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State Street Corp (STT)

Undervalued
Financial ServicesAsset ManagementUnited States

Fundamental

70

Price

$174.59

Market Cap

$49.37B

Part 1 · What the company is worth

Overview

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.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$15.05B

Trailing 12 months (through 6/30/2026)

Net Income

$3.46B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$10.84B

Total Equity

$27.84B

Total Liabilities

$338.21B

Current Ratio

-

Interest Coverage

1.36

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$235.34

Current Price

$174.59

Margin of Safety

+25.8%

Fair Value Range

$152.97 - $317.70

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$199.50
Discounted cash flow (DCF):$594.65
Earnings multiple (P/E):$137.74
Graham growth formula:$254.02
Earnings power value (EPV):$57.50
Justified P/B:$102.98
Dividend discount (Gordon):$50.41
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$151.00
Revenue multiple:$92.60
Analyst Consensus:Buy (14B / 7H / 0S)
Last Earnings Surprise:+8.52%

Valuation Metrics

P/E Ratio

15.41

ROE

10.6%

P/B Ratio

1.70

P/FCF

23.75

Gross Margin

-

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

10.5%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 5.73%
  • Price CAGR 9.55%
  • P/FCF 23.75
  • P/B Ratio 1.70
  • Operating Margin 29.1%
  • Positive Free Cash Flow
  • Low reliance on intangibles
  • DCF valuation (Undervalued)
  • ROE 12.4%
  • Revenue Growth 5Y 7.3%
  • Analyst Consensus 67% Buy
  • Earnings Surprise avg 4.6%
  • PEG Ratio 1.69
  • Earnings Quality (OCF/NI) 1.01
  • Share Dilution -4.3%
  • Net Margin Trend 23.0% vs 21.1%
  • Piotroski F-Score 7/9

Failed (5)

  • Debt/Equity ratio
  • CapEx intensity
  • Interest Coverage
  • Return on Tangible Assets
  • Price below Graham Number

Unavailable (5)

  • ROIC NaN%
  • Gross Margin NaN%
  • Dividend Payout NaN%
  • Current Ratio
  • Debt/EBITDA

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.01

High quality: earnings backed by cash

Share Dilution

-4.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Ronald Philip O'HanleyCEO, President & Chairman68
Mr. John F. WoodsExecutive VP & CFO61
Mr. Mostapha TahiriExecutive VP & COO50
Mr. Joerg AmbrosiusExecutive VP & President of Investment Services54
Mr. Mark R. KeatingExecutive VP & Global Head of Strategic Finance56
Ms. Yie-Hsin HungPresident & CEO of State Street Investment Management62
Mr. Pankaj VaishExecutive VP & Global Chief Investment Officer and Treasury-
Mr. Craig Jack ReadExecutive VP, Global Controller & Chief Accounting Officer56
Mr. Christopher HerringshawExecutive VP & CTO-
Mr. Andrew ZitneyExecutive VP & Chief Information Officer-

Audit Risk

9

Board Risk

5

Compensation Risk

5

Shareholder Rights Risk

5

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-19

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-30

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-14

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for STT, sourced from Markets Gazette.

  • 11d agoNEUTRAL
    State Street Sees Resilience Driving Portfolios

    State Street Investment Management CEO Yie-Hsin Hung highlighted the growing importance of resilient portfolios amidst higher capital costs, geopolitical shifts, and technological disruption. She noted that institutional investors are increasing liquidity and portfolio buffers. State Street is also enhancing access to private markets and is involved with the US government's Trump Accounts program by providing the default ETF. This strategic positioning aims to navigate a complex investment landscape with a wider array of potential outcomes for investors.

  • 7/28/2026POSITIVE
    State Street Bets on Oman

    State Street Corporation is expanding its presence into Oman, signaling a strategic move into the Gulf region's emerging financial hub. The U.S. custody giant has signed an agreement with Jadwa Investment, a Riyadh-based firm managing approximately $30 billion in client assets. This partnership aims to jointly target institutional clients within Oman. The expansion represents a significant vote of confidence in Oman's potential as a financial center and could open new avenues for State Street's institutional services and asset management offerings in the Middle East.

  • 6/16/2026POSITIVE
    State Street launches GENIUS Act-aligned money market fund for stablecoin reserves

    State Street has launched a new money market fund, the GENIUS Act-aligned fund, designed to manage assets backing dollar-pegged stablecoins. This move positions State Street to capture a growing segment of the financial market as institutions increasingly compete to manage these reserves. The fund's alignment with the GENIUS Act suggests a focus on regulatory compliance and security, which could attract significant institutional capital seeking stable and regulated investment vehicles for digital asset-related holdings. This initiative is expected to enhance State Street's revenue streams and market share in the evolving digital finance landscape.

  • 5/4/2026NEUTRAL
    State Street CEO: ETFs Have 'Exploded'

    State Street Chairman and CEO Ron O'Hanley highlighted the significant growth of the ETF market, describing it as having 'exploded'. Speaking at the Milken Institute Global Conference, O'Hanley also touched upon the company's approach to 'episodic' mergers and acquisitions and the influence of geopolitical risks on market dynamics. While the commentary acknowledges the robust expansion of ETFs, it focuses on the company's strategic positioning rather than providing specific performance metrics or forward-looking guidance that would directly impact State Street's stock price or the ETF market itself.

  • 4/20/2026POSITIVE
    State Street Had A 'Blockbuster' Q1, Analyst Says

    State Street Corporation (STT) experienced a significant rally following RBC Capital's assessment of its Q1 performance as 'blockbuster.' The financial services firm reported a Return on Tangible Common Equity (ROTCE) of 20%, a figure that has prompted multiple analysts to elevate their price targets for the stock. This strong operational performance, highlighted by the ROTCE metric, suggests robust profitability and efficient capital deployment, which are key indicators for investor confidence and potential future share price appreciation.

  • 4/17/2026NEUTRAL
    Transcript: State Street Q1 2026 Earnings Conference Call

    State Street Corporation's Q1 2026 Earnings Conference Call transcript has been released. While specific financial figures and forward-looking statements are detailed within the transcript, this announcement itself is informational. Investors and analysts will need to review the content of the call to ascertain the company's performance, strategic direction, and any potential impacts on its stock valuation. The call likely covers key performance indicators, market outlook, and management's commentary on business segments.

  • 3/30/2026POSITIVE
    State Street Debuts Digital Asset Platform

    Custody giant State Street, managing approximately $52 trillion in assets, has officially launched its Digital Assets Platform. This strategic move addresses the escalating customer demand for tokenized financial products, signaling a significant embrace of blockchain technology within traditional finance. The platform's debut positions State Street to capitalize on the growing digital asset market, potentially enhancing its service offerings and revenue streams. Investors may view this as a forward-thinking initiative that could drive future growth and solidify its competitive edge in asset servicing.

  • 3/4/2026NEUTRAL
    State Street's Hung Not Surprised by Market Reaction to War With Iran

    Yie-Hsin Hung, president and CEO of State Street Investment Management, stated that the market's reaction to the war with Iran is "not unexpected," observing a flight to safe-haven assets. Speaking at Bloomberg Invest in New York, she indicated that current market movements align with typical dynamics during geopolitical uncertainty. While no direct recommendations for specific assets to buy or sell were made, the prospect of increased demand for safe havens could indirectly influence capital flows, potentially benefiting instruments like gold or government bonds.

  • 3/4/2026NEUTRAL
    State Street Investment CEO on Market Reaction to Iran

    Yie-Hsin Hung, president and CEO at State Street Investment, comments on market reaction to geopolitical tensions with Iran, calling it 'not unexpected.' Hung observes a classic 'flight to safety,' where investors move towards assets considered safer during times of uncertainty. This behavior is typical in high-risk scenarios, where demand for safe-haven assets like gold or government bonds tends to rise at the expense of more volatile assets like stocks. The statement offers an analysis of market sentiment without indicating specific price movements for State Street or other assets.

via Markets Gazette