State Street logged a 1.2% change during today's afternoon session, and is now trading at a price of $72.33 per share.
State Street returned losses of -7.0% last year, with its stock price reaching a high of $94.74 and a low of $62.78. Over the same period, the stock underperformed the S&P 500 index by -24.0%. As of April 2023, the company's 50-day average price was $67.34. State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. Based in Boston, MA, the large-cap Finance company has 42,000 full time employees. State Street has offered a 3.6% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $12,131 | $11,756 | $11,703 | $12,027 | $12,148 | $12,057 |
| Revenue Growth | n/a | -3.09% | -0.45% | 2.77% | 1.01% | -0.75% |
| Interest Income (MM) | $3,662 | $3,941 | $2,575 | $1,908 | $4,088 | $8,349 |
| Operating Margins | 25% | 23% | 25% | 26% | 27% | 25% |
| Net Margins | 21% | 19% | 21% | 22% | 23% | 20% |
| Net Income (MM) | $2,593 | $2,242 | $2,420 | $2,693 | $2,774 | $2,467 |
| Depreciation & Amort. (MM) | $599 | $599 | $234 | $245 | $238 | $239 |
| Earnings Per Share | $6.39 | $5.38 | $6.32 | $7.19 | $7.19 | $6.85 |
| EPS Growth | n/a | -15.81% | 17.47% | 13.77% | 0.0% | -4.73% |
| Diluted Shares (MM) | 376 | 374 | 357 | 358 | 370 | 250 |
| Free Cash Flow (MM) | $9,566 | $4,960 | $2,972 | -$7,521 | $11,220 | $2,853 |
| Capital Expenditures (MM) | $609 | $730 | $560 | $811 | $734 | $691 |
| Long Term Debt (MM) | $0 | $0 | $0 | $0 | $0 | $0 |
State Street has weak revenue growth and a flat capital expenditure trend, decent net margins with a stable trend, and irregular cash flows. Furthermore, the firm has EPS growth achieved by reducing the number of outstanding shares.
State Street's Earnings and Assets May Be Undervalued:
State Street has a trailing twelve month P/E ratio of 9.8, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $7.56, the company has a forward P/E ratio of 8.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 1.2%. On this basis, the company's PEG ratio is 8.4, which suggests that it is overpriced. In contrast, the market is likely undervaluing State Street in terms of its equity because its P/B ratio is 1.03 while the sector average is 1.58.
State Street Has an Average Rating of Hold:
The 14 analysts following State Street have set target prices ranging from $68.0 to $87.0 per share, for an average of $75.32 with a hold rating. As of April 2023, the company is trading -10.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
State Street has a very low short interest because 1.4% of the company's shares are sold short. Institutions own 93.1% of the company's shares, and the insider ownership rate stands at 0.4%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,764,710,666.
