Stock In Focus – TAM Stock Screener – Stewart Information Services Corp (STC)
Thursday, August 11, 2022 · Johnny Hopkins
As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Stewart Information Services Corp (STC)
Stewart Information Services Corp is a provider of real estate services. The company offers residential and commercial title insurance and closing and settlement services to the mortgage industry. Its operating segments include Title insurance and related services, and Ancillary services and corporate. Title insurance and related services include the functions of searching, examining, closing and insuring the condition of the title to real property. Ancillary services and corporate segment provide search and valuation services to the mortgage industry through Stewart Lender Services.
A quick look at the share price history (below) over the past twelve months shows that the price is down 7%. Here’s why the company is undervalued.
Summary
Market Cap: $1.430 Billion
Enterprise Value: $1.647 Billion
Operating Earnings
Operating Earnings: $441 Million
Acquirer’s Multiple
Acquirer’s Multiple: 3.73
Free Cash Flow (TTM)
Free Cash Flow: $331 Million
FCF/EV Yield
FCF/EV Yield: 23%
Shareholder Yield:
Shareholder Yield: 2.49%
Other Indicators
Altman Z-Score: 3.034
ROE: 23.29%
ROA (5 Year Avge%): 15.98