Stock Price & Analysis

Based on the analysis of Stewart Information Services Corp (STC), the stock shows stability with a 3% dividend yield and recent upgrades from Validea's Growth Investor model. While technical indicators are neutral, the stock's performance and dividend make it a hold for income-focused investors.

Hold STC stock for its stable performance and attractive dividend yield.

The price prediction for STC Stock in 2025 is expected to reach $75, driven by improving profitability and market conditions. Analysts have set a price target of $74.00, indicating moderate growth potential. The stock's current price trends and financial health support this outlook.

The S1 support level for STC Stock is $67.68 ,The R1 resistant level for STC Stock is $72.13.

As of the end of day on 2025-03-21, the price of STC Stock was $70.24.

The target price for STC Stock according to analyst rating is 75.00, with the highest price target at 75.00 and the lowest at 75.00. Analysts have a Hold rating on STC Stock overall.

The market cap of STC is $2.0B.

Analysis and Insights

Valuation Metrics

STC's valuation metrics suggest a mixed outlook. The stock has a trailing P/E ratio of 25.90, which is higher than the industry average, indicating potential overvaluation. The EV/EBITDA ratio of 11.53 is also elevated, further supporting the overvaluation thesis. However, the P/B ratio of 1.34 is close to 1, suggesting the stock is trading near its book value.

Financial Performance

STC has shown steady revenue growth, with Q4 2024 revenue reaching $664.48 million, up from $547.09 million in Q1 2024. Net income has also improved, though it remains volatile. The company's gross margin of 32.65% and ROE of 5.29% are stable but unremarkable compared to industry peers.

Dividend Yield and Analyst Sentiment

The dividend yield of 2.88% is modest but attractive for income-focused investors. Analysts are mixed, with a consensus rating of "Hold" and a price target of $75, representing an 11.5% upside. Recent upgrades in the Validea Growth Investor model also signal cautious optimism.

Conclusion

While STC's high P/E and EV/EBITDA ratios suggest overvaluation, its stable financials and dividend yield provide some support. The stock is not significantly overvalued but may be fairly priced given its growth prospects.

Stewart Information Services Corporation is a title insurance and real estate services company. The Company is engaged in offering products and services through its direct operations, network of approved agencies and other companies. The Company operates through three segments: title insurance and related services, real estate solutions, and corporate and other. Title insurance and related services include the functions of searching, examining, closing and insuring the condition of the title to real property. The title segment also includes home and personal insurance services, Internal Revenue Code Section 1031 tax-deferred (Section 1031) exchanges, and digital customer engagement platform services. The real estate solutions segment supports the real estate mortgage industry by primarily providing appraisal management services, online notarization and closing solutions, credit and real estate information services, and search and valuation services.

The price prediction for STC Stock in 2030 is estimated to reach $100 per share. This forecast is based on the company's stable dividend yield, recent positive stock performance, and analyst price targets averaging $74, suggesting moderate growth potential. The real estate services sector's outlook and Stewart Information Services' consistent financials support this projection.

STC has a total of 6800 employees.