State Street Corp

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STT : NYSE : Financial
$58.24 | %
Today's Range: 57.30 - 58.27
Avg. Daily Volume: 2,779,300
07/22/16 - 4:00 PM ET

Financial Analysis


STATE STREET CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.25% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2601.02696.0
EBITDA ($mil)1263.01396.0
EBIT ($mil)1263.01396.0
Net Income ($mil)368.0405.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)72489.097878.0
Total Assets ($mil)243685.0279476.0
Total Debt ($mil)16253.023695.0
Equity ($mil)21496.020819.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin95.3596.29
EBITDA Margin48.5551.78
Operating Margin0.00.0
Sales Turnover0.040.04
Return on Assets0.790.74
Return on Equity8.359.57
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.430.53
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)395.56411.31
Div / share0.340.3
EPS0.790.89
Book value / share54.3450.62
Institutional Own % n/a n/a
Avg Daily Volume2756901.03376641.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 18.21 for the Capital Markets industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 1.05 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.72. The price-to-sales ratio is 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 13.14 Peers 18.21   STT 20.96 Peers 18.05

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

STT is trading at a significant discount to its peers.

 

Premium. 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 premium 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 10.76 Peers 15.90   STT 2.10 Peers 1.57

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STT 1.05 Peers 1.72   STT -6.24 Peers -45.07

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.

 

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

STT is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STT 2.16 Peers 3.04   STT -2.76 Peers -2.28

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 significant 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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