SF Investment Analysis Report & Stock Research, Stifel Financial Corp.

Stifel Financial Corp. (SF)

SF Stock Report

2-Year Price History

View Larger SF Chart
NYSE:SF
$56.07
(8/28 6:40PM)
+2.2%
Open$55.53 Mkt Cap$1.6 Billion
High$57.13 52Wk High$60.61
Low$55.44 52Wk Low$29.13
Volume303,415 Avg Vol 10D203,500

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SF Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at SF through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.41x and 0.75x respectively.

Utilizing this range we can see that SF’s current Price to Sales per share ratio of 1.45x is significantly above its historical average. This places SF at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 34% merely to return SF to its historical average.

SF Cash Earnings

Looking at SF specifically in their Cash Earnings capabilities, Ockham views SF as above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for SF to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 30.99 and a 17.79 low over the same period.

So, again, with a current Price to Cash Earnings per share ratio of 27.62, SF is presently above its historical range. Ockham Research is always focused upon the value that investors have placed upon a given metric in the past. In other words, how much would an investor pay for a particular level of Cash Earnings in terms of stock price, and how does that relate to today. Naturally, we utilize proprietary methods to accomplish this, but the basic premise holds true and is simple to understand. For SF, we are a bit negative on the Cash Earnings level given its higher than historical norm.

SF Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

Peer Comparison

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Stifel Financial Corp. Industry Grouping

(8/28/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding SF) 119.18 39.90 » 82.58 1.30 1.25 » 9.93 9.98% 9.81%
*10 year range does not include current year values
AllianceBernstein Holding LP AB $2.1 Billion $22.46 15.60 4.30 » 38.90 0.37 3.78 » 33.86 22.64% 18.66%
Knight Capital Group Inc. NITE $1.8 Billion $19.68 11.44 5.76 » 79.00 1.93 0.67 » 5.89 9.38% 13.28%
Stifel Financial Corp. SF $1.6 Billion $56.07 27.62 5.15 » 50.05 1.45 0.35 » 1.79 32.02% 10.86%
Gamco Investors, Inc. GBL $1.2 Billion $44.64 57.97 7.82 » 81.48 4.22 1.81 » 9.88 -2.07% 14.12%
Liberty Acquisition Holdings Corp. LIA $1.2 Billion $9.41 188.20 78.50 » 96.00 0.00 0.00 » 0.00 n/a 1.90%
Trian Acquisition I Corp. TUX $1.1 Billion $9.68 322.67 103.13 » 117.53 0.00 0.00 » 0.00 n/a 1.10%

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The Latest Financial News
5:33:32 PM SF $51.75 Stifel Financial Corp.
5/8/2009 5:33 PM
“…We're hiring people every day across all segments, private client, corporate finance, wealth management. We see a huge void, and we're going to take advantage of it. >> ron kruszewski, thank you very much for joining us. Chairman and ceo of STIFEL FINANCIAL. Don't go anywhere. America's post-market show >>> on tonight's "trader radar" we look at the stock lighting up …” - SF on Fast Money
5:29:53 PM SF $51.75 Stifel Financial Corp.
5/8/2009 5:29 PM
“…The markets starting to see some so wall street's licking its wounds and looking forward. Ronald krashevski is chairman and ceo of STIFEL FINANCIAL. Ron, it is great to have you >> great to see you, melissa. >> first of all, got to ask you your reaction to the stress test, the release of them, and do you believe that the worst is over for the financials? …” - SF on Fast Money
3:42:52 PM SF $37.25 Stifel Financial Corp.
2/12/2009 3:42 PM
“…Gasparino. >> maybe they'll invite maria next time. >> don't hold your breath. We'll talk to you soon. Maria. He shouldn't. I'm not holding mine. >> up next, STIFEL FINANCIAL forecasting very strong fourth quarter results. We'll talk about that. What kind of impact the company's chairman and ceo is seeing from this upset in the financial services area. We will talk about that coming …” - SF on Closing Bell
View All Stifel Financial Corp. News

Key Fundamentals

SF - Stifel Financial Corp. Fundamentals
Price (8/28 6:40PM) $56.07
Volume (8/28 6:40PM) 303,415
Last Close Price $54.84
10 Day Average Volume 203,500
13 Week Price Range $43.02 - $57.13
52 Week Price Range $29.13 - $60.61
LTM Revenue $944.5 Million
 
Shares Outstanding (12/2008) 28.5 Million
Market Capitalization $1.6 Billion
Shares Held By Institutions 21.9 Million
Institutional Holders 208
% Shares Held By Institutions 79.90%
Earnings Per Share (EPS) $1.98
P/E Ratio 28.80
Book Value Per Share $24.68
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.11
Fiscal Year Ends December

About Stifel Financial Corp.

Stifel Financial Corp. is considered to operate in the Financial sector. They specifically operate in the Investmnt Brokerage-Regional business segment contained within the Financial Services industry.

The Company through its wholly-owned subsidiaries is mainly engaged in retail brokerage, securities trading, investment banking, investment advisory, retail, consumer and commercial banking and related financial services throughout the United States.