State Street Corporation

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STT : NYSE : Financial
$89.66 up 1.76 | 2.0%
Today's Range: 88.9 - 89.94
Avg. Daily Volume: 1859800.0
06/28/17 - 4:03 PM ET

Financial Analysis


STATE STREET CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2778.02601.0
EBITDA ($mil)1364.01263.0
EBIT ($mil)1364.01263.0
Net Income ($mil)502.0368.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)71879.072489.0
Total Assets ($mil)236802.0243685.0
Total Debt ($mil)16574.016253.0
Equity ($mil)21294.021496.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin95.0395.35
EBITDA Margin49.148.55
Operating Margin0.00.0
Sales Turnover0.050.04
Return on Assets0.960.79
Return on Equity9.858.35
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.440.43
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)376.36395.56
Div / share0.380.34
EPS1.150.79
Book value / share56.5854.34
Institutional Own % n/a n/a
Avg Daily Volume1887589.02360014.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.38 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.57 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 4.02. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, STATE STREET CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STT 16.61 Peers 21.38   STT 10.94 Peers 18.26

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STT is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

STT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STT 13.36 Peers 17.55   STT 0.87 Peers 1.27

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

STT is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

STT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STT 1.57 Peers 4.02   STT 22.19 Peers 61.13

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, STT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STT 3.10 Peers 4.03   STT 2.46 Peers 10.66

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

STT is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

STT significantly trails its peers on the basis of sales growth

 

 

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