State Street Corporation (STT) is a publicly traded company in the Financial Services — Asset Management industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
State Street Corporation (STT) is a well-established global financial services firm that delivers a wide array of financial products and specialized services to institutional investors worldwide. The company's extensive offerings include core investment servicing functionalities such as secure asset custody, detailed product accounting, daily valuation, comprehensive administration, master trust and master custody arrangements, and specific depotbank services.
Is State Street Corporation stock overvalued or undervalued in 2026?
State Street Corporation (STT) trades at 13.9× earnings (P/E), above the median of the 324 financial services companies over $2bn in Kaplio's universe. At the decade median (12.3×) $151 (-11 %); at its sector median (13.0×) $159 (-6 %).
Kaplio overview: State Street Corporation
Market cap $46B · 52 weeks $113 – $194 (13 % below the high) · P/E 13.9× · 2027 expected P/E 11.0× · Dividend 2.0 % · 4 years rising · Next earnings January 15, 2027 · expected EPS $3.66 · Closing price, Oct 30 · accounts published Oct 14.
- Valuation: P/E 13.9× (fairly priced).
- Business: ROE 13.1 % (weak).
- Balance sheet: Debt/Equity 0.91 (fragile).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (12.3×) $151 (-11 %); at its sector median (13.0×) $159 (-6 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in financial services: 2 of 6 pass
- Operating margin 16.5 %, fails.
- ROE 13.1 %, fails.
- Debt / Equity 0.91, fails.
- P/E vs own 5y 13.9×, fails.
- 5y revenue growth 18.4 %, passes.
- FCF / Net Income 145.7 %, passes.
Against its peers (reference peers) — State Street Corporation: P/E 13.9×; EV/EBITDA 12.8×; ROIC 2.9 %; $46.2B. Northern Trust Corporation (P/E 13.3×; EV/EBITDA 0.3×; ROIC 6.9 %; $30.9B), Bank of New York Mellon Corp (P/E 17.2×; EV/EBITDA 3.9×; ROIC 5.3 %; $99.8B), Ameriprise Financial, Inc. (P/E 11.0×; EV/EBITDA 7.0×; ROIC 5.8 %; $43.4B).
Expensive or cheap against its last ten years?
P/E at each close: today 13.9× · median 12.3× · minimum 7.2× · maximum 20.3× · cheap below 10.5× · expensive above 15.2×. It has been cheaper than today 68% of the time over its last ten years.
Dividend
tight · Yield 2.0 % ($3.94 per share in 2025) · Years raising it 4 · 5-year growth +9 % a year · Free cash flow coverage -3.1× · With $1,000 invested today you'd collect $20.30 a year ($1.69 a month).
Kaplio's reading: State Street Corporation
Updated on October 15, 2026 · accounts published on October 14, 2026
A growing, cash-generative financial firm whose margins still trail its own history
State Street trades at a P/E of 13.9 over the last 12 months, 13 % above its ten-year median of 12.3, after the shares rose 50 % in a year.
- Is State Street expensive or cheap? Its P/E has been lower than today's in 68 % of the last decade, and it sits 6 % above the sector median of 13.0.
- How is the business doing? EPS grew 14.5 % over the last 12 months on revenue up just 3 %, with operating margin back to 19 % from 16.5 % in fiscal 2025.
- How strong is the balance sheet? Debt/equity is 0.91 over the last 12 months, and the dividend has risen four fiscal years running with a 38 % payout in 2025.
- What to expect from the next earnings? Analysts expect EPS of $3.65 on January 15, 2027, after State Street beat estimates in each of the last 8 quarters.
- Is it a scalable, lightly leveraged business? It passes 2 of 5 sector tests: revenue per share grew 18.4 % a year in 2020-2025, but fiscal 2025 operating margin was 16.5 % vs 30 %.
Is State Street expensive or cheap?
At a P/E of 13.9 over the last 12 months, State Street trades 13 % above its ten-year median of 12.3, and the multiple has been lower than today's for three quarters of the decade. Against a median of 13.0 for 474 financial-services peers the premium is 6 %. It is also above 110 % of its five-year average of 12.5, the line this sector uses to call a P/E expensive. The shares rose 50 % in 12 months, well ahead of 14.5 % EPS growth. The earnings yield of 8.1 % and free cash flow yield of 7.7 % remain solid, just less generous than usual.
How is the business doing?
Over the last 12 months State Street grew revenue 3.0 % but EPS 14.5 %, so profit per share is rising much faster than sales. The operating margin of 19 % recovers from 16.5 % in fiscal 2025, though it remains below the 21 % average of fiscal 2014-2025. The net margin is 15 % and ROE is 12.3 %, a modest return on the capital employed. Over fiscal 2020-2025 revenue per share compounded at 18.4 % a year, three times the 6 % this sector treats as healthy, and free cash flow reached 146 % of net profit in fiscal 2025.
How strong is the balance sheet?
Debt/equity of 0.91 over the last 12 months is above the 0.5 that counts as prudent for a financial-services firm, so the balance sheet carries more leverage than this sector's yardstick likes. The dividend side is steadier: a 2.0 % yield, four consecutive fiscal years of higher dividends per share through 2025 and a payout of 38 % of earnings in fiscal 2025, which keeps most profit inside the company. With free cash flow at 146 % of net income in fiscal 2025, the dividend is covered by cash as well as by accounting profit.
What to expect from the next earnings?
On October 14, 2026 State Street reported EPS of $3.69 against $3.68 expected, a 0.3 % beat that extends its record to 8 beats in 8 quarters, though by a thin margin this time. For the next quarter, due January 15, 2027, analysts expect $3.65. The 2026 EPS consensus has edged up 0.8 % in 30 days, from $13.64 to $13.76 across 10 analysts, while revenue forecasts barely moved. Of 37 analysts, 17 rate it a buy, 15 a hold and 4 a sell, a split view after the 47 % run in the shares.
Is it a scalable, lightly leveraged business?
Asset managers, brokers and exchanges are not lending banks, so this sector is judged on revenue growth, fee-driven margins and cash quality. State Street passes on growth, with revenue per share up 18.4 % a year over fiscal 2020-2025 against a 6 % bar, and on cash, converting 146 % of fiscal 2025 net profit into free cash flow against a 90 % bar. It falls short on scale economics: an operating margin of 16.5 % in fiscal 2025 against a healthy 30 %, ROE of 12.3 % over the last 12 months against 15 % and debt/equity of 0.91 against a prudent 0.5. Growth and cash pass; profitability lags.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Peter Lynch approve State Street today?
The Lynch Method approves State Street today. Business quality: 100 out of 100 (price not included). Lynch classifies it as an asset play. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 13.10% |
| Return on Invested Capital | 2.94% |
| Return on Assets | 0.91% |
| Gross Margin | 66.43% |
| Operating Margin | 20.02% |
| Net Margin | 15.82% |
Financial Health
| Debt / Equity | 0.91 |
| Current Ratio | 92.69 |
| Piotroski F-Score | 8 |
| Altman Z-Score | -0.01 |
Price Performance
| 1 month | -3.52% |
| 3 months | -7.57% |
| Year-to-date | +31.59% |
| 1 year | +46.78% |
| 3 years | +154.60% |
| 5 years | +70.73% |
| 10 years | +141.32% |
Dividend History
Paid in the last 12 months: $3.4400 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-10-01 | $0.9200 |
| 2026-07-01 | $0.8400 |
| 2026-04-01 | $0.8400 |
| 2026-01-02 | $0.8400 |
| 2025-10-01 | $0.8400 |
| 2025-07-01 | $0.7600 |
| 2025-04-01 | $0.7600 |
| 2025-01-02 | $0.7600 |
| 2024-10-01 | $0.7600 |
| 2024-07-01 | $0.6900 |
Amounts adjusted for stock splits.
Related companies: BNY · NTRS · BLK · 0QZZ.L · BX · BN.TO · BAM.TO · BN
Explore sector: Financial Services · Asset Management
More sections of STT: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks