State Street (STT)
Financials · NYSE · US
Fundamentals
Valuation and ratings
State Street trades at $185.66, which is 53% above the $87.01 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 39 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 18.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About State Street
State Street Corporation provides various financial products and services to institutional investors. It offers custody, accounting, and fund administration services for traditional and alternative assets, as well as multi-asset class investments; recordkeeping, client reporting, and investment book of record, transaction management, loans, cash, derivatives, and collateral services; investor services operations outsourcing; performance, risk, and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage, and other trading services; securities finance, such as prime services products; and deposit and short-term investment facilities. The company also provides the State Street Alpha platform that combines portfolio management, trading and execution, analytics and compliance tools, and advanced data aggregation and integration with other industry platforms and providers; front-office technology that automates and simplifies the institutional investment process comprising portfolio management and risk analytics, trading, and post-trade settlement with integrated compliance and managed data; investment management solutions; and portfolio management, trading compliance, and manager/sponsor communication. In addition, it offers investment management solutions, such as strategies across equity, fixed income, cash, multi-asset, and alternatives; and ETFs, custom indexed, managed funds, and mandates. The company provides its products and services to mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, wealth managers, investment managers, foundations, and endowments. The company was founded in 1792 and is headquartered in Boston, Massachusetts.
STT passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
17 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Bill Nygren, HARRIS ASSOCIATES L P$1.56B · 1.1% of book
- Dodge & Cox, DODGE & COX$442.94M · 0.2% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$205.80M · 0.1% of book
- Yacktman Asset Management, YACKTMAN ASSET MANAGEMENT LP$115.07M · 1.5% of book
- Ken Griffin, CITADEL ADVISORS LLC$103.59M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is State Street (STT) undervalued?
Against our discounted cash flow estimate of $87.01, STT at $185.66 is 53% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own STT?
17 of the institutions we track reported a position in STT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is STT's P/E ratio?
STT trades at 18.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for STT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.