Stewart Information Services Corporation (NYSE:STC) is one of the 10 undervalued growth stocks for the next 5 years. On February 5, Stewart Information Services Corporation (NYSE:STC) reported strong financial results for the fourth quarter. The company posted revenue of $790.6 million for the quarter, beating consensus estimates of $774.95 million. Its Title segment drove much of the growth, with operating revenues rising 19%, supported by gains across both direct and agency title operations. This contrib ...

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue growth of 18%, net income growth of 48%, and adjusted EPS growth of 46% compared to the previous year [4][19] - The adjusted pre-tax margin improved to 6.8%, up from 5.8% in the prior year [4] - For the fourth quarter, revenue grew by 20% and adjusted net income increased by 52% compared to the fourth quarter of 2024 [8][19] Business Line Data and Key Metrics Changes - Domestic commercial revenues increased by 34% year-over-year, with the national commercial services business growing by 43% [5][6] - The real estate solutions business saw a revenue increase of 22% year-over-year, while agency services revenue grew by 21% overall [7] - The direct operations business unit grew by 8% in the fourth quarter, with the main street commercial business growing by 17% for the full year [10] Market Data and Key Metrics Changes - Existing home sales remained in a multi-year slump, with the lowest sales in 30 years, but there are signs of cautious optimism for 2026 [3][9] - Mortgage rates in the fourth quarter hovered between 6.1% and 6.35%, showing more stability than in previous trends [8] - Housing inventory increased by 8% in the fourth quarter compared to the same period in 2024 [9] Company Strategy and Development Direction - The company aims to strengthen its position through targeted acquisitions and organic growth, having recently acquired Mortgage Contracting Services to enhance its Lender Services portfolio [4][15] - There is a focus on expanding geographic presence and deepening market penetration, particularly in Canada and key U.S. states [15][16] - The company is committed to becoming a premier title services provider and is investing in best-in-class talent [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the housing market in 2026, expecting modest improvements in existing home sales [9][54] - The company anticipates that existing home sales will not return to long-term averages but expects gradual market recovery [9] - Management highlighted the importance of maintaining financial flexibility to capitalize on potential opportunities [5][24] Other Important Information - The company successfully upsized its credit facility by $100 million to $300 million and executed an equity offering raising $140 million [5] - The dividend was increased for the fifth consecutive year, moving from $2 to $2.10 per share annually [5] Q&A Session Summary Question: Expectations for commercial revenue growth in 2026 - Management is confident in the commercial pipeline and expects growth, although seasonality will still play a role [28][29] Question: Percentage of agent premiums that are commercial - Commercial represented about 15%-20% of the business, with growth in commercial premiums expected to continue [33][34] Question: Plans for the line of credit - The company plans to maintain flexibility with the line of credit rather than aggressively pay it down [40] Question: Impact of AI on the business - AI initiatives are being implemented to improve efficiency and customer satisfaction, with a focus on enhancing service delivery [41][42] Question: Revenue contribution from Mortgage Contracting Services (MCS) - MCS is expected to contribute approximately $165 million in annual revenue, with some seasonality in its performance [84]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue growth of 18%, net income growth of 48%, and adjusted EPS growth of 46% compared to the previous year [4][19] - The adjusted pre-tax margin improved to 6.8%, up from 5.8% in the prior year [4] - For the fourth quarter, revenue grew by 20% and adjusted net income increased by 52% compared to the fourth quarter of 2024 [8][19] Business Line Data and Key Metrics Changes - Domestic commercial revenues grew by 34% year-over-year, with the national commercial services business growing by 43% [5][6] - The real estate solutions business saw a revenue increase of 22% year-over-year, while agency services revenue grew by 21% overall [7] - The direct operations business unit grew by 8% in the fourth quarter, with the main street commercial business growing by 17% for the full year [10] Market Data and Key Metrics Changes - Existing home sales remained in a multi-year slump, with the lowest sales in 30 years, but there are signs of cautious optimism for 2026 [3][9] - Mortgage rates in the fourth quarter hovered between 6.1% and 6.35%, showing more stability than in previous trends [8] - Housing inventory increased by 8% in the fourth quarter compared to the same period in 2024 [9] Company Strategy and Development Direction - The company aims to strengthen its position through targeted acquisitions and organic growth, having recently acquired Mortgage Contracting Services to enhance its Lender Services portfolio [4][15] - There is a focus on expanding geographic presence and deepening market penetration, particularly in Canada and key U.S. markets [15][16] - The company is committed to becoming a premier title services provider and is investing in best-in-class talent [17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the housing market in 2026, expecting modest improvements in existing home sales [9][56] - The company anticipates that its margins will improve in the low teens range for the real estate solutions segment due to the recent acquisition [15][23] - Management highlighted the importance of AI in improving efficiency and customer satisfaction, with numerous initiatives underway [42][44] Other Important Information - The company successfully upsized its credit facility by $100 million to $300 million and executed an equity offering raising $140 million [5] - The dividend was increased for the fifth consecutive year, moving from $2 to $2.10 per share annually [5] Q&A Session Summary Question: Expectations for commercial revenue growth in 2026 - Management is confident in the commercial pipeline and expects growth, although seasonality will still play a role [28][29] Question: Percentage of agent premiums that are commercial - Approximately 15%-20% of the business is commercial, with growth in commercial expected to continue [33][34] Question: Plans for the line of credit - The company plans to maintain flexibility with the line of credit rather than aggressively pay it down [40] Question: Impact of AI on the business - AI is seen as a tool to improve efficiency and customer satisfaction, with numerous initiatives in place [41][42] Question: Specifics on cautious optimism for housing - Management noted improvements in inventory quality and activity, expecting modest growth in 2026 [52][54] Question: Impact of title payment rate reduction in Texas - The reduction is expected to have a low single-digit impact on earnings, with manageable effects for the company [60][62] Question: Revenue contribution from Mortgage Contracting Services (MCS) - MCS is expected to contribute approximately $165 million in annual revenue, with some seasonality in the first quarter [83]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue growth of 18%, net income growth of 48%, and adjusted EPS growth of 46% compared to the previous year [4][5] - The adjusted pre-tax margin improved to 6.8%, up from 5.8% in the prior year [4] - For Q4 2025, revenue grew by 20% and adjusted net income increased by 52% compared to Q4 2024 [7][18] Business Line Data and Key Metrics Changes - Domestic commercial revenues grew by 34% year-over-year, with the national commercial services business growing by 43% [5][6] - The real estate solutions business saw a revenue increase of 22% year-over-year [6] - Agency services revenue grew by 21% overall, with a 34% increase in commercial transactions [6][11] - The direct operations business unit grew by 8% in Q4 compared to the same period last year [9] Market Data and Key Metrics Changes - Existing home sales remained in a multi-year slump, with the lowest sales in 30 years, but there are signs of cautious optimism for 2026 [3][8] - Mortgage rates in Q4 hovered between 6.1% and 6.35%, showing more stability [7] - Housing inventory increased by 8% in Q4 compared to Q4 2024 [8] Company Strategy and Development Direction - The company aims to strengthen its position through targeted acquisitions and organic growth, with a focus on becoming a destination for top talent [4][5] - The acquisition of Mortgage Contracting Services (MCS) is expected to enhance the company's service offerings and client coverage [4][13] - The company is focused on expanding its geographic presence and deepening its market penetration, particularly in Canada and key U.S. markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the housing market in 2026, expecting modest improvements in existing home sales [8][51] - The company anticipates that existing home sales will not return to long-term averages but expects gradual recovery [8][56] - Management highlighted the importance of maintaining financial flexibility to capitalize on potential opportunities [5][21] Other Important Information - The company successfully upsized its credit facility by $100 million to $300 million and executed an equity offering raising $140 million [5] - The dividend was increased for the fifth consecutive year, from $2 to $2.10 per share annually [5] Q&A Session Summary Question: Expectations for commercial revenue growth in 2026 - Management is confident in the commercial pipeline and expects Q1 to be better than usual, although seasonality will still play a role [25][26] Question: Percentage of agent premiums that are commercial - Commercial represented about 15%-20% of the business, with growth in commercial premiums expected to continue [29][30] Question: Plans for the line of credit - The company plans to maintain flexibility with the line of credit rather than aggressively pay it down [36][37] Question: Impact of AI on the business - AI initiatives are expected to improve efficiency and customer satisfaction, with numerous projects underway [38][39] Question: Specifics on cautious optimism for housing - Management noted improvements in inventory quality and activity, expecting modest growth in 2026 [49][51] Question: Revenue contribution from MCS - MCS is expected to contribute approximately $165 million in annual revenue, with some seasonality in the first quarter [81]

Core Insights - Stewart Information Services Corporation (STC) is a significant entity in the title insurance and real estate services sector, offering various services including title insurance and closing services, competing with firms like First American Financial Corporation and Fidelity National Financial [1] Financial Performance - For the fourth quarter of 2025, STC reported an earnings per share (EPS) of $1.65, exceeding the estimated EPS of $1.35, and showing an improvement from the previous year's adjusted EPS of $1.12 [2] - The company's net income for the fourth quarter was $36.3 million, or $1.25 per diluted share, up from $22.7 million, or $0.80 per diluted share, in the same period of 2024 [2] - STC's revenue for the fourth quarter reached $794.4 million, surpassing the estimated $774.9 million, and marking an increase from $665.9 million reported in the fourth quarter of 2024 [3] - For the full year 2025, STC's revenues totaled $2.9 billion, up from $2.5 billion in 2024, indicating a growth trajectory [3] Valuation Metrics - The company's price-to-earnings (P/E) ratio is approximately 19.27, reflecting investor confidence in its earnings potential [4] - The price-to-sales ratio is about 0.74, indicating the stock is valued at less than one times its sales [4] - The enterprise value to sales ratio is around 0.87, showing the company's total valuation relative to its sales [4] Debt and Cash Flow - STC's debt-to-equity ratio is approximately 0.39, suggesting a moderate level of debt relative to equity, indicating a balanced approach to leveraging debt for growth [5] - The enterprise value to operating cash flow ratio is approximately 14.60, providing insight into the company's cash flow generation relative to its valuation [5] - The earnings yield of about 5.19% offers a perspective on the return on investment for shareholders [5]

Exhibit 99.1 STEWART INFORMATION SERVICES CORP. P.O. Box 2029 Houston, Texas 77252-2029 www.stewart.com CONTACT Kathryn Bass Investor Relations (713) 625-8633 Stewart Reports Fourth Quarter and Full Year 2025 Results HOUSTON, February 4, 2026 - Stewart Information Services Corporation (NYSE: STC) today reported net income attributable to Stewart of $36.3 million ($1.25 per diluted share) for the fourth quarter 2025, compared to net income attributable to Stewart of $22.7 million ($0.80 per diluted share) fo ...

Core Insights - PropStream has become a new advertising partner on the Tuesday app, which will help agents discover MLS listings in 2026 [1] Company Overview - PropStream is enhancing its visibility and reach by partnering with the Tuesday app, indicating a strategic move to leverage technology for real estate professionals [1]

Core Viewpoint - The article summarizes key analyst rating adjustments that are closely watched by Wall Street and can influence market trends, highlighting significant upgrades, downgrades, and new coverage ratings for various companies [1][5]. Upgraded Ratings - Aritet Investment upgraded Shopify (SHOP) from Neutral to Buy, raising the target price from $166 to $175, citing attractive valuation after recent weakness [6]. - William Blair upgraded Palantir (PLTR) from Market Perform to Outperform ahead of its earnings report, emphasizing valuation advantages as the core reason for the upgrade [6]. - BTIG raised McDonald's (MCD) rating from Neutral to Buy with a target price of $360, noting that research on franchisees indicates effective promotional strategies are driving customer traffic growth [6]. - JPMorgan upgraded Autodesk (ADSK) from Neutral to Overweight, maintaining a target price of $319, due to differentiated fundamentals in the vertical software as a service sector [6]. - JPMorgan raised Church & Dwight (CHD) from Underweight to Neutral, increasing the target price from $92 to $100, believing that business adjustments will lead to better sales growth [6]. Downgraded Ratings - JPMorgan downgraded Best Buy (BBY) from Overweight to Neutral, significantly lowering the target price from $99 to $76, anticipating an "unfavorable" earnings report for Q4 [6]. - Leith Wheeler downgraded BioNTech (BNTX) from Outperform to Market Perform, slightly raising the target price from $112 to $113, while expressing long-term optimism about the company's differentiated R&D potential [6]. - Canadian Imperial Bank downgraded Fortinet (FTNT) from Outperform to Sector Perform, maintaining a target price of $85, expressing caution about the stock's performance in 2026 [6]. - HSBC downgraded Chevron (CVX) from Buy to Hold, raising the target price from $169 to $180, citing valuation factors as the main reason for the downgrade [6]. - Morgan Stanley downgraded Humana (HUM) from Equal Weight to Underweight, significantly lowering the target price from $262 to $174, citing risks related to bidding strategies and policies affecting profit margin recovery [6]. New Coverage Ratings - Jefferies initiated coverage on Micron Technology (MU) with a Buy rating and a target price of $500, believing that the company's fourth-generation high-bandwidth memory (HBM4) will capture market share post Q2 [6]. - Morgan Stanley initiated coverage on Circle Network (CRCL) with an Equal Weight rating and a target price of $66, indicating that higher valuations are unlikely until stablecoin technology becomes more widely adopted [6]. - Citizens Bank initiated coverage on Stewart Information (STC) with an Outperform rating and a target price of $80, citing significant attractiveness at current valuation levels [6]. - Wells Fargo initiated coverage on Praxis Precision Medicines (PRAX) with an Equal Weight rating and a target price of $282, noting uncertainty regarding the approval prospects of the drug ulixacaltamide [6]. - Craig-Hallum initiated coverage on Simon Group (THR) with a Buy rating and a target price of $60, highlighting the company's improved business conditions and diversification benefiting from data center cooling technology trends [6].

Core Insights - PropStream has launched "PropStream Pros," a video and podcast series aimed at educating real estate professionals through candid conversations and practical insights [1][2][4] - The series emphasizes the importance of real-world experiences and adaptability in the real estate market, showcasing diverse voices and paths within the industry [2][3] Company Commitment - Education is a fundamental aspect of PropStream's mission, and "PropStream Pros" reflects this commitment by fostering honest discussions and shared experiences [2][4] - The series aims to help listeners recognize that challenges and learning moments can be valuable assets in their real estate careers [3] Series Details - Season 1 of "PropStream Pros" features unscripted conversations that highlight the lessons learned from navigating the real estate landscape [2][3] - Season 2 is set to launch on January 15, 2026, continuing to provide new insights and perspectives from industry professionals [4] Company Background - PropStream, founded in 2006, is a leading all-in-one real estate lead generation platform that offers extensive data and marketing tools to real estate professionals [5] - The company provides insights on over 160 million properties in the U.S. and has been recognized as a HousingWire Tech 100 Honoree for five consecutive years since 2021 [5]

Core Insights - PropStream has launched two new dialing workflows and an enhanced skip tracing experience to streamline the process for real estate professionals from property research to initiating conversations [1][2][3] Group 1: Product Enhancements - The new features simplify access to skip tracing and provide flexible dialing options, including AI-supported prompts for individual calls and integration with BatchDialer's high-volume calling campaigns [2] - These enhancements aim to reduce manual steps, improve clarity and prioritization of contact data, and include built-in compliance indicators for various user workflows [2] Group 2: Company Background - PropStream, founded in 2006 and acquired by Stewart Information Services Corporation in November 2021, is recognized for its comprehensive real estate lead generation platform, offering insights on over 160 million properties [5] - The platform features advanced filtering capabilities with over 165 filters and 20 pre-built Lead Lists, enabling real estate professionals to identify off-market opportunities and connect with sellers efficiently [5]