4

Quality: 6.6

Yield: 5.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Evercore

A-Score: 5.3/10

Value: 3.0

Growth: 5.8

Quality: 8.0

Yield: 3.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Interactive Brokers

A-Score: 5.2/10

Value: 1.4

Growth: 8.7

Quality: 6.2

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Jefferies

A-Score: 5.2/10

Value: 6.0

Growth: 5.1

Quality: 6.3

Yield: 6.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.03$

Current Price

77.03$

Potential

-0.00%

Expected Cash-Flows