| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 10.9x | 17.3x | Top tier | |
Growth | 84 | 20.5% | 7.1% | Top tier | |
Quality | 48 | — | — | Around median | |
Safety | 65 | — | — | Around median | |
Capital Return | 74 | 4.71% | 0.06% | Top tier | |
Momentum | 15 | -15.5% | -1.7% | Bottom tier | |
Sentiment | 88 | 3 | 3 | Top tier |
10-year US Treasury yield 5.00% as of 2026-10-23. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Stewart Information Services Corporation operates in title services and related insurance, generating revenue through direct operations, agency services, and domestic and international commercial transactions. Through its real estate solutions segment, it also provides property preservation, valuation, and credit information services, and aims to expand its coverage and services to the top 300 lenders while increasing cross-selling among its products.
In Q2 fiscal year 2026, revenue was $899.2 million, net income was $37.2 million, and diluted earnings per share were $1.21, compared with $1.13 in the corresponding period, according to the earnings call. This equates to a net income margin of approximately 4.1%, while reported net income increased by about 17%, and adjusted net income reached $43 million with adjusted earnings per share of $1.39. For the first half of fiscal year 2026, management said revenue increased 26% and adjusted pretax income rose 45% despite the housing market remaining near multidecade lows.
Growth came from a relatively diverse mix within the business: domestic commercial premiums increased 20%, total agency revenue reached $377 million, up 25%, while real estate solutions revenue increased 75% to $85 million, supported by Mortgage Contracting Services and growth in credit information and valuation services. In contrast, direct purchase transactions were comparable to the corresponding period, and total non-commercial direct business declined by about 1% due to volatility in centralized transaction business and difficult comparisons.
The analyst consensus on STC is Neutral, with an average price target of $87 and identical high and low targets of $87; this target is above the 52-week range high of $78.61, while the range low is $57.11. No valid price-to-earnings multiple was provided in the data, so earnings per share of $4.05 in fiscal year 2025 and earnings per share of approximately $4.37 for the trailing twelve-month period in fiscal year 2026 remain more appropriate operating references, balancing growth in commercial business and real estate solutions against housing weakness and investment pressure on margins.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Growth depends more on agency services, domestic commercial business, and real estate solutions than on a housing market recovery. In Q2 fiscal year 2026, total agency revenue grew 25% to $377 million, and domestic commercial premiums increased 20%. Real estate solutions revenue also increased 75% to $85 million, supported by MCS and growth in credit information and valuation services.
Existing home sales increased by only about 2% in the first half of fiscal year 2026 and remained at an annualized rate of approximately 4.0 to 4.1 million units. Management therefore lowered its fiscal year 2026 market growth forecast from 6%–8% to a ceiling of approximately 2%, with mortgage rates holding around 6.5% during Q2. Despite this, direct residential transactions grew 3%, while commercial and agency business helped offset residential weakness.
Management expects the company’s margin to improve by about half a percentage point in fiscal year 2026, with earnings growing faster than revenue. In Q2 fiscal year 2026, the adjusted pretax margin for real estate solutions improved to approximately 14% from 11%, and the employee cost ratio declined to 27% from 30% due to revenue growth. However, the other operating expense ratio increased to 27% from 25%, and management expects a future range of between 27% and 28% because of the mix of real estate solutions and commercial transactions.
Automated analysis for informational purposes only — not investment advice.
Commercial business has become one of the most prominent growth drivers, with domestic commercial premiums increasing 20% in Q2 fiscal year 2026 and 30% in the first half. The business expanded from $208 million at the end of 2023 to approximately $450 million during the four quarters ended Q2 fiscal year 2026, with strength concentrated in energy, data centers, multifamily real estate, and industrial facilities. However, the average commercial fee of approximately $16,900 to $17,000 per file and the lengthy timing of transactions make quarterly results volatile.
As of June 30, 2026, the company had approximately $400 million in cash and investments above statutory premium reserve requirements, after raising capital in late 2025. Management is targeting small transactions in agencies and real estate services, and title businesses are typically priced at 4 to 6 times earnings before interest, taxes, depreciation, and amortization, while higher-margin services businesses may reach 8 times. The company completed the small Rattikin transaction to strengthen its presence in Fort Worth within the Dallas market, while stating that the other potential transactions are not the size of MCS.
The primary risk is that the existing housing market remains near 4.0 to 4.1 million units annually, delaying the benefit from excess capacity in direct operations. Hiring investments of approximately $8 million in Q2 fiscal year 2026 and a 17% increase in employee costs since the beginning of the fiscal year may also delay margin expansion. Additional risks include volatility in commercial transaction closings, the approximately 20% decline in centralized transaction business, and regulatory exposure to restrictions on institutional home purchases.